CCPA Privacy FAQs: Is a Service Provider Responsible if its Client Violates the CCPA?

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No.

In order to be considered a “service provider” for the purposes of the CCPA, a vendor must be bound by a written contract that prohibits it from:

  1. retaining the personal information “for any purpose other than for the specific purpose of performing the services specified in the contract . . . or as otherwise permitted by this title,”
  2. using the personal information “for any purpose other than for the specific purpose of performing the services specified in the contract . . . or as otherwise permitted by this title,” or
  3. disclosing the personal information “for any purpose other than for the specific purpose of performing the services specified in the contract . . . or as otherwise permitted by this title.”

If a service provider negotiates an agreement with a client that contains the three provisions above, the CCPA states that the service provider will “not be liable” in the event that it’s client fails to fulfil the client’s obligations as a “business” under the Act. So, for example, a service provider should not be liable if its client fails to post a privacy notice, inaccurately describes its sharing practices, or fails to disclose that it has transferred personal information to the service provider.

For more information and resources about the CCPA visit http://www.CCPA-info.com.


This article is part of a multi-part series published by BCLP to help companies understand and implement the General Data Protection Regulation, the California Consumer Privacy Act and other privacy statutes. You can find more information on the CCPA in BCLP’s California Consumer Privacy Act Practical Guide, and more information about the GDPR in the American Bar Association’s The EU GDPR: Answers to the Most Frequently Asked Questions.

1. CCPA, Section 1798.140(v).

2. CCPA, Section 1798.140(v).

3. CCPA, Section 1798.140(v).

4. CCPA, Section 1798.145(h)

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