How Will the California Consumer Privacy Act Affect Loyalty Programs?

Loyalty programs are everywhere. A Starbucks gold card might get you a free shot of syrup or refill on coffee. Your hotel gives you free upgrades and snacks for being a loyal member. When I buy a salad from the cafe downstairs from my office, I punch in my phone number and collect points that, someday, I will cash in for a free roast beef panini and large fountain soda. But now, there’s some concern that such loyalty programs will go the way of the dinosaur under the CCPA.

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Will the California Consumer Privacy Act Survive Big Tech?

It should come as no surprise that many in the tech industry are not happy about the California Consumer Privacy Act. As we speed toward January 1, 2020, industry lobbyists and business-geared legislators are pushing a number of amendments that could severely limit the effectiveness and reach of the CCPA.

Todd Weaver and Brendan Eich recently wrote an op-ed in the Mercury News about the generational shift in tech companies’ approach to privacy: while new, smaller tech companies see the appeal and necessity of privacy regulation, Big Tech is digging in its heels.

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Potential Amendments to the California Consumer Privacy Act – AB 25 and AB 1564

With the California Consumer Privacy Act just six months from implementation, the California legislature is hard at work refining and amending the CCPA. While some of the proposed amendments seek to clarify ambiguous terms, others would limit or expand the reach of the law, representing the divide between privacy advocates and the tech industry.

Note: this post was updated following the June 28, 2019 changes to AB 25.

Over the course of the next several months, this blog will detail several of the most interesting and impactful debates surrounding the CCPA. Today, let’s discuss AB-25 and AB-1564.

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California Consumer Privacy Act: What You Need to Know

On June 28, 2018, Governor Jerry Brown signed into law the California Consumer Privacy Act (CCPA), which at the time was the strongest protection for non-sensitive personal information in the country. Taking a cue from the European Union’s General Data Protection Regulation (GDPR), the CCPA requires thousands of California businesses to consider the implications of their data collection and sharing in ways they likely had not considered.

It’s frankly hard to believe that a law that puts such strict restrictions on companies’ collection of consumer data could pass in California, particularly in this day and age where Silicon Valley tech companies are willing to offer free services in exchange for no-holds-barred access to user data. After all, as the old adage says, if you’re not paying for the product, YOU are the product.

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