Bill Text: CA AB846 | 2019-2020 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Public employment: public officers or employees declared by law to be peace officers.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2020-09-30 - Chaptered by Secretary of State - Chapter 322, Statutes of 2020. [AB846 Detail]

Download: California-2019-AB846-Amended.html

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Amended  IN  Assembly  March 25, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill

No. 846

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Introduced by Assembly Members Burke, Low, and Mullin

February 20, 2019

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An act relating to consumer privacy. An act to amend Section 1798.125 of the Civil Code, relating to consumer privacy.

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 consumer’s personal information sold to third parties by a business, and the act requires a business that sells a consumer’s 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 consumer’s 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 consumer’s data.

The act authorizes a business to enter 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 for exercising any of the consumer’s rights under the act, except if the differential treatment is reasonably related to value provided to the business by the consumer’s data.

The bill would prohibit a business from using an incentive practice that is coercive or usurious in nature and would specify that a consumer is authorized to enter into an incentive program only if the consumer gives prior consent, which the consumer may revoke at any time.

The bill would also strike an inconsistent cross-reference.

This bill would express the intent of the Legislature to enact legislation that would clarify that the California Consumer Privacy Act of 2018 does not prohibit a consumer from choosing to participate in a customer loyalty program that offers incentives such as rewards, gift cards or certificates, discounts, or other benefits and would further clarify that a business that offers a customer loyalty program may continue to offer rewards, gift cards or certificates, discounts, or other benefits associated with a customer loyalty program in a manner that is reasonably anticipated within the context of a business’s ongoing relationship with a consumer.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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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 consumer’s rights under this title, including, but not limited to, by:

(A) Denying goods or services to the consumer.

(B) Charging different prices or rates for goods or services, including through the use of discounts or other benefits or imposing penalties.

(C) Providing a different 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 in this subdivision prohibits a business from charging a consumer a different price or rate, or from providing a different level or either of the following:

(A) Offering a different price, rate, level, or quality of goods or services to the consumer, including offering goods or services for no fee, if that difference is reasonably related to the value provided to the consumer business by the consumer’s data.

(B) Offering a specific good or service the functionality of which is reasonably related to the collection, use, or sale of the consumer’s data.

(b) (1) A Notwithstanding subdivision (a), a business may offer financial incentives, including including, but not limited to, gift cards or certificates, discounts, payments to consumers consumers, or other benefits associated with a loyalty or rewards program, as compensation, compensation for the collection collection, the sale, or the retention of personal information, information. the sale of personal information, or the deletion of personal information. A business may also offer a different price, rate, level, or quality of goods or services to the consumer if that price or difference is directly related to the value provided to the consumer by the consumer’s data.

(2) A business that offers any financial incentives pursuant to subdivision (a), shall notify consumers of the financial incentives pursuant to Section 1798.135. consumer may enter into an incentive program only if the consumer gives the business prior opt-in consent. The business shall provide notice that clearly describes the material terms of the incentive program. The consumer may revoke the consumer’s consent at any time.

(3) A business may enter a consumer into a financial an incentive program only if the consumer gives the business prior opt-in consent pursuant to Section 1798.135 which that clearly describes the material terms of the financial incentive program, program and which that may be revoked by the consumer at any time.

(4) A business shall not use financial incentive practices that are unjust, unreasonable, coercive, coercive or usurious in nature.

SECTION 1.

(a)The Legislature finds and declares that California consumers enjoy the benefits and convenience of customer loyalty programs. Studies show all of the following:

(1)Eighty percent of adults belong to some type of customer loyalty program.

(2)Customer loyalty program membership increased by 15 percent between 2015 and 2017.

(3)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.

(b)It is the intent of the Legislature to enact legislation that would clarify that the California Consumer Privacy Act of 2018 does not prohibit a consumer from choosing to participate in a customer loyalty program that offers incentives such as rewards, gift cards or certificates, discounts, or other benefits and would further clarify that a business that offers a customer loyalty program may continue to offer rewards, gift cards or certificates, discounts, or other benefits associated with a customer loyalty program in a manner that is reasonably anticipated within the context of a business’s ongoing relationship with a consumer.