Question 4
UnclassifiedUnder California law, what is the basic difference between a 'sale' and 'sharing' of personal information?
Correct answer: B
Explanation
Under the California Consumer Privacy Act, a “sale” is a disclosure of personal information for “valuable consideration,” while “sharing” is a separate concept tied to disclosures for “cross-context behavioral advertising.” The distinction is that sale turns on consideration, whereas sharing turns on the advertising use of the disclosure.
Why each option is right or wrong
A. A sale involves money and sharing involves only free disclosures
B. A sale involves disclosure for valuable consideration, while sharing focuses on certain cross-context behavioral advertising disclosures
Civil Code § 1798.140(ah)(1) defines a “sale” as selling, renting, releasing, disclosing, disseminating, making available, transferring, or otherwise communicating personal information to another business or third party for “monetary or other valuable consideration.” By contrast, Civil Code § 1798.140(ah)(1)(A) excludes from that definition disclosures made for the purpose of cross-context behavioral advertising, which is separately addressed in the CCPA’s “sharing” framework at § 1798.140(ah)(1)(B).
C. Sharing applies only to employee data
D. There is no difference under California law