Partner Reece Hirsch spoke to Law360 about customer loyalty programs and California’s Consumer Privacy Act (CCPA), which mandates that businesses explain “how the financial incentive or price or service difference is reasonably related to the value of the consumer's data, including a good faith estimate of the value of the consumer's data and a description of the method the business used to calculate that value,” he shared. This is “one of the more problematic provisions,” Reece noted, and California retailers, hotels, restaurants, and others struggle with compliance as a result.
"While there is a section in the CCPA regulations devoted to calculating the value of consumer data, this remains a very challenging standard for businesses to apply in practice,” Reece said.