CCPA Restrictions on Third Parties Handling Consumer Information (115.d)

Overview:
A third party shall not sell personal information about a consumer that has been sold to the third party by a business unless the consumer has received explicit notice and is provided an opportunity to exercise the right to opt out pursuant to Section 1798.120.

Action Items:
1) Review existing privacy notices and verify that they meet each of the new requirements of the CCPA.
2) Identify instances in which you may be collecting information about Californians and do not currently have a privacy notice. In such situations, draft a privacy notice that conforms with both the CCPA and with other privacy laws that may apply (e.g. the GDPR).
3) Review existing methods for submitting access requests to your organization to verify they comply with the CCPA.
4) Train employees on the handling of access requests.
5) Verify that the policy in place facilitates the fulfillment of access requests within the time period permitted by the statute.
6) Establish a means to establish a request is a proper Verifiable Consumer Request (VCR). A "Verifiable Consumer Request" means a request where a Business can verify that the Consumer making the request is the Consumer about whom the business has collected Personal Information or is a person authorized by the Consumer to act on such Consumer's behalf. The attorney general will need to promulgate guidance on what constitutes a VCR, although the Act suggests that a Business can deem a request from a Consumer who is already logged into a service to be verified.
7) Create a process to readily access the specific Personal Information the Business has about each Consumer. This includes knowing what Personal Information is held and what "category" it falls into; where it is stored; and having the ability to extract it.
8) Create a tracking system to ensure compliance with the Response Time and that the request complies with the Applicable Time Period. Business must respond to a VCR by mail or electronically within 45 days (which can be extended for an additional 45 days upon notice to the consumer). The Business needs to inform the Consumer of any such extension within 45 days of receipt of the request, together with the reasons for the delay. Note: In a different section, the CCPA states the response to any VCR can be extended for an additional 90 days. It is unclear whether this is in addition to the two 45 day periods noted here. There is no obligation to provide this information to a Consumer more than twice in a 12-month period, and the information provided need only cover the 12-month period prior to the VCR.
9) Create a means to provide requested Personal Information in a portable and readily usable format. The Personal Information, if provided electronically, should be in a portable and in a readily usable format that allows the consumer to transmit this information from one entity to another entity "without hindrance." If the Consumer has an account with the Business the Personal Information should be delivered through that account. If the Consumer does not have such an account, it can be delivered by mail or electronically at the Consumer's option. Note that a Business cannot require a consumer to create an account in order to submit a VCR.
10) Create a tracking system to each access request and how it was handled to be able to demonstrate compliance.

Related Documents:
1)Privacy Policy / Notice
2) Third Party Contracts and Agreements that outline this requirement

Additional Guidance:
Opt-Out Applicability to Third Parties
A third party that has received Personal Information from a Business may not sell that Information unless the Consumer has received explicit notice and an opportunity to opt out.

Service Provider Agreements
The CCPA allows businesses to share personal information with third parties or service providers for business purposes so long as there is a written contract that complies with the CCPA. Among other things, the CCPA prohibits any agreement or contract provision that seeks to waive or limit a consumer's rights under the CCPA.