Understanding CCPA Scope and Applicability

CCPA applies to for-profit businesses that meet specific thresholds: annual gross revenues exceeding $25 million, buying, receiving, or selling personal information of 50,000 or more California residents annually, or deriving 50% or more of annual revenues from selling California residents' personal information. Unlike GDPR's global reach, CCPA focuses specifically on California residents, though many businesses implement CCPA requirements nationwide for consistency.

The definition of "personal information" under CCPA is notably broad, encompassing any information that identifies, relates to, describes, or could reasonably be linked with a particular consumer or household. This includes traditional identifiers like names and email addresses, but extends to IP addresses, browsing history, geolocation data, biometric information, and even inferences drawn from other data. Understanding this broad definition is crucial for developers implementing data collection and processing systems.

CCPA's concept of "selling" personal information differs significantly from common understanding. Under CCPA, selling includes disclosing personal information for monetary or other valuable consideration. This broad definition can encompass data sharing with third parties for advertising purposes, even when no money changes hands. Developers must carefully track all data flows to identify potential "sales" under CCPA's definition.