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Non-Discrimination

Non-Discrimination Illustration

What is the Right to Non-Discrimination?

The California Consumer Privacy Act (CCPA) prohibits businesses from discriminating against consumers for exercising their CCPA rights. This means that businesses cannot:

  • Deny goods or services to the consumer
  • Charge different prices or rates for goods or services
  • Provide a different level or quality of goods or services
  • Suggest that the consumer will receive a different price or rate for goods or services or a different level or quality of goods or services

Exceptions to Non-Discrimination

A business may offer financial incentives, including payments to consumers as compensation, for the collection, sale, or deletion of personal information. A business may also offer a different price, rate, level, or quality of goods or services if that difference is reasonably related to the value provided to the business by the consumer's data.

Financial Incentive Programs

If a business offers financial incentives, it must:

  • Notify consumers of the financial incentives
  • Clearly describe the material terms of the financial incentive program
  • Explain how consumers can opt-in to the financial incentive program
  • Obtain the consumer's prior opt-in consent
  • Allow consumers to withdraw from the financial incentive program at any time

Calculating the Value of Consumer Data

Businesses that offer financial incentives must be able to explain how they calculate the value of the consumer's data. This calculation should consider:

  • The revenue or profit generated by the business from the use, sale, or retention of consumers' personal information
  • The expenses related to the collection, storage, and use of consumers' personal information
  • The value of the data to the business in terms of its operational efficiency
  • Any other practical and reasonably reliable method of calculation used in good faith

Examples of Permitted Practices

Examples of permitted practices under the non-discrimination provision include:

  • Offering loyalty programs that provide discounts, free items, or other rewards in exchange for collecting and using customer data, as long as consumers are properly notified and can opt-in
  • Charging a reasonable fee to cover the costs of providing personal information, deletion, or opt-out services
  • Offering basic services for free while charging for premium services that require additional personal information

Enforcement

The California Attorney General can enforce the non-discrimination provision of the CCPA. Violations can result in civil penalties of up to $2,500 for each violation or up to $7,500 for each intentional violation.