Among the various requirements under US state comprehensive privacy laws, those that relate to loyalty programs may be some of the most confusing. Only three states — California, Colorado and Florida — regulate these programs. How they do this varies, and the level of detail contained in the laws also varies. In California and Florida, the laws’ impact on loyalty programs is in how they define “financial incentives.” These are times when a company “pays” a consumer for their personal information. This might occur with a straight cash payment. More common though, is optimized pricing or providing a higher quality of services in exchange for getting personal information. For those who offer loyalty programs, depending on how they are operated, they may viewed as be financial incentives under these laws. Colorado’s comprehensive privacy law, on the other hand, imposes obligations on companies that operate “bona fide loyalty programs.” These are defined as programs where information is processed solely to provide the program’s benefits. Benefits must be -like in California- better pricing or quality of services.Continue Reading The Comprehensive Privacy Law Deluge: Impact on Loyalty Programs
