CCPA Service Provider Agreement Template

Your legal team handed you a vendor contract. Your TPRM platform flagged it as processing California resident data. Now you need CCPA-compliant language before Friday's procurement deadline.

The California Consumer Privacy Act mandates specific contractual requirements when sharing personal information with service providers. Without proper agreements, you face statutory damages of $100-$750 per consumer per incident, plus actual damages and injunctive relief.

This template translates CCPA's dense statutory language into operational controls you can map directly to your vendor risk assessments. Each section includes evidence requirements, control references, and practical implementation notes based on enforcement actions and regulatory guidance.

Core CCPA Service Provider Requirements

The CCPA defines a "service provider" under California Civil Code Section 1798.140(v) as an entity processing personal information on behalf of a business pursuant to a written contract. Your agreement must include five mandatory elements:

1. Limited Use Restrictions

Contract Language Required: "Service Provider shall not sell, retain, use, or disclose personal information for any purpose other than performing the services specified in this Agreement."

Evidence Collection Points:

• Data flow diagrams showing processing boundaries
• Access control matrices limiting data exposure
• Quarterly attestations of compliance

Control Mapping:

• SOC 2 CC1.4 (Communication of Objectives)
• ISO 27001 A.13.2.1 (Information Transfer Policies)
• NIST 800-53 AC-4 (Information Flow Enforcement)

2. Business Purpose Specification

Document exactly which CCPA business purposes justify data sharing:

• Performing services (e.g., processing transactions, customer service)
• Detecting security incidents and protecting against fraud
• Debugging to identify and repair errors
• Internal research for technological development

Risk Tier Adjustments:

• Tier 1 (Critical): Monthly purpose validation reviews
• Tier 2 (High): Quarterly reviews with annual attestation
• Tier 3 (Medium): Annual certification sufficient

3. Subprocessor Restrictions

Required Provisions:

Service Provider shall not subcontract any processing without:
a) Prior written consent from Business
b) Flow-down of all CCPA obligations
c) Joint and several liability for subprocessor violations

DDQ Evidence Requirements:

• Complete subprocessor list with data access levels
• Subprocessor agreements demonstrating CCPA flow-down
• Change management procedures for adding subprocessors

4. Security Requirements

CCPA requires "reasonable security procedures and practices appropriate to the nature of the information." Translate this into measurable controls:

Data Type	Minimum Security Controls	Evidence Required
SSN/Driver's License	Encryption at rest (AES-256), MFA, quarterly pen tests	SOC 2 Type II, penetration test reports
Financial Account Info	PCI DSS compliance, tokenization, access logs	PCI attestation, sample logs
Health Information	HIPAA safeguards if applicable, audit trails	HIPAA attestation, audit reports
General PII	TLS 1.2+, access controls, incident response plan	Security questionnaire, IR test results

5. Government Access Provisions

Post-Schrems II, include provisions addressing government data requests:

• Notification requirements for subpoenas or warrants
• Commitment to challenge overbroad requests
• Transparency reporting on government access

Industry-Specific Adaptations

Financial Services

Add provisions for:

• Gramm-Leach-Bliley Act alignment (15 U.S.C. §6802)
• Right to Financial Privacy Act considerations
• GLBA Safeguards Rule compliance (16 CFR Part 314)

Additional Evidence: FFIEC examination results, regulatory correspondence

Healthcare

Incorporate:

• HIPAA Business Associate Agreement elements
• 42 CFR Part 2 requirements for substance abuse records
• State medical privacy laws (e.g., CMIA for California)

Control Overlap: Map HIPAA Technical Safeguards (45 CFR §164.312) to CCPA security requirements

Technology/SaaS

Address:

• Multi-tenant architecture controls
• API security requirements
• Data portability and deletion capabilities

Risk Indicators: Shared infrastructure, offshore development, startup vendors

Implementation Best Practices

1. Contract Lifecycle Management

Build CCPA requirements into your vendor lifecycle:

Onboarding (Week 1-2):

• Legal review of service provider definition
• Data mapping to identify California residents
• Initial risk tier assignment

Ongoing Monitoring (Quarterly):

• Automated evidence collection via DDQ
• Control effectiveness testing
• Subprocessor change tracking

Annual Review:

• Full contract compliance audit
• Regulatory update incorporation
• Risk tier reassessment

2. Evidence Automation

Configure your GRC platform to track:

• Contract execution dates and versions
• Quarterly attestation completion
• Security assessment results
• Incident notification timeliness

3. Remediation Workflows

When vendors fail CCPA requirements:

Issue	Severity	Remediation Timeline	Escalation
Missing contract language	Critical	30 days	Legal + Procurement
Unauthorized data use	Critical	Immediate	Privacy Officer + Legal
Inadequate security	High	60 days	CISO + Vendor Management
Subprocessor non-compliance	Medium	90 days	Vendor Management

Common Implementation Mistakes

1. Treating CCPA as California-Only

Even if your business isn't in California, CCPA applies when you process California residents' data. Map data flows to identify exposure.

2. Copy-Paste Agreements

Generic templates miss industry nuances. A payment processor needs different provisions than a marketing platform.

3. Ignoring Existing Contracts

CCPA applies to pre-2020 contracts. Create amendments for legacy vendors or risk non-compliance.

4. Overlooking Employee Data

CCPA amendments now cover employee personal information. HR vendors need updated agreements.

5. Static Compliance

CPRA expanded requirements effective 2023. Annual contract reviews catch regulatory evolution.

Regulatory Alignment

Your CCPA Service Provider Agreement creates evidence for multiple frameworks:

SOC 2 Mapping:

• CC1.2: Board oversight → Contract approval process
• CC1.4: Communication → Purpose limitation clauses
• CC6.1: Logical access → Access control requirements
• CC7.2: System monitoring → Audit rights

ISO 27001 Mapping:

• A.13.1: Information transfer → Data flow restrictions
• A.15.1: Supplier relationships → Service provider definition
• A.15.2: Supplier service delivery → Performance monitoring
• A.18.1: Compliance review → Annual assessment requirements

GDPR Article 28 Overlap:

• Processing instructions → Purpose limitations
• Confidentiality obligations → Security requirements
• Audit rights → Compliance verification
• Subprocessor restrictions → Flow-down requirements

Frequently Asked Questions

Do I need a CCPA Service Provider Agreement if we already have a DPA for GDPR?

Yes, CCPA has unique requirements not covered by standard GDPR DPAs, including the prohibition on selling data and specific business purpose limitations. Use an amendment to add CCPA-specific terms.

What's the difference between a "service provider" and "third party" under CCPA?

Service providers process data on your behalf under written instructions. Third parties receive data for their own purposes. Misclassification triggers different obligations and potential liability.

How do I handle vendors who refuse to sign CCPA agreements?

Document the refusal and assess criticality. For Tier 1 vendors, escalate to legal and consider alternatives. For lower tiers, implement compensating controls like enhanced monitoring or data minimization.

Can I use the same agreement for CCPA and CPRA compliance?

Your CCPA agreement needs updates for CPRA, including provisions for sensitive personal information, retention limitations, and expanded audit rights effective January 1, 2023.

How often should I collect evidence that vendors comply with CCPA agreements?

Base frequency on risk tier: monthly for critical vendors processing sensitive data, quarterly for high-risk, and annually for standard-risk vendors. Automate collection through your DDQ process.

Do CCPA Service Provider Agreements apply to vendors outside California?

Yes, any vendor processing California residents' personal information needs a compliant agreement, regardless of their location. This includes offshore processors and cloud providers.