QuestionQ232

State Privacy Laws

Your company intends to obtain from a third-party AdTech company a marketing list containing consumers’ personal information—including names, emails, and IP addresses. The AdTech company has masked and tokenized the personal information in that list.

Under which of the following circumstances would obtaining the data from the AdTech company not be treated as a sale of personal information under the California Privacy Rights Act?

  • A If masked and tokenized data elements are not considered personal information in the statute's definition of the term sale
  • B If the purchase agreement terms state that the transfer of the personal information to your company is not a sale
  • C If the data is transferred in connection with your company's acquisition of the AdTech company
  • D If the data is not shared electronically
Explanation

California Civil Code § 1798.140 provides that a business does not sell personal information when it transfers that information as an asset in a merger, acquisition, bankruptcy, or similar transaction in which the transferee assumes control of all or part of the business, provided the information is used or shared consistently with the statute. Masking or tokenization does not by itself make consumer identifiers nonpersonal information, and neither a contractual label nor the transfer medium changes the statutory definition of a sale.

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