CIPP/US Study Guide
Chapter 6: State Comprehensive Privacy Laws

Defining Business - Applicability Thresholds

Which companies are covered turns on the definition of business (called controller in the four non-California states). California is broadest ($25M revenue alone triggers coverage); the threshold structures differ sharply by state, with Utah requiring $25M revenue PLUS a processing threshold.

California uses the term business / controller|business; the other four states use controller. California is broadest: a company doing business in California with $25 million in total annual gross revenue is subject to the law regardless of type.

How each state's business/controller threshold is structured
StateConsumer-count triggerRevenue-from-data triggerStandalone revenue trigger
California100,000 consumersDerives at least 50% of gross revenue from selling OR sharing data$25M annual gross revenue alone
Colorado25,000 consumers AND any revenue or discount from selling data(coupled with consumer count)None
Connecticut25,000 consumers (excludes payment transactions) AND at least 25% of gross revenue from selling data(coupled with consumer count)None
Virginia25,000 consumers AND at least 50% of gross revenue from selling data(coupled with consumer count)None
Utah$25M revenue AND (100,000 consumers OR 25,000 consumers + 50% of gross revenue from selling data)(coupled, see consumer column)None - revenue alone is never enough
Three traps in these thresholds

1) California includes both selling AND sharing in its 50% revenue test; Colorado, Connecticut, Virginia look only at selling. 2) Connecticut excludes payment transactions from its 100,000-consumer count. 3) Utah is the only state where revenue alone ($25M) is never sufficient - it must be combined with a processing threshold.

100,000 vs 25,000

California, Colorado, Connecticut, and Virginia share a 100,000-consumer standalone-style processing trigger; Colorado, Connecticut, and Virginia each use 25,000 consumers when coupled with a selling-revenue test.

Key terms - quick answers

What is “Business / Controller”?
The entity that conducts business in a state and is subject to the law; California uses business, the other four states use controller.
What is “Processing threshold”?
A threshold that triggers coverage based on the number of in-state consumers whose data is processed.