What the law says
The definition
Business & Professions Code § 22625(g) defines a "large private business" as a business with more than $500,000,000 in gross annual revenue nationally that provides goods and services to customers.
What the law says
Three elements to look at
Read together with the other definitions in § 22625, coverage turns on:
- Revenue: more than $500 million in gross annual revenue, measured nationally — not just California revenue (§ 22625(g)).
- Customers: "customer" means a natural person residing in California, based on the address associated with the customer's account (§ 22625(b)).
- Goods and services: "services" are services a customer pays for (one-time, subscription, fee, or recurring). Free options or services are excluded, even if upgrades are available later (§ 22625(j)).
What the law says
Exemptions to check
Even a business meeting the revenue threshold should review the exemptions in § 22628(g). Each is limited to its terms, and none exempts a business from other law (§ 22629):
- Services subject to, and in compliance with, CPUC General Order 133 (telecommunications) or General Order 103-A (water), and any corrective action plan (§ 22628(g)(1)).
- Exclusive business lines, as defined in § 22625(e) (§ 22628(g)(2)).
- Hospitals, as defined in § 22625(f), only when communications relate to health care services as listed in the statute (§ 22628(g)(3)).
- Consumer reporting agencies as defined in the federal Fair Credit Reporting Act (§ 22628(g)(4)).
Our interpretation
Confirm with counsel
This guide summarizes the statutory text. How revenue is calculated for corporate groups, and how specific business lines fit the definitions, are questions to confirm with counsel.