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ARTICLE · 15 FEBRUARY 2022

California AG Sweeps Business Loyalty Programs For CCPA Noncompliance

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On January 28, 2022, the California Attorney General (AG) announced an "investigative sweep" of businesses operating loyalty programs in the state, which it launched by sending multiple businesses...

United StatesPrivacy
Natasha Kohne
Natasha Kohne
Michelle Reed
Michelle Reed
Melissa D. Whitaker
Melissa D. Whitaker
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On January 28, 2022, the California Attorney General (AG) announced an “investigative sweep” of businesses operating loyalty programs in the state, which it launched by sending multiple businesses notice of noncompliance with the California Consumer Privacy Act (CCPA). According to the AG's  press release, recipients included major corporations in retail, travel, home improvement and food services industries. These businesses will now have 30 days to cure the alleged CCPA violations or face enforcement action.1

The Financial Incentive Rule

Loyalty programs have exploded in popularity as a means of lawfully obtaining personal information from willing consumers, but for companies operating in California, this means that these programs are also subject to the CCPA. The CCPA requires these businesses to give consumers notice of the material terms of the financial incentives program, including information about discounts or other benefits provided in exchange for the

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