ABC Corp. is a consumer-facing business that uses a number of vendors to help operate its business, such as payment processors, cloud service providers, and an e-commerce platform.
If ABC Corp. were subject to the California Consumer Privacy Act (CCPA), what would it have to do in order to avoid having its transfer of personal information to vendors be considered a "sale" of personal information?
Under the California Consumer Privacy Act (CCPA), a 'sale' of personal information occurs when a business transfers personal information in exchange for monetary or other valuable consideration. To avoid having its transfer of personal information to vendors considered a 'sale,' ABC Corp. needs to ensure that it enters into a contract with the vendors that contains specific terms. These terms must restrict what the vendors can do with the personal information, including prohibiting them from selling the information, using it for purposes other than providing the contracted services, and retaining, using, or disclosing the information outside the contract's scope. This ensures that the transfer is for a specific service provision and not considered a sale of personal information.
Under the California Consumer Privacy Act (CCPA), a "sale" of personal information occurs when a business transfers, or makes available, personal information to another business or a third party for monetary or other valuable consideration. To avoid the transfer of personal information to vendors being considered a "sale," ABC Corp. would need to enter into a contract with its vendors that specifies the purposes for which the personal information is being provided and contains restrictions on what the vendors can do with the personal information. The contract should prohibit the vendors from selling the personal information, using it for any purpose other than providing the contracted services, and retaining, using, or disclosing it for any purpose outside of the contract's scope, including retaining, using, or disclosing the information for a commercial purpose other than providing the services specified in the contract.
C. Enter into a contract with the vendors containing restrictions on what they can do with the personal information.
I agree that C is the right answer
I would go with C. See study text, 6.1.4 Sale, fourth paragraph.
Sale is related to monetary consideration. That's why I think B is the correct.