News • 28.03.2019

Retailers ask California to preserve customer loyalty programs

New privacy law becomes applicable in January 2020

Judge’s gavel on an American flag; copyright: panthermedia.net/MicEnin...
Source: panthermedia.net/MicEnin

The National Retail Federation and the California Retailers Association today asked state officials to preserve popular customer loyalty programs, protect businesses from potentially ruinous financial penalties and address other provisions of a new privacy law set to take effect next year that could interfere with consumers’ expectations for customer service.

“Data drives retail and the customer experience,” NRF Senior Vice President for Government Affairs David French said. “Retailers are firmly on the side of consumers and collectively spend billions of dollars each year to enact policies and build systems to protect personal information. But we believe the California law will have far-reaching effects that will interfere with retailers’ ability to offer the customer service Californians demand.”

“Retailers know that establishing long-term relationships with their customers requires more than just providing merchandise at a price they can afford,” CRA President Rachel Michelin said. “It requires maintaining consumers’ trust. We look forward to engaging with the attorney general and the California legislature to ensure that this law and its regulations strike the proper balance.”

NRF and CRA today submitted comments to Attorney General Xavier Becerra as the state Department of Justice prepares to draft regulations for implementation of the California Consumer Privacy Act. 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. The letter emphasized that retailers gather data about consumers primarily to better serve them, in sharp contrast to other industries that gather consumer data primarily to monetize it by selling it to other businesses.

NRF and CRA are concerned about non-discrimination provisions of the law including a prohibition on retailers treating consumers who exercise privacy rights any differently from those who do not, which could put an end to retail loyalty programs that offer discounts to members.

“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,” French said. “The California privacy law, as currently written, will end these popular and valuable benefits.”

The new law may saddle businesses with penalties of between $100 and $750 per consumer per data breach incident.

Source: NRF

related articles:

popular articles:

Thumbnail-Photo: What retailers and brand experts need
08.02.2019   #brand management #event

What retailers and brand experts need

Retail & Brand Experience World Congress

Retail & Brand Experience World Congress (RBEWC) is the industry’s first-ever, all-encompassing event focusing on how retailers and brands can leverage experiential retail to enhance the shopping experience and reach a larger pool of ...

Thumbnail-Photo: Achieving goals with the right attitude
12.12.2018   #personnel management #security management

Achieving goals with the right attitude

Corporate health management is a process, not a one-time event

Employee satisfaction/engagement is critical to the success of any business, big or small. Customers notice if employees are dissatisfied with their jobs.Customer satisfaction, employee recruitment and hiring, employee retention and increasing sales ...

Thumbnail-Photo: Luxury fashion spending is on the rise online...
05.02.2019   #e-commerce #fashion

Luxury fashion spending is on the rise online

Nearly half of the online luxury fashion dollar sales come from footwear

U.S. online sales of luxury fashion items are showing significant growth coming from each of the key segments – footwear, accessories, and apparel – according to the new U.S. Luxury E-commerce Report from The NPD Group. Much of the ...

Thumbnail-Photo: PANORAMA Berlin January 15-17, 2019
19.12.2018   #event #fashion

PANORAMA Berlin January 15-17, 2019

The largest fashion marketplace in Europe

True to the meaning of the word panorama, PANORAMA BERLIN offers a broad overview of national and international mens and womenswear collections. Thereby, it enriches the international trade fair landscape consistently with strong and relevant new ...

Thumbnail-Photo: Holistic POS solutions in visual communication...
12.02.2019   #digital signage #Trade fair special EuroCIS 2019

Holistic POS solutions in visual communication

Product presentation and brand presence through signage

The effective placement of products at the POS is becoming increasingly difficult today due to the broad diversity of brands and the struggle for presentation area that goes along with it. Striking POS solutions are thus all the more important. ...

Thumbnail-Photo: U.S. prestige beauty industry sales grow six percent in 2018...
07.02.2019   #brick and mortar retail

U.S. prestige beauty industry sales grow six percent in 2018

Artisanal fragrance was the fastest growing aspect of the market

The U.S. prestige beauty industry reached 18.8 billion dollar in 2018, a six percent sales increase over 2017, according to The NPD Group. The skincare category grew by 13 percent and contributed 60 percent of the industry’s total gains; ...

Thumbnail-Photo: The new world of retail(ing)
28.01.2019   #price optimization #pricing management

The new world of retail(ing)

Effects of price discrimination and dynamic pricing

Dynamic pricing is a pricing strategy that plays an important role in retail. Instead of setting prices over a specific period of time – as is common practice in traditional price management -, dynamic pricing means prices can change on a ...

Thumbnail-Photo: Fewer consumers celebrating Valentine’s Day...
07.02.2019   #seasonal business #consumer demand

Fewer consumers celebrating Valentine’s Day

Those who do are spending more

Americans are expected to spend a record amount on Valentine’s Day this year despite a years-long decrease in the percentage of people celebrating the holiday, according to the annual survey released today by the National Retail Federation and ...

Thumbnail-Photo: Retail jobs grew nearly 15,000 in January over December...
07.02.2019   #retail #economy

Retail jobs grew nearly 15,000 in January over December

The economy seems to be in a good place

Retail industry employment in January was down by 15,100 jobs unadjusted from a year earlier but increased 14,800 jobs seasonally adjusted from December, the National Retail Federation said today. The retail numbers, which exclude automobile ...

Thumbnail-Photo: Digital Sales Summit in Hannover
08.01.2019   #e-commerce #digitization

Digital Sales Summit in Hannover

The E-Commerce Event

The Digital Sales Summit will be held for the first time in Hanover on 21 February.An extraordinary location and a LineUp which you have never seen before in the eCommerce industry, this is the easiest way to describe the Digital Sales Summit.In his ...

Supplier

Westiform GmbH & Co. KG
Westiform GmbH & Co. KG
Kinzigtalstrasse 2
77799 Ortenberg