If a business offers a financial incentive when collecting a consumer’s personal information, does it have to estimate the value of the financial incentive?

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No.

The CCPA generally prohibits a business from “discriminat[ing]” against a consumer that chooses to exercise “any of the consumer’s rights” – i.e., the right of access, the right of deletion, or the right to opt out of the sale of information.1  An exception to the rule against discrimination arises if a company provides a different price or a different level of service and the difference is “reasonably related to the value provided to the business by the consumer’s data.”2  When that occurs, the CCPA requires that the business “notify consumers of the financial incentives” that are offered, and approximate that the discriminatory “difference is reasonably related to the value provided to the business by the consumer’s data.”3

Unlike situations in which a company discriminates against a consumer that is exercising a privacy right, when a financial incentive is tied to the collection of consumer information the CCPA states only that a business must notify consumers of the financial incentive and comply with the general notice obligations found within the CCPA that apply anytime personal information is collected.4  While a business is required to notify a consumer of any “material terms” that may relate to the financial incentive, it is not required to estimate the value of the financial incentive or show that the value relates to the value of the data to the business.5 

For more information and resources about the CCPA visit http://www.CCPA-info.com. 


This article is part of a multi-part series published by BCLP to help companies understand and implement the General Data Protection Regulation, the California Consumer Privacy Act and other privacy statutes.  You can find more information on the CCPA in BCLP’s California Consumer Privacy Act Practical Guide, and more information about the GDPR in the American Bar Association’s The EU GDPR: Answers to the Most Frequently Asked Questions.

1. Cal. Civil Code 1798.125(a)(1).

2. Cal. Civil Code 1798.125(a)(2).

3. Cal. Civil Code 1798.125(b)(2) (applying a notification requirement only to financial incentives offered pursuant to Cal. Civil Code 1798.125(a), not to financial incentives offered pursuant to Cal. Civil Code 1798.125(b)(1)).

4. Cal. Civil Code 1798.125(b)(2) (referring to providing notice pursuant to Section 1798.130); Cal. Civil Code 1798.130 (a) (referring to information that must be disclosed when a business collects personal information).

5. Cal. Civil Code 1798.125(b)(3).

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