September 24, 2020 If a business that operates a loyalty program provides a “notice of financial incentive,” is it required to disclose a numeric valuation of the value of a consumer’s data?
September 24, 2020
Authored by: David Zetoony
If a loyalty program constitutes a “financial incentive,” the regulations implementing the CCPA require that a business provide a “notice of financial incentives” which, among other things, should include an explanation of how the financial incentive is “reasonably related” to the value of the consumer’s data.1 As part of that explanation, the business is purportedly required to provide a “good-faith estimate of the value of the consumer’s data that forms the basis” for the financial incentive and provide a “description of the method” used to calculate that value.2
The regulations implementing the CCPA indicate that a business may use any “reasonable and good faith method for calculating the value of the consumer’s data” to the business, but instructs the business to at least “consider” the following eight enumerated valuation methodologies:3