Amended IN Assembly April 30, 2019 Amended IN Assembly April 12, 2019 Amended IN Assembly March 25, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 846Introduced by Assembly Members Burke, Low, and Mullin(Coauthors: Assembly Members Aguiar-Curry, Bonta, Fong, and Blanca Rubio)(Coauthors: Senators Morrell and Portantino)February 20, 2019An act to amend Section 1798.125 of the Civil Code, relating to consumer privacy.LEGISLATIVE COUNSEL'S DIGESTAB 846, as amended, 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. Among these rights, the act allows a consumer to opt out of having the consumers personal information sold to third parties by a business, and the act requires a business that sells a consumers personal information to third parties to give that consumer notice, as specified. The act prohibits a business from discriminating against the consumer for exercising any of the consumers rights under the act, except that a business may offer a different price, rate, level, or quality of goods or services to a consumer if the differential treatment is reasonably related to value provided to the consumer by the consumers data.The act authorizes a business to enter a consumer into a financial incentive program only if the consumer affirmatively consents, subject to revocation at any time by the consumer, to the material terms of the incentive program, and the act requires a business that offers a financial incentive to a consumer to notify the consumer of the financial incentive, as specified.The act further prohibits a business from using a financial incentive practice that is unjust, unreasonable, coercive, or usurious in nature.This bill would, instead, prohibit a business from discriminating against the consumer, by charging higher prices or providing a lower level of goods or services, for exercising any of the consumers rights under the act, except if the differential treatment is reasonably related to value provided to the business by the consumers data, is in connection with a consumers voluntary participation in a loyalty, rewards, premium features, discount, or club card program, as defined, or is in connection with a specific good or service whose functionality is reasonably directly related to the collection, use, or sale of the consumers data.The bill would also strike an inconsistent cross-reference as well as the consent and notification provisions related to a financial incentive program, as described above. The bill would also eliminate the prohibition against a business using a financial incentive practice that is unjust, unreasonable, coercive, or usurious in nature.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 1798.125 of the Civil Code is amended to read:1798.125. (a) (1) A business shall not discriminate against a consumer because the consumer exercised any of the consumers rights under this title, including, but not limited to, by:(A) Denying goods or services to the consumer.(B) Charging higher prices or rates for goods or services, including through the use of discounts or other benefits or imposing penalties.(C) Providing a lower level or quality of goods or services to the consumer.(D) Suggesting that the consumer will receive a different price or rate for goods or services or a different level or quality of goods or services.(2) Nothing Except as provided in paragraph (3), nothing in this subdivision prohibits a business from offering a different price, rate, level, or quality of goods or services to a consumer, including offering its goods or services for no fee, if any of the following are true:(A) The offering is in connection with a consumers voluntary participation in a loyalty, rewards, premium features, discount, or club card program.(B)That difference is reasonably related to the value provided by the consumers data.(C)(B) The offering is for a specific good or service whose functionality is reasonably directly related to the collection, use, or sale of the consumers data.(3) A business shall not offer a different price, rate, level, or quality of goods or services that is unjust, unreasonable, coercive, or usurious.(b) As used in this section, loyalty, rewards, premium features, discount, or club card program includes an offering to one or more consumers of lower prices or rates for goods or services or a higher level or quality of goods or services, including through the use of discounts or other benefits, or a program through which consumers earn points, rewards, credits, incentives, gift cards, or certificates, coupons, or access to sales or discounts on a priority or exclusive basis.
Amended IN Assembly April 30, 2019 Amended IN Assembly April 12, 2019 Amended IN Assembly March 25, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 846Introduced by Assembly Members Burke, Low, and Mullin(Coauthors: Assembly Members Aguiar-Curry, Bonta, Fong, and Blanca Rubio)(Coauthors: Senators Morrell and Portantino)February 20, 2019An act to amend Section 1798.125 of the Civil Code, relating to consumer privacy.LEGISLATIVE COUNSEL'S DIGESTAB 846, as amended, 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. Among these rights, the act allows a consumer to opt out of having the consumers personal information sold to third parties by a business, and the act requires a business that sells a consumers personal information to third parties to give that consumer notice, as specified. The act prohibits a business from discriminating against the consumer for exercising any of the consumers rights under the act, except that a business may offer a different price, rate, level, or quality of goods or services to a consumer if the differential treatment is reasonably related to value provided to the consumer by the consumers data.The act authorizes a business to enter a consumer into a financial incentive program only if the consumer affirmatively consents, subject to revocation at any time by the consumer, to the material terms of the incentive program, and the act requires a business that offers a financial incentive to a consumer to notify the consumer of the financial incentive, as specified.The act further prohibits a business from using a financial incentive practice that is unjust, unreasonable, coercive, or usurious in nature.This bill would, instead, prohibit a business from discriminating against the consumer, by charging higher prices or providing a lower level of goods or services, for exercising any of the consumers rights under the act, except if the differential treatment is reasonably related to value provided to the business by the consumers data, is in connection with a consumers voluntary participation in a loyalty, rewards, premium features, discount, or club card program, as defined, or is in connection with a specific good or service whose functionality is reasonably directly related to the collection, use, or sale of the consumers data.The bill would also strike an inconsistent cross-reference as well as the consent and notification provisions related to a financial incentive program, as described above. The bill would also eliminate the prohibition against a business using a financial incentive practice that is unjust, unreasonable, coercive, or usurious in nature.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
Amended IN Assembly April 30, 2019 Amended IN Assembly April 12, 2019 Amended IN Assembly March 25, 2019
Amended IN Assembly April 30, 2019
Amended IN Assembly April 12, 2019
Amended IN Assembly March 25, 2019
CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION
Assembly Bill No. 846
Introduced by Assembly Members Burke, Low, and Mullin(Coauthors: Assembly Members Aguiar-Curry, Bonta, Fong, and Blanca Rubio)(Coauthors: Senators Morrell and Portantino)February 20, 2019
Introduced by Assembly Members Burke, Low, and Mullin(Coauthors: Assembly Members Aguiar-Curry, Bonta, Fong, and Blanca Rubio)(Coauthors: Senators Morrell and Portantino)
February 20, 2019
An act to amend Section 1798.125 of the Civil Code, relating to consumer privacy.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 846, as amended, 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. Among these rights, the act allows a consumer to opt out of having the consumers personal information sold to third parties by a business, and the act requires a business that sells a consumers personal information to third parties to give that consumer notice, as specified. The act prohibits a business from discriminating against the consumer for exercising any of the consumers rights under the act, except that a business may offer a different price, rate, level, or quality of goods or services to a consumer if the differential treatment is reasonably related to value provided to the consumer by the consumers data.The act authorizes a business to enter a consumer into a financial incentive program only if the consumer affirmatively consents, subject to revocation at any time by the consumer, to the material terms of the incentive program, and the act requires a business that offers a financial incentive to a consumer to notify the consumer of the financial incentive, as specified.The act further prohibits a business from using a financial incentive practice that is unjust, unreasonable, coercive, or usurious in nature.This bill would, instead, prohibit a business from discriminating against the consumer, by charging higher prices or providing a lower level of goods or services, for exercising any of the consumers rights under the act, except if the differential treatment is reasonably related to value provided to the business by the consumers data, is in connection with a consumers voluntary participation in a loyalty, rewards, premium features, discount, or club card program, as defined, or is in connection with a specific good or service whose functionality is reasonably directly related to the collection, use, or sale of the consumers data.The bill would also strike an inconsistent cross-reference as well as the consent and notification provisions related to a financial incentive program, as described above. The bill would also eliminate the prohibition against a business using a financial incentive practice that is unjust, unreasonable, coercive, or usurious in nature.
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. Among these rights, the act allows a consumer to opt out of having the consumers personal information sold to third parties by a business, and the act requires a business that sells a consumers personal information to third parties to give that consumer notice, as specified. The act prohibits a business from discriminating against the consumer for exercising any of the consumers rights under the act, except that a business may offer a different price, rate, level, or quality of goods or services to a consumer if the differential treatment is reasonably related to value provided to the consumer by the consumers data.
The act authorizes a business to enter a consumer into a financial incentive program only if the consumer affirmatively consents, subject to revocation at any time by the consumer, to the material terms of the incentive program, and the act requires a business that offers a financial incentive to a consumer to notify the consumer of the financial incentive, as specified.
The act further prohibits a business from using a financial incentive practice that is unjust, unreasonable, coercive, or usurious in nature.
This bill would, instead, prohibit a business from discriminating against the consumer, by charging higher prices or providing a lower level of goods or services, for exercising any of the consumers rights under the act, except if the differential treatment is reasonably related to value provided to the business by the consumers data, is in connection with a consumers voluntary participation in a loyalty, rewards, premium features, discount, or club card program, as defined, or is in connection with a specific good or service whose functionality is reasonably directly related to the collection, use, or sale of the consumers data.
The bill would also strike an inconsistent cross-reference as well as the consent and notification provisions related to a financial incentive program, as described above. The bill would also eliminate the prohibition against a business using a financial incentive practice that is unjust, unreasonable, coercive, or usurious in nature.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 1798.125 of the Civil Code is amended to read:1798.125. (a) (1) A business shall not discriminate against a consumer because the consumer exercised any of the consumers rights under this title, including, but not limited to, by:(A) Denying goods or services to the consumer.(B) Charging higher prices or rates for goods or services, including through the use of discounts or other benefits or imposing penalties.(C) Providing a lower level or quality of goods or services to the consumer.(D) Suggesting that the consumer will receive a different price or rate for goods or services or a different level or quality of goods or services.(2) Nothing Except as provided in paragraph (3), nothing in this subdivision prohibits a business from offering a different price, rate, level, or quality of goods or services to a consumer, including offering its goods or services for no fee, if any of the following are true:(A) The offering is in connection with a consumers voluntary participation in a loyalty, rewards, premium features, discount, or club card program.(B)That difference is reasonably related to the value provided by the consumers data.(C)(B) The offering is for a specific good or service whose functionality is reasonably directly related to the collection, use, or sale of the consumers data.(3) A business shall not offer a different price, rate, level, or quality of goods or services that is unjust, unreasonable, coercive, or usurious.(b) As used in this section, loyalty, rewards, premium features, discount, or club card program includes an offering to one or more consumers of lower prices or rates for goods or services or a higher level or quality of goods or services, including through the use of discounts or other benefits, or a program through which consumers earn points, rewards, credits, incentives, gift cards, or certificates, coupons, or access to sales or discounts on a priority or exclusive basis.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 1798.125 of the Civil Code is amended to read:1798.125. (a) (1) A business shall not discriminate against a consumer because the consumer exercised any of the consumers rights under this title, including, but not limited to, by:(A) Denying goods or services to the consumer.(B) Charging higher prices or rates for goods or services, including through the use of discounts or other benefits or imposing penalties.(C) Providing a lower level or quality of goods or services to the consumer.(D) Suggesting that the consumer will receive a different price or rate for goods or services or a different level or quality of goods or services.(2) Nothing Except as provided in paragraph (3), nothing in this subdivision prohibits a business from offering a different price, rate, level, or quality of goods or services to a consumer, including offering its goods or services for no fee, if any of the following are true:(A) The offering is in connection with a consumers voluntary participation in a loyalty, rewards, premium features, discount, or club card program.(B)That difference is reasonably related to the value provided by the consumers data.(C)(B) The offering is for a specific good or service whose functionality is reasonably directly related to the collection, use, or sale of the consumers data.(3) A business shall not offer a different price, rate, level, or quality of goods or services that is unjust, unreasonable, coercive, or usurious.(b) As used in this section, loyalty, rewards, premium features, discount, or club card program includes an offering to one or more consumers of lower prices or rates for goods or services or a higher level or quality of goods or services, including through the use of discounts or other benefits, or a program through which consumers earn points, rewards, credits, incentives, gift cards, or certificates, coupons, or access to sales or discounts on a priority or exclusive basis.
SECTION 1. Section 1798.125 of the Civil Code is amended to read:
### SECTION 1.
1798.125. (a) (1) A business shall not discriminate against a consumer because the consumer exercised any of the consumers rights under this title, including, but not limited to, by:(A) Denying goods or services to the consumer.(B) Charging higher prices or rates for goods or services, including through the use of discounts or other benefits or imposing penalties.(C) Providing a lower level or quality of goods or services to the consumer.(D) Suggesting that the consumer will receive a different price or rate for goods or services or a different level or quality of goods or services.(2) Nothing Except as provided in paragraph (3), nothing in this subdivision prohibits a business from offering a different price, rate, level, or quality of goods or services to a consumer, including offering its goods or services for no fee, if any of the following are true:(A) The offering is in connection with a consumers voluntary participation in a loyalty, rewards, premium features, discount, or club card program.(B)That difference is reasonably related to the value provided by the consumers data.(C)(B) The offering is for a specific good or service whose functionality is reasonably directly related to the collection, use, or sale of the consumers data.(3) A business shall not offer a different price, rate, level, or quality of goods or services that is unjust, unreasonable, coercive, or usurious.(b) As used in this section, loyalty, rewards, premium features, discount, or club card program includes an offering to one or more consumers of lower prices or rates for goods or services or a higher level or quality of goods or services, including through the use of discounts or other benefits, or a program through which consumers earn points, rewards, credits, incentives, gift cards, or certificates, coupons, or access to sales or discounts on a priority or exclusive basis.
1798.125. (a) (1) A business shall not discriminate against a consumer because the consumer exercised any of the consumers rights under this title, including, but not limited to, by:(A) Denying goods or services to the consumer.(B) Charging higher prices or rates for goods or services, including through the use of discounts or other benefits or imposing penalties.(C) Providing a lower level or quality of goods or services to the consumer.(D) Suggesting that the consumer will receive a different price or rate for goods or services or a different level or quality of goods or services.(2) Nothing Except as provided in paragraph (3), nothing in this subdivision prohibits a business from offering a different price, rate, level, or quality of goods or services to a consumer, including offering its goods or services for no fee, if any of the following are true:(A) The offering is in connection with a consumers voluntary participation in a loyalty, rewards, premium features, discount, or club card program.(B)That difference is reasonably related to the value provided by the consumers data.(C)(B) The offering is for a specific good or service whose functionality is reasonably directly related to the collection, use, or sale of the consumers data.(3) A business shall not offer a different price, rate, level, or quality of goods or services that is unjust, unreasonable, coercive, or usurious.(b) As used in this section, loyalty, rewards, premium features, discount, or club card program includes an offering to one or more consumers of lower prices or rates for goods or services or a higher level or quality of goods or services, including through the use of discounts or other benefits, or a program through which consumers earn points, rewards, credits, incentives, gift cards, or certificates, coupons, or access to sales or discounts on a priority or exclusive basis.
1798.125. (a) (1) A business shall not discriminate against a consumer because the consumer exercised any of the consumers rights under this title, including, but not limited to, by:(A) Denying goods or services to the consumer.(B) Charging higher prices or rates for goods or services, including through the use of discounts or other benefits or imposing penalties.(C) Providing a lower level or quality of goods or services to the consumer.(D) Suggesting that the consumer will receive a different price or rate for goods or services or a different level or quality of goods or services.(2) Nothing Except as provided in paragraph (3), nothing in this subdivision prohibits a business from offering a different price, rate, level, or quality of goods or services to a consumer, including offering its goods or services for no fee, if any of the following are true:(A) The offering is in connection with a consumers voluntary participation in a loyalty, rewards, premium features, discount, or club card program.(B)That difference is reasonably related to the value provided by the consumers data.(C)(B) The offering is for a specific good or service whose functionality is reasonably directly related to the collection, use, or sale of the consumers data.(3) A business shall not offer a different price, rate, level, or quality of goods or services that is unjust, unreasonable, coercive, or usurious.(b) As used in this section, loyalty, rewards, premium features, discount, or club card program includes an offering to one or more consumers of lower prices or rates for goods or services or a higher level or quality of goods or services, including through the use of discounts or other benefits, or a program through which consumers earn points, rewards, credits, incentives, gift cards, or certificates, coupons, or access to sales or discounts on a priority or exclusive basis.
1798.125. (a) (1) A business shall not discriminate against a consumer because the consumer exercised any of the consumers rights under this title, including, but not limited to, by:
(A) Denying goods or services to the consumer.
(B) Charging higher prices or rates for goods or services, including through the use of discounts or other benefits or imposing penalties.
(C) Providing a lower level or quality of goods or services to the consumer.
(D) Suggesting that the consumer will receive a different price or rate for goods or services or a different level or quality of goods or services.
(2) Nothing Except as provided in paragraph (3), nothing in this subdivision prohibits a business from offering a different price, rate, level, or quality of goods or services to a consumer, including offering its goods or services for no fee, if any of the following are true:
(A) The offering is in connection with a consumers voluntary participation in a loyalty, rewards, premium features, discount, or club card program.
(B)That difference is reasonably related to the value provided by the consumers data.
(C)
(B) The offering is for a specific good or service whose functionality is reasonably directly related to the collection, use, or sale of the consumers data.
(3) A business shall not offer a different price, rate, level, or quality of goods or services that is unjust, unreasonable, coercive, or usurious.
(b) As used in this section, loyalty, rewards, premium features, discount, or club card program includes an offering to one or more consumers of lower prices or rates for goods or services or a higher level or quality of goods or services, including through the use of discounts or other benefits, or a program through which consumers earn points, rewards, credits, incentives, gift cards, or certificates, coupons, or access to sales or discounts on a priority or exclusive basis.