
Keypoint: Starting in 2023, organizations that are subject to one or more of the laws will need to enter into contracts with recipients of personal information/data that address numerous statutory requirements.
This is the eighth article in our ten-part weekly series comparing key provisions of the California Privacy Rights Act (CPRA), Colorado Privacy Act (CPA), and Virginia Consumer Data Protection Act (VCDPA). With the operative dates of these laws drawing near, we are exploring important distinctions between them. If you are not already subscribed to our blog, consider subscribing now to stay updated.
In this article, we examine how the three laws treat data processing agreements (DPAs). The CPRA, VCDPA and CPA require, in certain situations, businesses/controllers to enter into contracts with entities to whom they transfer personal information. The CPRA establishes three categories of recipients – service providers, contractors, and third parties – and sets forth a baseline set of requirements that must be contractually addressed when businesses sell or share personal information to a third party or disclose it to a service provider or contractor for a business purpose. The CPRA requires additional contractual provisions when the transfers are made to service providers or contractors.
In comparison, the VCDPA and CPA require contracts when a controller transfers personal data to processors. The VCDPA and CPA generally align their requirements although there are differences as discussed below. There also are many differences as compared to the CPRA’s requirements.