Business Purpose

Under CCPA, the use of personal information for operational purposes reasonably necessary and proportionate to achieve the operational purpose for which the data was collected or another operational purpose compatible with the context in which it was collected. Business purposes include service performance, security and fraud prevention, debugging, internal research, quality control, legal compliance, and other specified operational activities. The business purpose category matters because businesses can share personal information with service providers for business purposes without triggering 'sale' disclosure or opt-out requirements. However, the service provider must be contractually restricted to using data only for specified business purposes. The concept recognizes that certain data uses are necessary for basic business operations and don't involve monetization or third-party marketing. Organizations should clearly identify business purposes for data processing and ensure they align with consumer expectations and contractual restrictions.