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Can I offer a loyalty program for my customers in California? What are the requirements?

Loyalty Programs in California: Requirements and Restrictions

Yes, you can offer a loyalty program for your customers in California, but you must comply with the California Consumer Privacy Act (CCPA) [1][4][5]. The CCPA is a privacy law that regulates how businesses collect, use, and disclose personal information of California residents.

Under the CCPA, a loyalty program is considered a “financial incentive” [4]. A financial incentive is a program, benefit, or other offering, including payments to consumers, related to the collection, retention, or sale of personal information [1].

To offer a loyalty program in California, you must comply with the following requirements and restrictions:

  1. You must provide a notice to consumers that explains the financial incentive or loyalty program, including the categories of personal information that will be collected, the purposes for which the personal information will be used, and the value of the financial incentive or loyalty program [1][4].
  2. You must obtain the consumer’s opt-in consent to participate in the financial incentive or loyalty program [1][4].
  3. You must provide consumers with the right to withdraw from the financial incentive or loyalty program at any time [1][4].
  4. You must ensure that the financial incentive or loyalty program is not unjust, unreasonable, coercive, or usurious in nature [1][4].
  5. You must ensure that the financial incentive or loyalty program does not involve the sale of personal information [1][4].
  6. You must ensure that the financial incentive or loyalty program does not discriminate against consumers who exercise their privacy rights [1][4].

In summary, you can offer a loyalty program for your customers in California, but you must comply with the CCPA requirements and restrictions. You must provide a notice, obtain opt-in consent, provide the right to withdraw, ensure the program is not unjust or discriminatory, and does not involve the sale of personal information.

I hope this helps! Let me know if you have any further questions.

Source(s):
Jurisdiction

California