Today's Law As Amended

PDF |Add To My Favorites |Track Bill | print page

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 the offering is in connection with a consumer’s voluntary participation in a loyalty, rewards, premium features, discounts, or club card program.
(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.
(d) Nothing in this section shall be construed to deny a consumer’s rights pursuant to Section 1798.120.
(e) (1) Except as provided in paragraph (2), a business shall not sell the personal information of consumers collected as part of a loyalty, rewards, premium features, discounts, or club card program.
(2) A business may sell a consumer’s personal information collected as part of a loyalty, rewards, premium features, discounts, or club card program to a third party in order for the third party to provide the consumer with a financial incentive, sale, or other discount when both of the following conditions are met:
(A) The business obtains the express consent of the consumer to sell the information to the specific third party after the business discloses the terms of the sale. A consumer shall be given the option to participate in the program, on equal terms with other participants, without consenting to the sale of the consumer’s personal information with any third parties.
(B) The third party uses the information only for the purposes of identifying the consumer as an eligible member of the business’ loyalty, rewards, premium features, discounts, or club card program. The third party may not retain or otherwise use or disclose the personal information.