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ARTICLE · 24 FEBRUARY 2022

California AG Takes Aim At Customer Loyalty Programs

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Did your business receive a letter from the California Attorney General's office about your loyalty program? You are not alone.

United StatesPrivacy
Wynter Deagle
Wynter Deagle
Anne-Marie Dao
Anne-Marie Dao
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Did your business receive a letter from the California Attorney General's office about your loyalty program? You are not alone. The California AG celebrated Data Privacy Day last month by announcing that his office had conducted an "investigative sweep" of business operating loyalty programs in California. His office then sent out notices of non-compliance to several loyalty program operators.

In general, loyalty programs give customers who enroll incentives, rewards or discounts. The business then tracks the products purchased or the dollars spent by each program member. The California Consumer Protection Act (CCPA) requires that programs that provide "financial incentives" (i.e., promotions, discounts, and deals in exchange for personal information) must provide a notice of financial incentive. More about CCPA requirements and applicability can be found here.

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