Today's Law As Amended

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AB-846 Customer loyalty programs.(2019-2020)



SECTION 1.
 The Legislature finds and declares that California consumers enjoy the benefits and convenience of customer loyalty programs. Studies show all of the following:
(a) Eighty percent of adults belong to some type of customer loyalty program.
(b) Customer loyalty program membership increased by 15 percent between 2015 and 2017.
(c) Eighty-seven percent of customer loyalty program members say they are open to sharing personal information about their activity and behavior in order to receive more personalized rewards.

SEC. 2.

 Section 1798.126 is added to the Civil Code, to read:

1798.126.
 (a) This title shall not be construed to prohibit a business from offering a different price, rate, level, or quality of goods or services to a consumer, including offering its goods or services for no fee, if either of the following is true:
(1) The offering is in connection with a consumer’s voluntary participation in a loyalty, rewards, premium features, discounts, or club card program.
(2) The offering is for a specific good or service whose functionality is directly related to the collection, use, or sale of the consumer’s data.
(b) A business shall not offer loyalty, rewards, premium features, discounts, or club card programs that are unjust, unreasonable, coercive, or usurious in nature.
(c) As used in this section, “loyalty, rewards, premium features, discounts, or club card program” includes an offering to one or more consumers of lower prices or rates for goods or services or a higher level or quality of goods or services, including through the use of discounts or other benefits, or a program through which consumers earn points, rewards, credits, incentives, gift cards or certificates, coupons, or access to sales or discounts on a priority or exclusive basis.