Start with the actual exchange. Identify the personal information the program collects, retains, sells, or shares; the benefit, payment, price, or service difference the consumer receives; and whether the difference is reasonably related to the value that the data provides to the business.
Give the Notice of Financial Incentive before the consumer opts in. The notice must summarize the program, describe its material terms and implicated personal-information categories, explain how to opt in and withdraw, state a good-faith estimate of the value of the consumer's data, and explain the calculation method and why the price or service difference is reasonably related to that value. Consent must be prior, affirmative, specific to the program, and revocable at any time.
Section 7081 permits several valuation approaches, including marginal or average value, aggregate value divided by the number of consumers, revenue or profit generated from the data, expenses connected to the data, and the cost of the incentive. A business may use another practical and reasonably reliable good-faith method. The calculation must support the actual benefit or difference offered; naming a method without its inputs and relationship to the program is not enough.
Does every loyalty or discount program require a CCPA Notice of Financial Incentive?
No. The notice is required when the program is a financial incentive or price or service difference connected to collecting, selling, sharing, or retaining personal information. A business should map the data required for the program, the benefit offered, and the value the data provides. A discount unrelated to personal information does not become a CCPA financial incentive merely because the business offers a lower price.
What must a Notice of Financial Incentive say?
Before enrollment, the notice must give a succinct program summary; the material terms, including the implicated personal-information categories and the value of the consumer's data; instructions for opting in; the right and method to withdraw at any time; a good-faith value estimate; the valuation method; and an explanation of how the price or service difference is reasonably related to that value.
How can a business calculate the value of consumer data?
Section 7081 allows a reasonable, documented, good-faith method using one or more listed measures: marginal value, average value, aggregate value divided by the number of consumers, revenue, expenses, profit, the cost of the incentive, or another practical and reasonably reliable method. Keep the period, inputs, assumptions, calculation, approval, and explanation connecting the result to the actual price or service difference.
Can a consumer leave a CCPA financial incentive program?
Yes. Prior opt-in consent may be revoked at any time. The notice must explain how to withdraw, and the business should stop the program's data-dependent processing and apply the disclosed withdrawal consequences across the affected systems. If a consumer initially refuses opt-in consent, Civil Code section 1798.125 requires the business to wait at least 12 months before asking again, unless regulations prescribe otherwise.
When is a price or service difference discriminatory under the CCPA?
A difference is prohibited when it penalizes a consumer for exercising a CCPA right unless the difference is reasonably related to the value of that consumer's data. If the business cannot calculate a good-faith value estimate or show that relationship, section 7080 says it must not offer the difference. A difference directly resulting from compliance with state or federal law is not discriminatory under section 7080.