Overview:
A business may enter a consumer into a financial incentive program only if the consumer gives the business prior opt-in consent pursuant to Section 1798.130 that clearly describes the material terms of the financial incentive program, and which may be revoked by the consumer at any time.
Action Items:
1) Review your business's pricing policies and practices to verify that they do not price discriminate - intentionally or inadvertently - based upon whether a person opts-out of the sale of their information.
2) Review existing privacy notices and verify that they meet the new requirements of the CCPA.
3) Draft an appropriate policy for managing requests by consumers who exercise their rights under the CCPA.
4) Train employees on how to handle and document requests by consumers who exercise their rights under the CCPA.
5) Verify that policies in place facilitate compliance with the new requirements of the CCPA for consumers who exercise their rights.
6) Note that this requirement does not have a parallel in the GDPR, and therefore even companies fully compliant with the GDPR will need to add processes to comply with it
7) Businesses should review their business practices as it relates to Personal Information to ensure they are not providing any incentives that would violate the nondiscrimination requirement. They should also put in place policies and procedures to ensure that such practices are not adopted in the future. For example, have all incentive programs relating to Personal Information reviewed by the legal department or a designated committee.
8) If the Business plans to offer a permitted financial incentive for the collection, sale or deletion of Personal Information, ensure that the Consumer was notified of all material terms and direct the Consumer to the Business' opt-in page. Establish a clear process for Consumers to revoke their opt-in decision, and ensure that decision is honored.
9) Develop a means to tag and track users who have opted into financial incentives so their Personal Information can be treated separately compared to ones who have not.
Related Documents:
1) Privacy Notice / Policy
2) Documentation that validates the business notifies consumers of financial incentives, if any
Additional Guidance:
Right to Receive Services on Equal Terms
The "right to equal service and price" refers to the CCPA's prohibition against discriminating against consumers who exercise their rights under the CCPA. Where a consumer exercises a right, a business is prohibited from denying goods or services, charging a different price, imposing penalties, providing a different level or quality of service, or suggesting the consumer will receive a different price or rate or different level or quality of goods or services.
Nondiscrimination Exceptions
1) Businesses can charge different prices, or provide a different level or quality of goods or services, if that difference is reasonably related to the value provided to the Consumer by the Consumer's data.
2) Businesses may offer financial incentives for the collection, sale or deletion of Personal Information if the Business has notified the Consumer of the material terms of the incentive and obtained opt-in consent prior to enrollment. The Consumer has the right to withdraw this opt-in at any time.
3) Any financial incentive practice cannot be unjust, unreasonable, coercive or usurious in nature.
Article ID: 83
Created: September 26, 2022
Last Updated: September 26, 2022
Author: Matthew Burdick
Online URL: http://www.compliancewiki.org/article/ccpa-entering-consumes-into-financial-incentive-programs-125-b-3-83.html