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Internet users are more concerned about consumer privacy and security incidents now than ever before. And local, state, and federal governments are creating legislation to meet these concerns, meaning businesses must know the details of these new laws and how they can comply. Below, we’ll explain the following question: What is a service provider under the CCPA? Knowing this is crucial for businesses to take the proper steps to set up privacy policies and guard data correctly.
If you want to learn more about what consumer privacy is and your online right, check out more of our articles. For example, we have one comparing the California Consumer Privacy Act vs the GDPR. And we have a detailed guide to the rights the CCPA provides California residents.
Service providers can find compliance checklists online to guarantee that their organization acts per the CCCPA.
Before going any further, understanding the CCPA and its intent is essential. The CCPA stands for California Consumer Privacy Act, a series of online privacy laws passed in 2018 to help set standards and definitions to guarantee consumers greater control over the data held by organizations and service providers.
So how does the CCPA define service providers? In essence, a service provider is a for-profit entity that collects and processes user data for other businesses. It’s important to note that there are specific rules around service providers as opposed to third-party.
For a business to be classified as a service provider, it must meet the following criteria:
To learn more about certain classifications under other data laws, you can read our article on how the GDPR defines personal information.
Businesses outside of California must also comply with the CCPA if they process the information of California residents.
Businesses must meet a list of compliance requirements to be deemed credible service providers. There are three main stipulations that service providers must meet:
For more information, read the CCPA to understand the finer details of service provider requirements.
STAT: The CCPA protects close to $12 billion of personal consumer data annually. (source)