The CCPA Impacts Non-US Companies. Are You Prepared? - Morgan Lewis Practical Advice on Privacy: Guide to the CCPA

Morgan Lewis

California is the fifth largest economy in the world. Its new laws and regulations have an impact far beyond its borders. Many Non-US companies do business in California. The California Consumer Privacy Act (CCPA), which becomes effective on January 1, 2020, applies broadly, and includes companies that are based outside of the state. This article discusses how the CCPA impacts non-US companies and what those companies need to do to prepare for CCPA compliance.

A “covered business” subject to the CCPA is any for-profit organization or legal entity that

  • does business in California;
  • collects California residents’ “personal information” either directly or through a third party on its behalf;
  • determines the purposes and means of processing that information; and
  • one of the following applies: (i) has gross revenues in excess of $25 million; or (ii) annually buys, receives for the business’s commercial purposes, sells or shares for commercial purposes the personal information of 50,000 or more consumers, households or devices; or (iii) derives 50% or more of its annual revenues from selling consumers’ personal information.

Additional analysis concerning the above criteria follows.

First Step: Is Your Company a ‘Business’ or a ‘Service Provider’ and Does It ‘Collect’ ‘Personal Information?’

The CCPA defines many terms broadly. For example, the definition of “business” includes any entity that controls or is controlled by a business if they share common branding. This definition includes, for instance, a non-US parent company that does business in California through a branch located in California or another state. It should be noted that the CCPA applies to brick-and-mortar businesses as well as the collection of personal information over the internet or electronic records.

The CCPA may indirectly apply to non-US-based companies if they are classified as a “service provider” to a business subject to the CCPA. A “service provider” is a legal entity that receives information from a business pursuant to a written contract that prohibits the entity receiving the information from retaining, using, or disclosing the personal information for any purpose other than for the specific purpose of performing the services specified in the contract for the business or as otherwise permitted under the CCPA. Similar to the European Union’s General Data Protection Regulation (GDPR), consumers may make certain requests directly to a “service provider” regarding the information they have collected, how the information is shared, and how it is used. Pursuant to draft CCPA Regulations issued by the California attorney general, the “service provider” can either comply with the request or inform the consumer to submit the request directly to the covered business. Moreover, the “service provider” may not use personal information received from a consumer or a business for any other purpose. It only may combine such personal information to detect data security incidents or protect against fraudulent or illegal activity. The service provider may, however, use information in de-identified or aggregate form.

Example: A German game developer working for a company in California that receives the IP address of a gamer in California under a service provider contract with the California company may not use that IP address to send marketing emails of its own to the gamer and may not sell the gamer’s personal information. The game developer must also respond to inquiries it receives directly from the gamer in California to find out what the game developer has stored about the gamer, although the game developer may refer the gamer to the California company for a response.

The term “collects” is defined in the CCPA to include “buying, renting, gathering, obtaining, receiving, or accessing any personal information pertaining to a consumer by any means.” The CCPA’s definition of “business” resembles the GDPR’s concept of a “data controller” that European companies are familiar with. Under the GDPR’s definition, an entity is a controller if it either alone, or jointly with others, determines the purposes and means of processing of consumers’ personal information.

The term “personal information” is also broadly defined under the CCPA. As the California legislature recently clarified, the CCPA covers “personal information” broadly defined as including information “that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household.” This definition comprises unique personal identifier, online identifier, and IP address such that it would include a “device” that can be associated with an individual or household (Sec. 1798.140 (o) (1) (A)). A “device” means any physical object that is capable of connecting to the internet, directly or indirectly, or to another device. This could be a smartphone, a computer, any IoT device or other internet-protocol-enabled equipment. The reasonableness standard now applies both to information that “is reasonably capable of being associated with. . .a particular consumer or household” and to information that “could reasonably be linked, directly or indirectly, with a particular consumer or household.” Internet or other electronic network activity, such as browsing history, search history, and information regarding consumers’ or households’ interaction with a website, application, or advertisement is covered, in addition to name, address, personal identifier, IP address, email address, account name, Social Security number, driver’s license number, or passport number. By contrast, GDPR always relates the information to living individuals, not to “households,” and does not apply the “reasonableness” threshold.

Note the General Exemptions

Certain personal information collected from job applicants, employees, owners, directors, staff, officers, and contractors of a business is currently exempted from the “request” requirements of the CCPA for one year, until January 1, 2021. The notice provisions and private right of action still apply to exempted information. The exempted “personal information” includes that collected and used

(1) about a person as a job applicant, employee, owner, director, officer, medical staff member, or contractor of that business;

(2) solely for the purpose of maintaining emergency contact information; and

(3) solely to administer benefits to an individual’s dependents.

The CCPA also exempts from the definition of “personal information” vehicle information and vehicle ownership information that is retained or shared by dealers and vehicle manufacturers for purposes of a warranty repair or recall-related vehicle repair. The dealer or vehicle manufacturer receiving such information cannot sell, share, or use that information for any other purpose.

Moreover, some types of information that are governed by US federal or California privacy statutes are currently excluded from the CCPA. For example, medical information subject to Health Insurance Portability Accessibility Act (HIPAA) or the California Confidentiality of Medical Information Act and personal information subject to the Gramm-Leach-Bliley (GLBA) or the California Financial Privacy Act is exempt.

Second Step: Does Your Company Exceed One of the Relevant Thresholds?

If a company determines that it is a “business,” or a “service provider” and it “collects” personal information, it needs to decide whether it exceeds one of the three thresholds of the CCPA:

(1) Annual gross revenues in excess of $25 million; or

(2) Annually buys, receives, sells, or shares the personal information of 50,000 or more consumers, households, or devices, alone or in combination; or

(3) It derives 50% or more of its annual revenue from selling consumers’ personal information.

This is not an easy decision. The first threshold can be tricky because the amount does not appear to be limited to California revenues. Whether “US gross revenue” or “worldwide revenue” is meant is currently open to interpretation. It is probably better to play it safe and assume that “worldwide revenue” is the relevant metric until further guidance is provided. The term “gross revenue” is also not defined. It is advisable to look at the most recent tax statement of the “covered business.”

For the other two thresholds one should keep in mind that the term “personal information” is broader than the term “personal data” pursuant to the GDPR, and the term “consumer” includes employees, job applicants, independent contractors, owners, officers, and directors.

Third Step: Commence with Your Compliance Measures

The CCPA will become effective on January 1, 2020. Although the attorney general cannot bring claims for violations until July 1, 2020 (or earlier, if the proposed regulations are finalized before the end of 2019), it is possible his office would issue notices regarding noncompliance prior to that date. As of January 1, 2020, consumers will have a new private right of action for security breaches involving nonencrypted and non-redacted information. It is advisable to have at least some CCPA compliance measures in place by January 1, 2020, as consumers in California will have rights under the CCPA by that date. You should not assume that GDPR compliance automatically satisfies CCPA compliance as the scope and individual rights under both laws are different. Covered Non-US companies should therefore

  • assess what “personal information” is collected based on the CCPA’s broad definition;
  • review and update privacy policies;
  • revise website home pages that cater to California consumers;
  • determine whether the third parties with whom the company shares personal information are “service providers” and identify those non-service providers to whom the company “sells” information under CCPA;
  • devise and implement methods to accept, process, verify, and respond to consumer requests from California residents – including requests to know, requests to delete, or requests to opt out of sale;
  • provide the required notices to employees, owners, officers, directors, job applicants, and independent contractors;
  • consider enhancing safeguards around “personal information”; and
  • review and assess “reasonable security procedures” in place to protect personal information.

If you are involved in running a business that might be covered by the CCPA, seek professional assistance to make these determinations and implement these procedures. For EU-based data controllers or processors, full compliance could become even more challenging as personal information from California consumers that is stored in or accessed from the EU/EEA may also fall under the GDPR. For instance, opt-out or access requests under the GDPR and CCPA are treated differently.

At Morgan Lewis, we are helping many companies to determine what they need to do and guide them in doing it. That includes companies that principally operate outside the United States and companies that have implemented GDPR and now must take different or additional steps because of the CCPA.

The California attorney general issued proposed regulations for the CCPA on October 10, 2019. The proposed regulations are pending public comment through December 6, 2019. As part of the rulemaking process, the California attorney general will then decide whether any modifications should be made to the proposed regulations before they become final. In the meantime, the proposed regulations provide useful guidance as businesses prepare for and comply with the CCPA, which takes effect on January 1, 2020.

Please visit our CCPA Resource Center for more information and the latest updates.


Written by:

Morgan Lewis

Morgan Lewis on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide

JD Supra Privacy Policy

Updated: May 25, 2018:

JD Supra is a legal publishing service that connects experts and their content with broader audiences of professionals, journalists and associations.

This Privacy Policy describes how JD Supra, LLC ("JD Supra" or "we," "us," or "our") collects, uses and shares personal data collected from visitors to our website (located at (our "Website") who view only publicly-available content as well as subscribers to our services (such as our email digests or author tools)(our "Services"). By using our Website and registering for one of our Services, you are agreeing to the terms of this Privacy Policy.

Please note that if you subscribe to one of our Services, you can make choices about how we collect, use and share your information through our Privacy Center under the "My Account" dashboard (available if you are logged into your JD Supra account).

Collection of Information

Registration Information. When you register with JD Supra for our Website and Services, either as an author or as a subscriber, you will be asked to provide identifying information to create your JD Supra account ("Registration Data"), such as your:

  • Email
  • First Name
  • Last Name
  • Company Name
  • Company Industry
  • Title
  • Country

Other Information: We also collect other information you may voluntarily provide. This may include content you provide for publication. We may also receive your communications with others through our Website and Services (such as contacting an author through our Website) or communications directly with us (such as through email, feedback or other forms or social media). If you are a subscribed user, we will also collect your user preferences, such as the types of articles you would like to read.

Information from third parties (such as, from your employer or LinkedIn): We may also receive information about you from third party sources. For example, your employer may provide your information to us, such as in connection with an article submitted by your employer for publication. If you choose to use LinkedIn to subscribe to our Website and Services, we also collect information related to your LinkedIn account and profile.

Your interactions with our Website and Services: As is true of most websites, we gather certain information automatically. This information includes IP addresses, browser type, Internet service provider (ISP), referring/exit pages, operating system, date/time stamp and clickstream data. We use this information to analyze trends, to administer the Website and our Services, to improve the content and performance of our Website and Services, and to track users' movements around the site. We may also link this automatically-collected data to personal information, for example, to inform authors about who has read their articles. Some of this data is collected through information sent by your web browser. We also use cookies and other tracking technologies to collect this information. To learn more about cookies and other tracking technologies that JD Supra may use on our Website and Services please see our "Cookies Guide" page.

How do we use this information?

We use the information and data we collect principally in order to provide our Website and Services. More specifically, we may use your personal information to:

  • Operate our Website and Services and publish content;
  • Distribute content to you in accordance with your preferences as well as to provide other notifications to you (for example, updates about our policies and terms);
  • Measure readership and usage of the Website and Services;
  • Communicate with you regarding your questions and requests;
  • Authenticate users and to provide for the safety and security of our Website and Services;
  • Conduct research and similar activities to improve our Website and Services; and
  • Comply with our legal and regulatory responsibilities and to enforce our rights.

How is your information shared?

  • Content and other public information (such as an author profile) is shared on our Website and Services, including via email digests and social media feeds, and is accessible to the general public.
  • If you choose to use our Website and Services to communicate directly with a company or individual, such communication may be shared accordingly.
  • Readership information is provided to publishing law firms and authors of content to give them insight into their readership and to help them to improve their content.
  • Our Website may offer you the opportunity to share information through our Website, such as through Facebook's "Like" or Twitter's "Tweet" button. We offer this functionality to help generate interest in our Website and content and to permit you to recommend content to your contacts. You should be aware that sharing through such functionality may result in information being collected by the applicable social media network and possibly being made publicly available (for example, through a search engine). Any such information collection would be subject to such third party social media network's privacy policy.
  • Your information may also be shared to parties who support our business, such as professional advisors as well as web-hosting providers, analytics providers and other information technology providers.
  • Any court, governmental authority, law enforcement agency or other third party where we believe disclosure is necessary to comply with a legal or regulatory obligation, or otherwise to protect our rights, the rights of any third party or individuals' personal safety, or to detect, prevent, or otherwise address fraud, security or safety issues.
  • To our affiliated entities and in connection with the sale, assignment or other transfer of our company or our business.

How We Protect Your Information

JD Supra takes reasonable and appropriate precautions to insure that user information is protected from loss, misuse and unauthorized access, disclosure, alteration and destruction. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. You should keep in mind that no Internet transmission is ever 100% secure or error-free. Where you use log-in credentials (usernames, passwords) on our Website, please remember that it is your responsibility to safeguard them. If you believe that your log-in credentials have been compromised, please contact us at

Children's Information

Our Website and Services are not directed at children under the age of 16 and we do not knowingly collect personal information from children under the age of 16 through our Website and/or Services. If you have reason to believe that a child under the age of 16 has provided personal information to us, please contact us, and we will endeavor to delete that information from our databases.

Links to Other Websites

Our Website and Services may contain links to other websites. The operators of such other websites may collect information about you, including through cookies or other technologies. If you are using our Website or Services and click a link to another site, you will leave our Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We are not responsible for the data collection and use practices of such other sites. This Policy applies solely to the information collected in connection with your use of our Website and Services and does not apply to any practices conducted offline or in connection with any other websites.

Information for EU and Swiss Residents

JD Supra's principal place of business is in the United States. By subscribing to our website, you expressly consent to your information being processed in the United States.

  • Our Legal Basis for Processing: Generally, we rely on our legitimate interests in order to process your personal information. For example, we rely on this legal ground if we use your personal information to manage your Registration Data and administer our relationship with you; to deliver our Website and Services; understand and improve our Website and Services; report reader analytics to our authors; to personalize your experience on our Website and Services; and where necessary to protect or defend our or another's rights or property, or to detect, prevent, or otherwise address fraud, security, safety or privacy issues. Please see Article 6(1)(f) of the E.U. General Data Protection Regulation ("GDPR") In addition, there may be other situations where other grounds for processing may exist, such as where processing is a result of legal requirements (GDPR Article 6(1)(c)) or for reasons of public interest (GDPR Article 6(1)(e)). Please see the "Your Rights" section of this Privacy Policy immediately below for more information about how you may request that we limit or refrain from processing your personal information.
  • Your Rights
    • Right of Access/Portability: You can ask to review details about the information we hold about you and how that information has been used and disclosed. Note that we may request to verify your identification before fulfilling your request. You can also request that your personal information is provided to you in a commonly used electronic format so that you can share it with other organizations.
    • Right to Correct Information: You may ask that we make corrections to any information we hold, if you believe such correction to be necessary.
    • Right to Restrict Our Processing or Erasure of Information: You also have the right in certain circumstances to ask us to restrict processing of your personal information or to erase your personal information. Where you have consented to our use of your personal information, you can withdraw your consent at any time.

You can make a request to exercise any of these rights by emailing us at or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

You can also manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard.

We will make all practical efforts to respect your wishes. There may be times, however, where we are not able to fulfill your request, for example, if applicable law prohibits our compliance. Please note that JD Supra does not use "automatic decision making" or "profiling" as those terms are defined in the GDPR.

  • Timeframe for retaining your personal information: We will retain your personal information in a form that identifies you only for as long as it serves the purpose(s) for which it was initially collected as stated in this Privacy Policy, or subsequently authorized. We may continue processing your personal information for longer periods, but only for the time and to the extent such processing reasonably serves the purposes of archiving in the public interest, journalism, literature and art, scientific or historical research and statistical analysis, and subject to the protection of this Privacy Policy. For example, if you are an author, your personal information may continue to be published in connection with your article indefinitely. When we have no ongoing legitimate business need to process your personal information, we will either delete or anonymize it, or, if this is not possible (for example, because your personal information has been stored in backup archives), then we will securely store your personal information and isolate it from any further processing until deletion is possible.
  • Onward Transfer to Third Parties: As noted in the "How We Share Your Data" Section above, JD Supra may share your information with third parties. When JD Supra discloses your personal information to third parties, we have ensured that such third parties have either certified under the EU-U.S. or Swiss Privacy Shield Framework and will process all personal data received from EU member states/Switzerland in reliance on the applicable Privacy Shield Framework or that they have been subjected to strict contractual provisions in their contract with us to guarantee an adequate level of data protection for your data.

California Privacy Rights

Pursuant to Section 1798.83 of the California Civil Code, our customers who are California residents have the right to request certain information regarding our disclosure of personal information to third parties for their direct marketing purposes.

You can make a request for this information by emailing us at or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

Some browsers have incorporated a Do Not Track (DNT) feature. These features, when turned on, send a signal that you prefer that the website you are visiting not collect and use data regarding your online searching and browsing activities. As there is not yet a common understanding on how to interpret the DNT signal, we currently do not respond to DNT signals on our site.

Access/Correct/Update/Delete Personal Information

For non-EU/Swiss residents, if you would like to know what personal information we have about you, you can send an e-mail to We will be in contact with you (by mail or otherwise) to verify your identity and provide you the information you request. We will respond within 30 days to your request for access to your personal information. In some cases, we may not be able to remove your personal information, in which case we will let you know if we are unable to do so and why. If you would like to correct or update your personal information, you can manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard. If you would like to delete your account or remove your information from our Website and Services, send an e-mail to

Changes in Our Privacy Policy

We reserve the right to change this Privacy Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our Privacy Policy will become effective upon posting of the revised policy on the Website. By continuing to use our Website and Services following such changes, you will be deemed to have agreed to such changes.

Contacting JD Supra

If you have any questions about this Privacy Policy, the practices of this site, your dealings with our Website or Services, or if you would like to change any of the information you have provided to us, please contact us at:

JD Supra Cookie Guide

As with many websites, JD Supra's website (located at (our "Website") and our services (such as our email article digests)(our "Services") use a standard technology called a "cookie" and other similar technologies (such as, pixels and web beacons), which are small data files that are transferred to your computer when you use our Website and Services. These technologies automatically identify your browser whenever you interact with our Website and Services.

How We Use Cookies and Other Tracking Technologies

We use cookies and other tracking technologies to:

  1. Improve the user experience on our Website and Services;
  2. Store the authorization token that users receive when they login to the private areas of our Website. This token is specific to a user's login session and requires a valid username and password to obtain. It is required to access the user's profile information, subscriptions, and analytics;
  3. Track anonymous site usage; and
  4. Permit connectivity with social media networks to permit content sharing.

There are different types of cookies and other technologies used our Website, notably:

  • "Session cookies" - These cookies only last as long as your online session, and disappear from your computer or device when you close your browser (like Internet Explorer, Google Chrome or Safari).
  • "Persistent cookies" - These cookies stay on your computer or device after your browser has been closed and last for a time specified in the cookie. We use persistent cookies when we need to know who you are for more than one browsing session. For example, we use them to remember your preferences for the next time you visit.
  • "Web Beacons/Pixels" - Some of our web pages and emails may also contain small electronic images known as web beacons, clear GIFs or single-pixel GIFs. These images are placed on a web page or email and typically work in conjunction with cookies to collect data. We use these images to identify our users and user behavior, such as counting the number of users who have visited a web page or acted upon one of our email digests.

JD Supra Cookies. We place our own cookies on your computer to track certain information about you while you are using our Website and Services. For example, we place a session cookie on your computer each time you visit our Website. We use these cookies to allow you to log-in to your subscriber account. In addition, through these cookies we are able to collect information about how you use the Website, including what browser you may be using, your IP address, and the URL address you came from upon visiting our Website and the URL you next visit (even if those URLs are not on our Website). We also utilize email web beacons to monitor whether our emails are being delivered and read. We also use these tools to help deliver reader analytics to our authors to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

Analytics/Performance Cookies. JD Supra also uses the following analytic tools to help us analyze the performance of our Website and Services as well as how visitors use our Website and Services:

  • HubSpot - For more information about HubSpot cookies, please visit
  • New Relic - For more information on New Relic cookies, please visit
  • Google Analytics - For more information on Google Analytics cookies, visit To opt-out of being tracked by Google Analytics across all websites visit This will allow you to download and install a Google Analytics cookie-free web browser.

Facebook, Twitter and other Social Network Cookies. Our content pages allow you to share content appearing on our Website and Services to your social media accounts through the "Like," "Tweet," or similar buttons displayed on such pages. To accomplish this Service, we embed code that such third party social networks provide and that we do not control. These buttons know that you are logged in to your social network account and therefore such social networks could also know that you are viewing the JD Supra Website.

Controlling and Deleting Cookies

If you would like to change how a browser uses cookies, including blocking or deleting cookies from the JD Supra Website and Services you can do so by changing the settings in your web browser. To control cookies, most browsers allow you to either accept or reject all cookies, only accept certain types of cookies, or prompt you every time a site wishes to save a cookie. It's also easy to delete cookies that are already saved on your device by a browser.

The processes for controlling and deleting cookies vary depending on which browser you use. To find out how to do so with a particular browser, you can use your browser's "Help" function or alternatively, you can visit which explains, step-by-step, how to control and delete cookies in most browsers.

Updates to This Policy

We may update this cookie policy and our Privacy Policy from time-to-time, particularly as technology changes. You can always check this page for the latest version. We may also notify you of changes to our privacy policy by email.

Contacting JD Supra

If you have any questions about how we use cookies and other tracking technologies, please contact us at:

- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.