CCPA Explained: Part 3 The Right to Opt-Out and Offering Financial Incentives

 Oct 12, 2019 12:00 PM
by Derek Lackey

Still in Article 2 - Notices to Consumers, in this chapter we deal with the notices required to inform consumers of their right to opt-out as well as offering a Financial Incentive to sell their data. While it is legal to do so, certain notices and transparency are required.

§ 999.306. Notice of Right to Opt-Out of Sale of Personal Information

A   Pupose and General Principles
(1) to inform consumers of their right to restrict the sale of their data
(2) easy to understand Opt-out must be offered
a. use plain, straightforward language  - no legal jargon.
b. draw attention to the notice
c. present it in the languages the site normally uses.
d. be accessible to consumers with disabilities.

B A business that sells personal information must provide a clear notice to opt-out and make it easy to do so.
(1) An obvious "Do Not Sell My Info" button with links to what could be sold by category, linked to that section of the privacy policy.
(2) Develop an offline method of informing as well.
(3) All obligations must be met in an offline solution.

C Language to include in your opt-out
(1) a description of the consumer's righ to opt-out
(2) a link to the website where they can opt-out
(3) clear and simple instructions of how to opt-out
(4) create an audit trail of opt-outs
(5) a link to the Privacy Policy

D Exemptions
(1) if your orgainzation does not and will not sell personal information.
(2) This is stated in the Privacy Policy. It is important to note here that a consumer whos personal data is collected during a period when a "Do Not Sell My Info" is NOT posted is deemed to have opted-out of their data being sold.

E Opt-Out Button or logo
(1) an example will be provided
(2) this Button or logo should be linked to the Privacy Policy and the webpage that captures their preference.


§ 999.307. Notice of Financial Incentive

A   Purpose and General Principles
(1) the purpose of this notice to explain the value proposition to the consumer so they can make an informed decision.
(2) shall be easy to read and understand
a. use plain, straightforward language - no technical or legal jargon.
b. use a format that draws consumer's attention.
c. make avaible in languages used on the website.
d. be accessible to consumers with disabilities.
e. place the notice where people can read it prior to opting in, both online and offline.
(3) the description can be a link to the section of the Privacy Policy that describes these incentives and the value proposition (in plain language).

B Elements to include in the Notice of Financial Incentives
(1) clear "sccint" summary of the offer
(2) details of the material terms including the categories of personal information affected.
(3) easy directions to opt-out now or in the future.
(4) inform consumers of their right to opt-out and how to do so.
(5) an explanation of why Financial Incentives is permitted under CCPA
a. a good faithh estimate of the value of the consumer's data that forms the basis for the transaction.
b. how that value is calculated.


In our next chapter we will provide what you need to know to craft a Privacy Notice in this new data protected environment.


CCPA Explained: Article 1 General Provisions - Part 1 - Scope and Definitions

CCPA Explained: Article 2 - Notices to Consumers - Part 2 - Notice at Collection