Customer loyalty programs aren’t ‘discrimination’

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(Photo Above: Assemblywoman Autumn Burke)

A bill advancing in the California Assembly protects loyalty programs from the state’s Consumer Privacy Act. 

The privacy law, which was enacted last year but takes effect Jan. 1, defines differential pricing as discrimination. It creates a right for consumers to ask businesses to delete information about them while barring businesses from denying them special discounts or offers available to other customers. 

The law would undercut the value of customer loyalty programs, which typically reward regular purchases with discounts or other benefits. 

Assembly Bill 846, introduced by Assemblywoman Autumn Burke (D-Los Angeles), “authorizes a business to enter into a financial incentive program” if customers agree and only prohibits them from charging higher prices through those programs. 

The bill was approved by the Assembly’s Privacy and Consumer Protection Committee April 23 by a vote of 9-0 and advanced to an appropriations committee.  

The Home Furnishings Association applauds the author and supporters of this bill and urges its adoption by the California legislature.  

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