Luma AI · Luma AI Privacy Policy · View original document ↗

Business Transfer Clause

Medium severity High confidence Explicitdocumentlanguage Rare · 1 of 343 platforms
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Document Record

What it is

If Luma is sold, merges with another company, or goes through bankruptcy, your personal information may be transferred to the new owner as part of that transaction.

This analysis describes what Luma AI's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

Your personal data could end up under the control of a different company with different privacy practices, potentially without prior notice or the opportunity to opt out.

Change history

modified Jun 10, 2026

Text is identical; provision retained with no changes.

View full change record →

Consumer impact (what this means for users)

In the event of a merger, acquisition, or bankruptcy, your personal information, including uploaded images, videos, and conversation history, may be transferred to a new entity whose privacy practices may differ from Luma's. This is a standard industry clause but has practical implications for users who upload sensitive content.

How other platforms handle this

Character.AI Medium

We may disclose certain information, in connection with or during negotiations or closing of any merger, sale of company assets, financing, or acquisition of all or a portion of our business to another company.

Discord Medium

We may share your information in connection with, or during negotiations of, any merger, sale of company assets, financing, acquisition, or dissolution, transaction, or proceeding involving all or a portion of our business.

MetaMask Medium

We may share your personal information with our affiliates, meaning entities that control, are controlled by, or are under common control with Consensys. We also share information with service providers who assist in operating our services, subject to confidentiality obligations.

See all platforms with this clause type →

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▸ View Original Clause Language DOCUMENT RECORD
"
Business transfers. We may sell, transfer or otherwise share some or all of our business or assets, including your personal information, in connection with a business transaction (or potential business transaction) such as a corporate divestiture, merger, consolidation, acquisition, reorganization or sale of assets, or in the event of bankruptcy or dissolution.

— Excerpt from Luma AI's Luma AI Privacy Policy

ConductAtlas Analysis

Institutional analysis (Compliance & governance intelligence)

REGULATORY LANDSCAPE: Business transfer clauses engage GDPR Article 6 (lawful basis for processing) and may require assessment of whether the transfer to a new controller requires fresh consent or updated transparency notices. Under CCPA, a business transfer may qualify as a sale of personal information depending on the structure of the transaction and applicable regulatory interpretation. The FTC Act is relevant if post-transfer data use materially deviates from original representations. GOVERNANCE EXPOSURE: Medium. This is a standard clause across the industry, but its application to AI training data, user-uploaded images, and conversation histories gives it particular weight given the sensitivity and volume of data Luma may hold. The policy does not commit to notifying users prior to a transfer or providing an opt-out at the time of transfer. JURISDICTION FLAGS: GDPR imposes obligations on the new controller following a transfer to maintain lawful processing; EU users may have rights to object or request deletion if the new controller's purposes differ materially. California users may have CCPA rights depending on how the transaction is structured. Cross-border transfers in the event of an acquisition by a non-EEA entity would engage GDPR Chapter V transfer mechanisms. CONTRACT AND VENDOR IMPLICATIONS: Enterprise customers should assess whether their data processing agreements with Luma address change-of-control scenarios and whether sub-processor notifications are required in the event of a business transfer. Contractual data localization or processing restrictions may be affected. COMPLIANCE CONSIDERATIONS: Legal teams should evaluate whether a business transfer would trigger notification obligations to regulators or users under applicable law, and whether the incoming entity would need to execute a new data processing agreement with enterprise customers. Data mapping should account for the possibility that data may migrate to a new controller.

Full compliance analysis

Regulatory citations, enforcement risk, and due diligence action items.

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Applicable agencies

  • FTC
    The FTC has historically scrutinized post-acquisition changes in data practices and may be relevant if a business transfer results in materially different data use than what users were originally told.
    File a complaint →

Applicable regulations

CCPA/CPRA
California, USA
Connecticut Data Privacy Act Amendments
US-CT
FTC Act Section 5
United States Federal
GDPR
European Union
Indiana Consumer Data Protection Act
US-IN
Kentucky Consumer Data Protection Act
US-KY
Universal Opt-Out Mechanism Expansion 2026
US

Provision details

Document information
Document
Luma AI Privacy Policy
Entity
Luma AI
Document last updated
May 5, 2026
Tracking information
First tracked
May 10, 2026
Last verified
May 10, 2026
Record ID
CA-P-009638
Document ID
CA-D-00497
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
6b82cdbfd54f761eeed99a77810eb14dd07a0dbf17a465726af4f6edc82cd38f
Analysis generated
May 10, 2026 20:49 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Luma AI
Document: Luma AI Privacy Policy
Record ID: CA-P-009638
Captured: 2026-05-10 20:49:39 UTC
SHA-256: 6b82cdbfd54f761e…
URL: https://conductatlas.com/platform/luma-ai/luma-ai-privacy-policy/business-transfer-clause/
Accessed: June 29, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
Medium
Categories

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Frequently Asked Questions

What does Luma AI's Business Transfer Clause clause do?

Your personal data could end up under the control of a different company with different privacy practices, potentially without prior notice or the opportunity to opt out.

How does this clause affect you?

In the event of a merger, acquisition, or bankruptcy, your personal information, including uploaded images, videos, and conversation history, may be transferred to a new entity whose privacy practices may differ from Luma's. This is a standard industry clause but has practical implications for users who upload sensitive content.

How many platforms have this type of clause?

ConductAtlas has identified this type of provision across 1 platforms. See the full comparison.

Is ConductAtlas affiliated with Luma AI?

No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Luma AI.