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Exam CIPP-US topic 1 question 166 discussion

Actual exam question from IAPP's CIPP-US
Question #: 166
Topic #: 1
[All CIPP-US Questions]

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?

  • A. Register its transfer of personal information with the California Attorney General's office.
  • B. Ensure that it does not receive any monetary consideration from the vendors for the personal information.
  • C. Enter into a contract with the vendors containing restrictions on what they can do with the personal information.
  • D. State in its privacy policy that it will only transfer the personal information to vendors who provide the business with certain services.
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Suggested Answer: C 🗳️
by Romeokton at Feb. 5, 2024, 3:22 p.m.

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Bhimesh
5 months ago
Selected Answer: C
C. Enter into a contract with the vendors containing restrictions on what they can do with the personal information.
upvoted 1 times
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fdnsup
5 months, 2 weeks ago
I agree that C is the right answer
upvoted 1 times
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Stevenciu
5 months, 3 weeks ago
Selected Answer: C
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.
upvoted 3 times
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Buki007
7 months ago
I would go with C. See study text, 6.1.4 Sale, fourth paragraph.
upvoted 1 times
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Romeokton
7 months, 1 week ago
Selected Answer: B
Sale is related to monetary consideration. That's why I think B is the correct.
upvoted 1 times
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