Mandatly Knowledge Base
What Is a ‘Sale’ of Personal Data Under CCPA Regulations?
Introduction
The California Consumer Privacy Act (CCPA) has a broad definition of what constitutes a sale of personal information. It’s not just about selling data for money — any transfer of personal data for value can count as a sale under CCPA.
Understanding what counts as a CCPA sale is key for any business handling personal data of California residents.
What Does ‘Sale’ Mean Under CCPA?
Under the CCPA, “sale” of personal information is defined as:
“selling, renting, releasing, disclosing, disseminating, making available, transferring, or otherwise communicating orally, in writing, or by electronic or other means, a consumer’s personal information to another business or a third party for monetary or other valuable consideration.”
In simpler terms:
A sale under CCPA occurs when personal data is shared with a third party in exchange for money or some other benefit, such as advertising exposure or audience insights.
Key Elements That Define a CCPA Sale:
1. Exchange of Personal Information
A sale under CCPA includes:
- Selling
- Renting
- Disclosing
- Transferring or
- Making personal information available
These apply even if done electronically, verbally, or via software platforms.
2. Valuable Consideration
A CCPA sale doesn’t have to involve cash.
If your business shares data in exchange for benefits like
- Targeted advertising
- Analytics services
- insights
- Expanded audience reach
…it may be considered a sale under the law. This is known as “valuable consideration.”
3. Third-Party Data Sharing
If personal data is shared with a third party that:
- Is not a service provider
- Is not bound by a CCPA-compliant contract
…then it’s typically classified as a sale.
Examples of What May Be Considered a Sale:
- Selling customer email lists to advertisers
- Sharing browsing or behavioral data with ad networks
- Exchanging personal information for analytics tools or AI model training
These are examples of CCPA data transfers that could trigger opt-out requirements.
What Is Not Considered a Sale Under CCPA?
Not every transfer of personal information qualifies as a sale. Key exceptions include:
- Sharing with service providers under a valid CCPA agreement
- Legal disclosures, such as those required by law enforcement
- Consumer-directed disclosures, where the user chooses to interact with third-party features (e.g., social media buttons or embedded widgets)
These do not require an opt-out under the CCPA.
CCPA Opt-Out Requirements for Businesses:
If your business engages in personal data sales under CCPA, you must allow consumers to opt out.
Your business must:
- Display a “Do Not Sell My Personal Information” link on your website
- Provide an easy-to-use CCPA opt-out form
- Honor opt-out preference signals (if applicable under CPRA)
⚙️ Mandatly’s CCPA compliance software makes it simple to deploy a compliant, user-friendly opt-out mechanism on your site.