Notice of Financial Incentive

What it requires

A business that offers a financial incentive or a price or service difference must give a Notice of Financial Incentive where consumers will see it before opting in; online, that can be a link straight to the section of the privacy policy that holds it. The notice must summarize the offer, describe its material terms including the categories of personal information involved and the value of the consumer’s data, explain how to opt in, state the right to withdraw at any time and how to use it, and explain how the price or service difference is reasonably related to the value of the data, with a good-faith estimate of that value and the method used to calculate it. A business that offers no financial incentive owes no notice.

Regulation text

(c) The Notice of Financial Incentive shall be readily available where consumers will encounter it before opting-in to the financial incentive or price or service difference. [...] (d) A business shall include the following in its Notice of Financial Incentive: (1) A succinct summary of the financial incentive or price or service difference offered; (2) A description of the material terms of the financial incentive or price or service difference, including the categories of personal information that are implicated by the financial incentive or price or service difference and the value of the consumer’s data; (3) How the consumer can opt-in to the financial incentive or price or service difference; (4) A statement of the consumer’s right to withdraw from the financial incentive at any time and how the consumer may exercise that right; and (5) An explanation of how the price or service difference is reasonably related to the value of the consumer’s data, including: (A) A good-faith estimate of the value of the consumer’s data that forms the basis for offering the price or service difference; and (B) A description of the method(s) the business used to calculate the value of the consumer’s data.

California Consumer Privacy Act / California Privacy Rights Act, § 7016Read the full section from California Privacy Protection Agency (CalPrivacy)

How Privisy tests it