Service Provider Agreements and Data Flows

CCPA distinguishes between "service providers" who process data on behalf of businesses and "third parties" who receive data for their own purposes. This distinction has significant implications for data sharing and consumer rights. Service provider agreements must include specific CCPA-required provisions, including prohibitions on selling shared data and requirements to delete data upon request.

Developers must implement systems to track all data flows to ensure proper categorization of recipients. This tracking enables accurate responses to consumer requests about data sharing and supports compliance with opt-out requirements. API integrations require particular attention to ensure data sharing complies with CCPA requirements and service provider agreements.