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Does the CCPA require that the benefits conferred by a loyalty program be “directly related” to the value of a consumer’s data to the business?

September 17, 2020

Arguably no.

The CCPA states that a business “may []offer” different prices or rates to consumers if those prices or rates are “directly related to the value provided to the business by the consumer’s data.”1 Interestingly, the CCPA does not prohibit a business from the opposite activity.  In other words, it does not state that a business is prohibited from offering different prices or rates if the benefits of a loyalty program are not directly related to the value provided to the business. 

For more information and resources about the CCPA visit http://www.CCPA-info.com.


This article is part of a multi-part series published by BCLP to help companies understand and implement the General Data Protection Regulation, the California Consumer Privacy Act and other privacy statutes.  You can find more information on the CCPA in BCLP’s California Consumer Privacy Act Practical Guide, and more information about the GDPR in the American Bar Association’s The EU GDPR: Answers to the Most Frequently Asked Questions.

1. CCPA, Section 1798.125(b)(1).

This document provides a general summary and is for information/educational purposes only. It is not intended to be comprehensive, nor does it constitute legal advice. Specific legal advice should always be sought before taking or refraining from taking any action.