June 26, 2022

Volume XII, Number 177

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June 24, 2022

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Finding the Delta: Understanding the Differences in How State Privacy Laws Define Corporate Affiliates

All modern privacy statutes regulate when personal information can be shared with third parties, whether those third parties are service providers, vendors, contractors, or business partners. Most modern privacy statutes recognize, however, that privacy risks are reduced when the third party is related to the organization from which the data originates. As the following chart indicates, the statutes differ in terms of how they define corporate affiliates with some statutes focusing solely on ownership structure while other statutes consider the use of common branding.

Requirements to be considered an affiliate

Cali-fornia 2022

CCPA

Cali-fornia 2023

CPRA

Virginia 2023

VCDPA

Colorado 2023

CPA

Utah 2023

UCPA

Connect-icut 2023

CTCPA

Is common branding required in all instances?

✔[1]

Is common branding sufficient unto itself?

✔[2]

✔[3]

✔[4]

Is common control required in all instances?

✔[5]

✔[6]

✔[7]

Is common control sufficient unto itself?

✔[8]

✔[9]

✔[10]

✔[11]

Can control be evidenced by ownership of only 25% of voting shares

✔[12]

Unclear

[13]

Can control be evidenced by ownership of only 50% of voting shares

✔[14]

✔[15]

✔[16]

✔[17]

Unclear

[18]

✔[19]

Can control be evidenced by ability to appoint majority of directors?

✔[20]

✔[21]

✔[22]

✔[23]

Unclear

[24]

✔[25]

Can control be demonstrated by other evidence that indicates a power to influence the management of the company?

✔[26]

✔[27]

✔[28]

✔[29]

Unclear

[30]

✔[31]


[1] Cal. Civ. Code § 1798.140(d)(2) (West 2021).

[2] Va. Code § 59.1-571 (2021).

[3] Utah Code Ann. 13-61-101(2) (2022).

[4] Conn. Sub. Bill No. 6, § 1(1) (enacted by legislature on April 28, 2022).

[5] Cal. Civ. Code § 1798.140(d)(2) (West 2021).

[6] Cal. Civ. Code § 1798.140(d)(2) (West 2021).

[7] C.R.S. § 6-1-1303(1) (2021).

[8] Va. Code § 59.1-571 (2021).

[9] C.R.S. § 6-1-1303(1) (2021).

[10] Utah Code Ann. 13-61-101(2) (2022).

[11] Conn. Sub. Bill No. 6, § 1(1) (enacted by legislature on April 28, 2022).

[12] C.R.S. § 6-1-1303(1) (2021).

[13] Statute does not define “common control.”

[14] Cal. Civ. Code § 1798.140(d)(2) (West 2021).

[15] Cal. Civ. Code § 1798.140(d)(2) (West 2021).

[16] Va. Code § 59.1-571 (2021).

[17] C.R.S. § 6-1-1303(1) (2021).

[18] Statute does not define “common control.”

[19] Conn. Sub. Bill No. 6, § 1(1) (enacted by legislature on April 28, 2022).

[20] Cal. Civ. Code § 1798.140(d)(2) (West 2021).

[21] Cal. Civ. Code § 1798.140(d)(2) (West 2021).

[22] Va. Code § 59.1-571 (2021).

[23] C.R.S. § 6-1-1303(1) (2021).

[24] Statute does not define “common control.”

[25] Conn. Sub. Bill No. 6, § 1(1) (enacted by legislature on April 28, 2022).

[26] Cal. Civ. Code § 1798.140(d)(2) (West 2021).

[27] Cal. Civ. Code § 1798.140(d)(2) (West 2021).

[28] Va. Code § 59.1-571 (2021).

[29] C.R.S. § 6-1-1303(1) (2021).

[30] Statute does not define “common control.”

[31] Conn. Sub. Bill No. 6, § 1(1) (enacted by legislature on April 28, 2022).

©2022 Greenberg Traurig, LLP. All rights reserved. National Law Review, Volume XII, Number 138
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About this Author

David A. Zetoony Privacy Attorney Greenberg Traurig
Shareholder

David Zetoony, Co-Chair of the firm's U.S. Data, Privacy and Cybersecurity Practice, focuses on helping businesses navigate data privacy and cyber security laws from a practical standpoint. David has helped hundreds of companies establish and maintain ongoing privacy and security programs, and he has defended corporate privacy and security practices in investigations initiated by the Federal Trade Commission, and other data privacy and security regulatory agencies around the world, as well as in class action litigation. 

David receives regular recognitions from clients and peers for...

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