Organizations such as the National Retail Federation and the California Retailers Association are lobbying to prevent a new privacy law from banning retail loyalty programs in the Golden State.
The organizations worry that upcoming restrictions on data collection may prevent them from offering loyalty programs. In particular, they say, non-discriminatory provisions of the newly enacted California Consumer Privacy Act prohibit companies from treating those consumers who provide personal information differently from those who don't.
In a statement to California Attorney General Xavier Becerra, the NRF and the CRA said that retailers depend on the building of trust with consumers and, therefore, have a vested interest in protecting their privacy. Because of this, the organizations said, companies invest heavily in technology and systems to do that.
"... Retailers use consumer data for the principal purpose of serving their customers as they wish to be served," the statement said. "Retailers’ use of personal information is not an end in itself but primarily a means to achieving the goal of improved customer service. This differentiates retailers’ principal use of customer data from businesses – such as service providers, data brokers and other third parties unknown to the consumer – that primarily collect, process and sell consumer data as a business-to-business service."
The California Department of Justice is drafting regulations for the law, which passed in summer 2018 and takes effect January 2020.
