February 1, 2022 - Privacy, Trials

California AG Issues Notices of Violations: Will We Soon Have Guidance on Loyalty Programs Under the CCPA

In an action that may eventually lead to clarification around what constitutes a “financial incentive” for purposes of the California Consumer Privacy Act (CCPA), Attorney General Rob Bonta announced on January 28, 2022 that his office (the AG) was beginning an “investigative sweep” pursuant to the CCPA.  The AG identified its focus on businesses operating customer loyalty programs in California and those businesses’ compliance with the CCPA’s notice requirements relating to financial incentives.  In its press release, the AG indicated that it had sent letters to “major corporations” across industry sectors, including retail, home improvement, travel, and food services.  These letters alleged the recipients’ non-compliance with the CCPA and provided a 30-day period for companies to cure existing issues and come into compliance with the law.

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