Notice of Financial Incentive
Definition
A required disclosure under CCPA when businesses offer financial incentives or price differences related to the collection, retention, or sale of consumer personal information. The notice must explain material terms of the financial incentive, how to opt-in, how to opt-out, and a good-faith explanation of how the value of consumer data forms the basis for the incentive or price difference. This notice ensures transparency about programs that exchange value for personal information—like loyalty programs, discount offers, or premium service tiers. The notice should be clear about what consumers are agreeing to, explain the data-value relationship, make opt-in and opt-out easy, and provide sufficient detail for informed decisions. Organizations offering financial incentives must post the notice where the incentive is offered, obtain opt-in consent before enrollment, maintain records of consent, and calculate value of consumer data in good faith using reasonable methods. Financial incentive notices complement general privacy policies with specific program details.
Applicable Laws & Regulations
- 1CCPA Section 1798.125(b)(3) - Notice of financial incentive requirement
- 2CCPA Regulations Section 999.337 - Notice of financial incentive details
- 3CCPA Section 1798.125(b)(2) - Value calculation explanation