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AB-846 Customer loyalty programs.(2019-2020)

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Date Published: 02/20/2019 09:00 PM
AB846:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill No. 846


Introduced by Assembly Members Burke, Low, and Mullin

February 20, 2019


An act relating to consumer privacy.


LEGISLATIVE COUNSEL'S DIGEST


AB 846, as introduced, Burke. Customer loyalty programs.
Existing law, the California Consumer Privacy Act of 2018, beginning on January 1, 2020, grants a consumer various rights with regard to personal information relating to that consumer that is held by a business. The act prohibits a business from discriminating against the consumer for exercising any of the consumer’s rights under the act, except if the differential treatment is reasonably related to value provided by the consumer’s data.
This bill would express the intent of the Legislature to enact legislation that would clarify that the California Consumer Privacy Act of 2018 does not prohibit a consumer from choosing to participate in a customer loyalty program that offers incentives such as rewards, gift cards or certificates, discounts, or other benefits and would further clarify that a business that offers a customer loyalty program may continue to offer rewards, gift cards or certificates, discounts, or other benefits associated with a customer loyalty program in a manner that is reasonably anticipated within the context of a business’s ongoing relationship with a consumer.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 (a) The Legislature finds and declares that California consumers enjoy the benefits and convenience of customer loyalty programs. Studies show all of the following:
(1) Eighty percent of adults belong to some type of customer loyalty program.
(2) Customer loyalty program membership increased by 15 percent between 2015 and 2017.
(3) Eighty-seven percent of customer loyalty program members say they are open to sharing personal information about their activity and behavior in order to receive more personalized rewards.
(b) It is the intent of the Legislature to enact legislation that would clarify that the California Consumer Privacy Act of 2018 does not prohibit a consumer from choosing to participate in a customer loyalty program that offers incentives such as rewards, gift cards or certificates, discounts, or other benefits and would further clarify that a business that offers a customer loyalty program may continue to offer rewards, gift cards or certificates, discounts, or other benefits associated with a customer loyalty program in a manner that is reasonably anticipated within the context of a business’s ongoing relationship with a consumer.