What should teams do about Service Provider And Contractor Contracts under the US CCPA?
Teams should use section 7051 to check the contract before personal information is disclosed to a service provider or contractor. The agreement must prohibit selling or sharing personal information, identify the limited and specified business purpose with enough detail, limit use and disclosure to that purpose or another CCPA-permitted purpose, require the same level of privacy protection as businesses, and give the business the right to audit and remediate misuse.
Section 7050 also matters because a person without a contract that complies with section 7051 is not a service provider or contractor under the CCPA. In that case, the disclosure may be treated as a sale or sharing and the business may need to provide opt-out rights instead.
The safest first step is to identify the vendor role, the specific business purpose, whether the vendor will subcontract, and whether the contract already includes the required limits and oversight rights before data is shared.
- Check whether the agreement names a limited and specified purpose, not a generic description of the whole contract.
- Confirm the contract bars selling or sharing the data and limits use to the contract purpose or another CCPA-permitted purpose.
- Make sure the business can take reasonable and appropriate steps to test, audit, stop, and remediate misuse.
- If the vendor uses a subcontractor, require a downstream contract that follows the same CCPA rules.
CPPA section 7051 supports the CCPA contract guidance for service providers and contractors.
CPPA section 7051 supports the CCPA contract guidance for service providers and contractors.
CPPA section 7051 supports the CCPA contract guidance for service providers and contractors.