Amended IN Senate September 06, 2019 Amended IN Senate July 11, 2019 Amended IN Assembly May 20, 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. 846Introduced by Assembly Members Burke, Low, and Mullin(Coauthors: Assembly Members Aguiar-Curry, Bigelow, Bonta, Fong, and Blanca Rubio)(Coauthors: Senators Morrell and Portantino)February 20, 2019An act to add Section 1798.126 to 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 prohibit the act from being construed to prohibit a business from offering a different price, rate, level, or quality of goods or services to a consumer if the offering is in connection with a consumers voluntary participation in a loyalty, rewards, premium features, discount, or club card program, as defined. The bill would prohibit a business from offering loyalty, rewards, premium features, discounts, or club card programs that are unjust, unreasonable, coercive, or usurious in nature. The bill would prohibit a business from selling the personal information of consumers collected as part of a loyalty, rewards, premium features, discounts, or club card program. program, subject to specified exceptions, including that the business is authorized to sell the information to a third party for the purpose of providing the consumer with a financial incentive, sale, or other discount if the business obtains the express consent of the consumer to sell the information to the specific third party after the business discloses the terms of the sale, and the consumer is given the option to participate in the program, on equal terms with other participants, without consenting to the sale of the consumers personal information with any third parties.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. The Legislature finds and declares that California consumers enjoy the benefits and convenience of customer loyalty programs. Studies show all of the following:(a) Eighty percent of adults belong to some type of customer loyalty program.(b) Customer loyalty program membership increased by 15 percent between 2015 and 2017.(c) 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.SEC. 2. Section 1798.126 is added to the Civil Code, to read:1798.126. (a) This title shall not be construed to prohibit 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 the offering is in connection with a consumers voluntary participation in a loyalty, rewards, premium features, discounts, or club card program.(b) A business shall not offer loyalty, rewards, premium features, discounts, or club card programs that are unjust, unreasonable, coercive, or usurious in nature.(c) As used in this section, loyalty, rewards, premium features, discounts, 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.(d) Nothing in this section shall be construed to deny a consumers rights pursuant to Section 1798.120.(e) A (1) Except as provided in paragraph (2), a business shall not sell the personal information of consumers collected as part of a loyalty, rewards, premium features, discounts, or club card program.(2) A business may sell a consumers personal information collected as part of a loyalty, rewards, premium features, discounts, or club card program to a third party in order for the third party to provide the consumer with a financial incentive, sale, or other discount when both of the following conditions are met:(A) The business obtains the express consent of the consumer to sell the information to the specific third party after the business discloses the terms of the sale. A consumer shall be given the option to participate in the program, on equal terms with other participants, without consenting to the sale of the consumers personal information with any third parties.(B) The third party uses the information only for the purposes of identifying the consumer as an eligible member of the business loyalty, rewards, premium features, discounts, or club card program. The third party may not retain or otherwise use or disclose the personal information.
Amended IN Senate September 06, 2019 Amended IN Senate July 11, 2019 Amended IN Assembly May 20, 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. 846Introduced by Assembly Members Burke, Low, and Mullin(Coauthors: Assembly Members Aguiar-Curry, Bigelow, Bonta, Fong, and Blanca Rubio)(Coauthors: Senators Morrell and Portantino)February 20, 2019An act to add Section 1798.126 to 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 prohibit the act from being construed to prohibit a business from offering a different price, rate, level, or quality of goods or services to a consumer if the offering is in connection with a consumers voluntary participation in a loyalty, rewards, premium features, discount, or club card program, as defined. The bill would prohibit a business from offering loyalty, rewards, premium features, discounts, or club card programs that are unjust, unreasonable, coercive, or usurious in nature. The bill would prohibit a business from selling the personal information of consumers collected as part of a loyalty, rewards, premium features, discounts, or club card program. program, subject to specified exceptions, including that the business is authorized to sell the information to a third party for the purpose of providing the consumer with a financial incentive, sale, or other discount if the business obtains the express consent of the consumer to sell the information to the specific third party after the business discloses the terms of the sale, and the consumer is given the option to participate in the program, on equal terms with other participants, without consenting to the sale of the consumers personal information with any third parties.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
Amended IN Senate September 06, 2019 Amended IN Senate July 11, 2019 Amended IN Assembly May 20, 2019 Amended IN Assembly April 30, 2019 Amended IN Assembly April 12, 2019 Amended IN Assembly March 25, 2019
Amended IN Senate September 06, 2019
Amended IN Senate July 11, 2019
Amended IN Assembly May 20, 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, Bigelow, 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, Bigelow, Bonta, Fong, and Blanca Rubio)(Coauthors: Senators Morrell and Portantino)
February 20, 2019
An act to add Section 1798.126 to 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 prohibit the act from being construed to prohibit a business from offering a different price, rate, level, or quality of goods or services to a consumer if the offering is in connection with a consumers voluntary participation in a loyalty, rewards, premium features, discount, or club card program, as defined. The bill would prohibit a business from offering loyalty, rewards, premium features, discounts, or club card programs that are unjust, unreasonable, coercive, or usurious in nature. The bill would prohibit a business from selling the personal information of consumers collected as part of a loyalty, rewards, premium features, discounts, or club card program. program, subject to specified exceptions, including that the business is authorized to sell the information to a third party for the purpose of providing the consumer with a financial incentive, sale, or other discount if the business obtains the express consent of the consumer to sell the information to the specific third party after the business discloses the terms of the sale, and the consumer is given the option to participate in the program, on equal terms with other participants, without consenting to the sale of the consumers personal information with any third parties.
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 prohibit the act from being construed to prohibit a business from offering a different price, rate, level, or quality of goods or services to a consumer if the offering is in connection with a consumers voluntary participation in a loyalty, rewards, premium features, discount, or club card program, as defined. The bill would prohibit a business from offering loyalty, rewards, premium features, discounts, or club card programs that are unjust, unreasonable, coercive, or usurious in nature. The bill would prohibit a business from selling the personal information of consumers collected as part of a loyalty, rewards, premium features, discounts, or club card program. program, subject to specified exceptions, including that the business is authorized to sell the information to a third party for the purpose of providing the consumer with a financial incentive, sale, or other discount if the business obtains the express consent of the consumer to sell the information to the specific third party after the business discloses the terms of the sale, and the consumer is given the option to participate in the program, on equal terms with other participants, without consenting to the sale of the consumers personal information with any third parties.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares that California consumers enjoy the benefits and convenience of customer loyalty programs. Studies show all of the following:(a) Eighty percent of adults belong to some type of customer loyalty program.(b) Customer loyalty program membership increased by 15 percent between 2015 and 2017.(c) 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.SEC. 2. Section 1798.126 is added to the Civil Code, to read:1798.126. (a) This title shall not be construed to prohibit 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 the offering is in connection with a consumers voluntary participation in a loyalty, rewards, premium features, discounts, or club card program.(b) A business shall not offer loyalty, rewards, premium features, discounts, or club card programs that are unjust, unreasonable, coercive, or usurious in nature.(c) As used in this section, loyalty, rewards, premium features, discounts, 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.(d) Nothing in this section shall be construed to deny a consumers rights pursuant to Section 1798.120.(e) A (1) Except as provided in paragraph (2), a business shall not sell the personal information of consumers collected as part of a loyalty, rewards, premium features, discounts, or club card program.(2) A business may sell a consumers personal information collected as part of a loyalty, rewards, premium features, discounts, or club card program to a third party in order for the third party to provide the consumer with a financial incentive, sale, or other discount when both of the following conditions are met:(A) The business obtains the express consent of the consumer to sell the information to the specific third party after the business discloses the terms of the sale. A consumer shall be given the option to participate in the program, on equal terms with other participants, without consenting to the sale of the consumers personal information with any third parties.(B) The third party uses the information only for the purposes of identifying the consumer as an eligible member of the business loyalty, rewards, premium features, discounts, or club card program. The third party may not retain or otherwise use or disclose the personal information.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. The Legislature finds and declares that California consumers enjoy the benefits and convenience of customer loyalty programs. Studies show all of the following:(a) Eighty percent of adults belong to some type of customer loyalty program.(b) Customer loyalty program membership increased by 15 percent between 2015 and 2017.(c) 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.
SECTION 1. The Legislature finds and declares that California consumers enjoy the benefits and convenience of customer loyalty programs. Studies show all of the following:(a) Eighty percent of adults belong to some type of customer loyalty program.(b) Customer loyalty program membership increased by 15 percent between 2015 and 2017.(c) 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.
SECTION 1. The Legislature finds and declares that California consumers enjoy the benefits and convenience of customer loyalty programs. Studies show all of the following:
### SECTION 1.
(a) Eighty percent of adults belong to some type of customer loyalty program.
(b) Customer loyalty program membership increased by 15 percent between 2015 and 2017.
(c) 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.
SEC. 2. Section 1798.126 is added to the Civil Code, to read:1798.126. (a) This title shall not be construed to prohibit 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 the offering is in connection with a consumers voluntary participation in a loyalty, rewards, premium features, discounts, or club card program.(b) A business shall not offer loyalty, rewards, premium features, discounts, or club card programs that are unjust, unreasonable, coercive, or usurious in nature.(c) As used in this section, loyalty, rewards, premium features, discounts, 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.(d) Nothing in this section shall be construed to deny a consumers rights pursuant to Section 1798.120.(e) A (1) Except as provided in paragraph (2), a business shall not sell the personal information of consumers collected as part of a loyalty, rewards, premium features, discounts, or club card program.(2) A business may sell a consumers personal information collected as part of a loyalty, rewards, premium features, discounts, or club card program to a third party in order for the third party to provide the consumer with a financial incentive, sale, or other discount when both of the following conditions are met:(A) The business obtains the express consent of the consumer to sell the information to the specific third party after the business discloses the terms of the sale. A consumer shall be given the option to participate in the program, on equal terms with other participants, without consenting to the sale of the consumers personal information with any third parties.(B) The third party uses the information only for the purposes of identifying the consumer as an eligible member of the business loyalty, rewards, premium features, discounts, or club card program. The third party may not retain or otherwise use or disclose the personal information.
SEC. 2. Section 1798.126 is added to the Civil Code, to read:
### SEC. 2.
1798.126. (a) This title shall not be construed to prohibit 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 the offering is in connection with a consumers voluntary participation in a loyalty, rewards, premium features, discounts, or club card program.(b) A business shall not offer loyalty, rewards, premium features, discounts, or club card programs that are unjust, unreasonable, coercive, or usurious in nature.(c) As used in this section, loyalty, rewards, premium features, discounts, 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.(d) Nothing in this section shall be construed to deny a consumers rights pursuant to Section 1798.120.(e) A (1) Except as provided in paragraph (2), a business shall not sell the personal information of consumers collected as part of a loyalty, rewards, premium features, discounts, or club card program.(2) A business may sell a consumers personal information collected as part of a loyalty, rewards, premium features, discounts, or club card program to a third party in order for the third party to provide the consumer with a financial incentive, sale, or other discount when both of the following conditions are met:(A) The business obtains the express consent of the consumer to sell the information to the specific third party after the business discloses the terms of the sale. A consumer shall be given the option to participate in the program, on equal terms with other participants, without consenting to the sale of the consumers personal information with any third parties.(B) The third party uses the information only for the purposes of identifying the consumer as an eligible member of the business loyalty, rewards, premium features, discounts, or club card program. The third party may not retain or otherwise use or disclose the personal information.
1798.126. (a) This title shall not be construed to prohibit 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 the offering is in connection with a consumers voluntary participation in a loyalty, rewards, premium features, discounts, or club card program.(b) A business shall not offer loyalty, rewards, premium features, discounts, or club card programs that are unjust, unreasonable, coercive, or usurious in nature.(c) As used in this section, loyalty, rewards, premium features, discounts, 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.(d) Nothing in this section shall be construed to deny a consumers rights pursuant to Section 1798.120.(e) A (1) Except as provided in paragraph (2), a business shall not sell the personal information of consumers collected as part of a loyalty, rewards, premium features, discounts, or club card program.(2) A business may sell a consumers personal information collected as part of a loyalty, rewards, premium features, discounts, or club card program to a third party in order for the third party to provide the consumer with a financial incentive, sale, or other discount when both of the following conditions are met:(A) The business obtains the express consent of the consumer to sell the information to the specific third party after the business discloses the terms of the sale. A consumer shall be given the option to participate in the program, on equal terms with other participants, without consenting to the sale of the consumers personal information with any third parties.(B) The third party uses the information only for the purposes of identifying the consumer as an eligible member of the business loyalty, rewards, premium features, discounts, or club card program. The third party may not retain or otherwise use or disclose the personal information.
1798.126. (a) This title shall not be construed to prohibit 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 the offering is in connection with a consumers voluntary participation in a loyalty, rewards, premium features, discounts, or club card program.(b) A business shall not offer loyalty, rewards, premium features, discounts, or club card programs that are unjust, unreasonable, coercive, or usurious in nature.(c) As used in this section, loyalty, rewards, premium features, discounts, 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.(d) Nothing in this section shall be construed to deny a consumers rights pursuant to Section 1798.120.(e) A (1) Except as provided in paragraph (2), a business shall not sell the personal information of consumers collected as part of a loyalty, rewards, premium features, discounts, or club card program.(2) A business may sell a consumers personal information collected as part of a loyalty, rewards, premium features, discounts, or club card program to a third party in order for the third party to provide the consumer with a financial incentive, sale, or other discount when both of the following conditions are met:(A) The business obtains the express consent of the consumer to sell the information to the specific third party after the business discloses the terms of the sale. A consumer shall be given the option to participate in the program, on equal terms with other participants, without consenting to the sale of the consumers personal information with any third parties.(B) The third party uses the information only for the purposes of identifying the consumer as an eligible member of the business loyalty, rewards, premium features, discounts, or club card program. The third party may not retain or otherwise use or disclose the personal information.
1798.126. (a) This title shall not be construed to prohibit 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 the offering is in connection with a consumers voluntary participation in a loyalty, rewards, premium features, discounts, or club card program.
(b) A business shall not offer loyalty, rewards, premium features, discounts, or club card programs that are unjust, unreasonable, coercive, or usurious in nature.
(c) As used in this section, loyalty, rewards, premium features, discounts, 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.
(d) Nothing in this section shall be construed to deny a consumers rights pursuant to Section 1798.120.
(e) A (1) Except as provided in paragraph (2), a business shall not sell the personal information of consumers collected as part of a loyalty, rewards, premium features, discounts, or club card program.
(2) A business may sell a consumers personal information collected as part of a loyalty, rewards, premium features, discounts, or club card program to a third party in order for the third party to provide the consumer with a financial incentive, sale, or other discount when both of the following conditions are met:
(A) The business obtains the express consent of the consumer to sell the information to the specific third party after the business discloses the terms of the sale. A consumer shall be given the option to participate in the program, on equal terms with other participants, without consenting to the sale of the consumers personal information with any third parties.
(B) The third party uses the information only for the purposes of identifying the consumer as an eligible member of the business loyalty, rewards, premium features, discounts, or club card program. The third party may not retain or otherwise use or disclose the personal information.