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Simplify CCPA Compliance in Service Provider Contracts with Contract Management Software

Many lawyers need help to comply with the California Consumer Privacy Act (CCPA). “I have to update thousands of service provider contracts to address data privacy issues,” they say, “but where do I start?”

As we discussed in What to Do About CCPA: 3 Steps to Compliance, the CCPA, the General Data Protection Regulations (GDPR), and other data privacy regulations continually change how organizations handle the storage, sharing, and use of personal information. You may need to review and revise hundreds, even thousands of existing agreements with third parties such as service providers to include contract language that meets CCPA requirements. You may also need to ensure future contracts comply with CCPA.

Parley Pro Contract Management Software (CMS) allows you to organize, analyze, and monitor your contracts in ways that simplify CCPA compliance now and ease data privacy compliance in the future.

1. Complying with CCPA: Contracts for Existing Relationships

Attempting to manually revise numerous clauses that discuss personal data in existing contracts is daunting. One of the simplest ways to ease CCPA compliance is to update existing contracts through an addendum that includes CCPA-compliant language. We address potential language to include below.

Once you finalize your addendum language, CMS can automatically send the addendum to all your service providers. There’s no need to switch to your email software and create a separate line of communication to track. Business partners also appreciate the straightforward, intuitive review and approval processes when working within CMS platforms. 

You can also toss aside the tedious checklists and spreadsheets for manually tracking contracting tasks. CMS sends notifications, tracks progress, and stores all communications in one place, resulting in an easy-to-find defensible audit trail for contract and addendum approval, from start to finish. 

2. Complying with CCPA: Contracts for Future Service Provider Relationships

Also, consider how you’ll include the elements required by CCPA into your contract templates. Doing so will ensure that going forward, contracts that outline new service provider relationships are CCPA compliant from the start.

Here again, CMS eases the completion of time-consuming, error-prone manual activities. Easily edit contract and clause templates stored within CMS libraries. CMS sifts through mountains of contract language, pinpoints specific issues, and populates changes with speed and accuracy unmatched by human efforts.

Adding Contract Language that Meets CCPA Requirements

The contract addendums you create to comply with CCPA and any contract templates used for future contracts should state that a service provider: 

  1. Is prohibited from (1) selling personal information and (2) retaining, using or disclosing personal information for any purpose other than the specific purpose(s) of performing the services specified in the contract, outside of the direct business relationship between the service provider and the business, or as otherwise permitted by the CCPA.
  2. Is instructed not to further collect, sell, or use the personal information of the consumer except as necessary to perform the business purpose.
  3. Certifies that it understands the restrictions of being a service provider and will comply with them.

Consider Additional Data Protection Language

Senior executives are taking the initiative now to strengthen their overall approach to data privacy compliance. One tactic to maximize your efforts now is to add contract language that meets shared similarities in the CCPA and the GDPR. Regulators often look to the EU’s GDPR to serve as a model for many future regulations. Adding strong data privacy protection language now prepares you to more easily meet potential future regulations.

3.  Create a Contract Negotiation Company Playbook

You’ll likely find that as more attention is paid to data privacy and digital security, some service providers will want to negotiate changes to your template language. 

Negotiations don’t need to consume your time and effort when you have a “company playbook” that you, junior attorneys, and company executives can consult. A playbook can explain why terms and clauses exist. It can offer fallback positions that a company will accept and outline conditions that are unacceptable.

Including one or more alternate clauses for each clause in your CCPA-compliant addendum and offering an explanation of why certain language is required such as brings many advantages including: 

  • Reducing conflict and improving clarity of your position with business partners
  • Allowing executives to better understand your goals and handle some basic negotiations on their own.
  • Reducing the often costly need for attorneys to repeatedly review and revise the same contract language.

Control & Insight for CCPA & Data Privacy Compliance

It’s grown impossible to manually keep up with massive numbers of contracts and the constant flux in regulations. There are simply too many contracts to review, too many activities to track, and too many changes to handle without it. Using a CMS platform gives you the control and insight you need to supervise the simplification of data privacy compliance. Contact Parley Pro today to see how you can more easily meet CCPA requirements and achieve core business objectives through proactive collaboration, efficient automation, and AI-driven insights.


DISCLAIMER: This article is for informational purposes only. It is not intended as a substitute for professional legal advice. Parley Pro is not a law firm and cannot provide advice, explanations, opinions, or recommendations about legal rights, remedies, defenses, options, selection of forms, or strategies. Our goal is to show you how Parley Pro can help you in your adventures with contracts.

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