The California Consumer Privacy Act (CCPA) does not explicitly use the factor of "Processing in Context of Local Establishment" to determine its applicability. Instead, it focuses on the definition of a "business" to establish its scope.

Text of Relevant Provisions

CCPA Sec.1798.140 (d)(2):

"(d) "Business" means:

(2) Any entity that controls or is controlled by a business, as defined in paragraph (1), and that shares common branding with the business and with whom the business shares consumers' personal information. "Control" or "controlled" means ownership of, or the power to vote, more than 50 percent of the outstanding shares of any class of voting security of a business; control in any manner over the election of a majority of the directors, or of individuals exercising similar functions; or the power to exercise a controlling influence over the management of a company. "Common branding" means a shared name, servicemark, or trademark that the average consumer would understand that two or more entities are commonly owned."

Analysis of Provisions

The CCPA does not directly address the concept of "Processing in Context of Local Establishment" as described in the generic definition provided. Instead, it focuses on the relationship between entities and their control structure to determine whether an entity falls under the definition of a "business" and thus is subject to the CCPA.

The provision extends the definition of a "business" to include entities that:

1. Control or are controlled by a business already covered by the CCPA
2. Share common branding with that business
3. Share consumers' personal information with that business

This approach differs from the concept of "local establishment" in that it doesn't specifically consider the physical location of the entity or its processing activities. Instead, it focuses on the corporate structure, branding, and data sharing practices.

The definition of "control" is broad, encompassing:

• Ownership or voting power of more than 50% of shares
• Control over the election of a majority of directors or similar individuals
• Power to exercise a controlling influence over the company's management

"Common branding" is defined as a shared name, servicemark, or trademark that would lead an average consumer to understand that the entities are commonly owned.

Implications

This provision has several implications for businesses:

1. Corporate structure: Companies must carefully consider their corporate structure and relationships with other entities. Even if a company itself doesn't meet the primary criteria for a "business" under the CCPA, it may still be subject to the law if it's controlled by or controls a covered business.
2. Branding strategies: The use of common branding becomes a significant factor. Companies that share branding with CCPA-covered businesses may find themselves subject to the law, even if they wouldn't be otherwise.
3. Data sharing practices: The sharing of consumers' personal information between related entities can bring an otherwise exempt entity under the CCPA's purview.
4. Extraterritorial reach: While not explicitly addressing processing outside of California, this provision could potentially extend the CCPA's reach to entities outside of California or even outside of the United States, if they meet the criteria of controlling, being controlled by, or sharing branding with a covered business.
5. Group-wide compliance: For corporate groups, this provision may necessitate a group-wide approach to CCPA compliance, as the actions of one entity could impact the obligations of related entities.
6. Consumer perception: The focus on "common branding" as perceived by the average consumer means that businesses need to consider not just their legal structure, but also how their brand relationships are perceived by the public.