California Consumer Privacy Act of 2018

The new act, which provides California residents with new rights, including a right to transparency about data collection, a right to be forgotten, a right to data portability, and a right to opt out of having their data sold (opt in, for minors), applies to businesses that collect consumers’ personal information, as well as to those that sell consumers’ personal information or disclose it for a “business purpose.”

The law defines the term “business” as a for-profit legal entity that collects consumers’ personal information and does business in the state of California. For purposes of our analysis, we assume that this law does not apply to nonprofit entities, although that is not entirely clear from the definition. We also assume, consistent with well-established jurisprudence on long-arm jurisdiction, that “doing business” in California applies to companies that sell goods or services to California residents even if the business is not physically located in the state.

In addition, to fall within the law’s jurisdiction, a business must meet one of the following conditions:

Have $25 million or more in annual revenue.

Possess the personal data of more than 50,000 “consumers, households, or devices.”

Earn more than half of its annual revenue selling consumers’ personal data.