What is a 'Sale' in CCPA?

The California Consumer Privacy Act (CCPA) establishes a broad definition of “sale” in the context of consumer personal information. According to the statute, a sale is any act of “selling, renting, releasing, disclosing, disseminating, making available, transferring, or otherwise communicating” a consumer’s personal information to another business or third party “for monetary or other valuable consideration” (Cal. Civ. Code § 1798.140(t)(1)). The statutory language notably expands beyond traditional notions of sale, encompassing any transfer or sharing in exchange for value, including non-monetary benefits.

Analysis of the statutory language reveals several key points:

• The term “sale” includes transfers where consideration is not necessarily monetary but may be “other valuable consideration.”
• The recipient—deemed a “third party”—is any entity other than the collecting business itself.
• The law does not restrict “sale” to direct transactions; it covers indirect transfers and disclosures as well.

The lack of explicit definition for “consideration” within CCPA leaves its interpretation dependent on general contract law principles and the California Civil Code. This ambiguity has led to divergent implementations and risk assessments among businesses, particularly regarding digital advertising and analytics service providers.

Empirical review of compliance practices demonstrates the following:

• Many businesses interpret sharing data with advertising networks or data brokers as a “sale,” given the exchange of user data for access to marketing tools or analytics, even if no direct payment is involved.
• Legal counsel often advise erring on the side of providing opt-out mechanisms when there is any exchange of value associated with information sharing.
• The CCPA requires that businesses offer consumers a clear right to opt out of these sales, most visibly through a “Do Not Sell My Personal Information” link or equivalent mechanism (Cal. Civ. Code § 1798.135(a)(1)).

Stakeholder responses have included:

• Implementation of dedicated opt-out web pages and cookie banners.
• Increased contractual scrutiny with third parties regarding use and onward transfer of personal information.
• Enhanced internal tracking of data flows to identify instances that may qualify as a sale under the CCPA’s definition.

Overall, the CCPA’s definition of sale extends to numerous common data practices that involve third-party access, regardless of whether direct payments are made. The statutory emphasis on consumer choice through required opt-out mechanisms has materially impacted business operations and privacy compliance strategies. As judicial and regulatory interpretations evolve, the scope of what constitutes a sale under the CCPA remains an area of active legal development.