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CCPA compliance for small e-commerce — do I actually need to worry?

Started by ShopifyFounder_LA · Dec 5, 2024 · 9 replies
For informational purposes only. Not legal advice.
SF
ShopifyFounder_LA OP

I run a small DTC brand on Shopify. About $600K/year revenue, maybe 8,000 customers. Based in LA.

I keep seeing CCPA requirements everywhere but when I look at the thresholds I think I'm exempt? The law says you need $25M+ revenue OR 100,000+ consumers OR 50%+ revenue from selling data. I'm none of those.

But then I see privacy lawyers saying "every California business needs to comply." Who's right?

PC
PrivacyCounsel_CA Attorney

You're reading the statute correctly. CCPA (now CPRA) has those three thresholds and you need to meet at least one to be a "business" under the law with full compliance obligations.

At $600K and 8K customers, you're likely exempt from the core CCPA requirements.

BUT — two caveats:

  • If you share customer data with third parties in ways that could be "selling" under CCPA's broad definition (including for advertising), you could hit the 50% threshold faster than you think.
  • The California AG has signaled they're considering lowering thresholds. And other states have different rules.
SF
ShopifyFounder_LA OP

I use Meta ads and Google Ads. I have the Facebook Pixel on my site. Does that count as "selling" data?

PC
PrivacyCounsel_CA Attorney

Under CPRA, "sharing" personal information for cross-context behavioral advertising (which is what Meta Pixel does) triggers opt-out requirements even if no money changes hands. But that only matters if you're a "business" under the statute in the first place.

You don't derive 50%+ of revenue from selling data — you spend money on ads, not earn it. So that threshold doesn't apply to you.

EC
EcommerceOps_SD

Same situation here. $400K revenue, Shopify store. I added a privacy policy and cookie banner anyway because:

1. It's cheap insurance if the rules change
2. Enterprise customers ask about it during B2B deals
3. App Store Review guidelines require privacy policies even for small apps

Cost me maybe $500 for a lawyer to review a template privacy policy. Worth the peace of mind.

DD
DTCDan

The 100,000 consumer threshold is easier to hit than you'd think. That's "consumers" not "customers" — meaning anyone whose personal info you collect. Every website visitor who accepts cookies, everyone on your email list, everyone who abandons a cart. Tracked over a calendar year.

With 8K customers you might have 80K+ visitors. Check your analytics.

SF
ShopifyFounder_LA OP

@DTCDan — just checked. About 120K unique visitors in the past year. So I might actually hit the threshold...

PC
PrivacyCounsel_CA Attorney

Good catch. The 100K threshold is consumers, households, or devices whose personal information you buy, sell, or share. Key question: are those 120K visitors California residents? CCPA only covers CA consumers.

If you don't collect location data, you'd need to estimate based on traffic patterns. Generally 12% of US online traffic is California, so 120K visitors might be ~15K California consumers — probably still under the threshold.

But you're close enough that I'd recommend basic compliance: privacy policy disclosing your data practices, "Do Not Sell/Share" link (even if just to be safe), and honoring opt-out requests.

SF
ShopifyFounder_LA OP

UPDATE: Decided to implement basic compliance even though I'm probably under the threshold. Using Shopify's built-in cookie banner and updated my privacy policy. If I keep growing I'll need this anyway.

Thanks for the detailed breakdown — the "consumers vs customers" distinction is something I definitely would have missed.

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