Financial Incentive

Under CCPA, a program, benefit, or other offering that provides different prices, rates, levels, or quality of goods or services to consumers in exchange for retention or sale of personal information. Financial incentives include loyalty programs, discount offers, coupons, or other benefits tied to data collection or retention. CCPA allows financial incentives as long as they're not unjust, unreasonable, coercive, or usurious, and comply with specific requirements. Organizations offering financial incentives must provide notice describing material terms, explain how to opt-in and opt-out, include a good-faith estimate of the value of consumer data, and explain the method used to calculate that value. The incentive must reasonably relate to the value of the consumer's data. This provision recognizes that data has economic value and allows businesses to share that value with consumers, while preventing exploitative practices. Organizations should carefully design and document financial incentive programs to ensure compliance.