Keypoint: With the CCPA’s “right to cure” violations expiring at the end of the year, businesses should take note of the AG’s recent enforcement efforts and, to the extent necessary, provide the requisite notice of financial incentive if the business offers discounts, free items, loyalty programs, or other rewards, in exchange for personal information.
California Attorney General Rob Bonta marked Data Privacy Day (January 28) by announcing an “investigative sweep of a number of businesses operating loyalty programs in California” for allegedly failing to comply with the California Consumer Privacy Act’s (CCPA) notice of financial incentive requirement. Letters were sent on January 28 “to major corporations in retail, home improvement, travel, and food services industries.” As required under the CCPA, entities that received letters will have thirty days to cure the alleged violation.
The press release did not disclose the number of letters sent or provide details on the specific nature of the alleged violations other than stating this “sweep of notices . . . focuses on businesses that are failing to provide a notice of financial incentive to customers that opt into their loyalty program.”
For businesses that offer loyalty programs or other financial incentives, below is a discussion on the CCPA’s notice of financial incentive requirement, including what the notices must contain and how businesses should relay the notices to California residents.Continue Reading Analyzing the CCPA’s Notice of Financial Incentive Requirement in the Wake of the Attorney General’s Issuance of Violation Notices for Loyalty Programs