Question

To which of the following situations would CCPA be applicable?

A. A company outside the US that has 25% of its annual revenue come from the selling of California citizens' personal data.

B. A company that is based in California, and which handles the personal data of up to 25,000 users.

C. A company that does business in California, and whose annual gross revenue is $50 million.

D. Not Applicable

Answer 1

The CCPA would apply to a company that does business in California and has an annual gross revenue of $50 million (Option C). The other options do not provide sufficient information to conclude whether the CCPA would apply based on the established criteria of the act.

Step-by-step explanation:

In determining whether the California Consumer Privacy Act (CCPA) is applicable to various situations, it is essential to look at the criteria set forth by the law regarding entities that conduct business in California. CCPA generally applies to companies that handle the personal data of California residents and either have annual gross revenues exceeding $25 million, possess the personal data of 50,000 or more consumers, households, or devices, or earn more than half of their annual revenue from selling consumers' personal information.

Option A might seem applicable, but it only specifies the percentage of revenue from selling personal data without clarity on the absolute revenue figures or the number of users' data being handled. Option B focuses on the number of users rather than CCPA's specified threshold of personal data of 50,000 consumers, households, or devices. Therefore, these options do not provide enough information to determine CCPA applicability confidently.