Poll question: Privacy and Loyalty

A California privacy law worries the NRF; how about you?

BY HBSDealer Staff

The California Consumer Privacy Act is a new law that takes effect in 2020. Proponents point to three benefits for Golden State consumers. It gives them ownership of their personal information – including the right to tell a business not to sell or share personal data. It gives them control. And it holds businesses responsible for safeguarding their personal information.

Sound good? Not to the National Retail Federation and the California Retailers Association.  These groups maintain that the law would take from consumers the value of data-driven targeted promotions, while putting retailers at risk of excessive fines.

“Virtually all retail customers are willing to yield some personal data in exchange for more personalized service or tangible benefits like discounts or instant coupons,” NRF Senior Vice President for Government Affairs David French said. “The California privacy law, as currently written, will end these popular and valuable benefits.”

[This week’s poll question: “What’s your take on the California Consumer Privacy Act?” Provide your input on the right side of the screen, or scroll down your mobile device.]

The law, which was passed last summer and is scheduled to take effect in January 2020, places sweeping restrictions on how retailers and other businesses can collect and use information about consumers.

According to the NRF and CRA, the new law may saddle businesses with penalties of between $100 and $750 per consumer per data breach incident. And in a letter to California Attorney General Xavier Becerra, the associations warned about “enormous and financially ruinous damage awards without regard to the size of the business, the circumstances of the breach or mitigating factors such as the good faith or level of cooperation of the business.”



Leave a Reply

No comments found



What's your take on the California Consumer Privacy Act?
  • Add your answer