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: Distract or divert!
10.09.2019   #customer satisfaction #customer relationship management

Distract or divert!

How to engage customers at the checkout

Retailers and retail designers spend a considerable amount of time discussing and juggling a crucial aspect of the customer experience at the point of purchase: the checkout.To be fair, it’s not easy to turn the moment when customers have to ...

Thumbnail-Photo: Digital natives value brick and mortar stores …...
11.07.2019   #consulting #customer satisfaction

"Digital natives" value brick and mortar stores …

… more than their parents or grandparents

Despite clear differences in expectations among shoppers of different generations, almost half of retailers (44 percent) have made no progress in tailoring the in-store shopping experience according to a recent study conducted by Oracle NetSuite, ...

Thumbnail-Photo: retail trends 2-2019: focus sales promotion
03.06.2019   #customer satisfaction #customer relationship management

retail trends 2-2019: focus "sales promotion"

How to win, serve, and keep customers

Read our latest edition retail trends 2-2019 online as an e-paper. ...

Thumbnail-Photo: Organization Kroger Health helps diabetics
05.06.2019   #health management

Organization Kroger Health helps diabetics

The retail healthcare organization wants to help prevent diabetes with free screenings nationwide

According to the Centers for Disease Control and Prevention, over 84 million adults in the U.S. have prediabetes, yet the majority are unaware due to the lack of specific symptoms. Kroger Health, the healthcare arm of The Kroger Co., is leading a ...

Thumbnail-Photo: Crisis management in retail: Making a mountain out of a molehill –...
18.07.2019   #online trading #brick and mortar retail

Crisis management in retail: Making a mountain out of a molehill – what now?

How retailers should prepare for crisis communication

A lengthy order, a faulty delivery, an unsatisfactory customer service - all this is quickly evaluated and spread on the Internet and can have negative consequences for the retailer. We talked to Alexander De Ruiter from OBI4wan about the tasks ...

Thumbnail-Photo: Digital food retail: customers expect more personalization...
07.06.2019   #personalization #food delivery service

Digital food retail: customers expect more personalization

New research sponsored by precima shows retailers must act quickly to develop a detailed understanding of shopping missions.

The fast-changing dynamics of the food retailing environment continue to challenge companies to keep pace with fast-changing shopper demands. The latest of these shifting shopper requirements involves their behavior on digital platforms and is ...

Thumbnail-Photo: Five retailers are opening stores for every retailer closing stores...
28.08.2019   #retail #brick and mortar retail

Five retailers are opening stores for every retailer closing stores

New report by IHL Group debunks the retail apocalypse narrative

More than five retail chains are opening stores for every retailer that is closing stores in 2019, according to new research from IHL Group. This is up from 3.7 in 2018. The company also reports that the number of chains adding stores in 2019 has ...

Thumbnail-Photo: Beware of price promotions: “Don’t teach your customers to be...
27.05.2019   #sales promotion #price labels

Beware of price promotions: “Don’t teach your customers to be bargain hunters!“

Neuroscientist Kai-Markus Müller tells us about the impact of pricing

In a conversation with iXtenso, Professor Kai-Markus Müller, CEO of The Neuromarketing Labs gives great insights into how products and prices affect the brains of shoppers. How does he know? He is a neuroscientist and can look inside the ...

Thumbnail-Photo: British consumer behavior: ethical and Instagrammable...
06.08.2019   #marketing research #customer analysis

British consumer behavior: ethical and Instagrammable

Report tracking spending across major consumer markets

As Brexit rumbles on, British consumers continue to spend on brands and businesses that successfully tap into the Holy Trinity of current consumer behavior: the ‘experience economy’, the booming health and wellness movement, and the ...

Thumbnail-Photo: Choosing the right marketplace for your business: A profitable niche...
17.06.2019   #online trading #marketing research

Choosing the right marketplace for your business: A profitable niche product is key

"Platform strategies are critical for success," says Dr. Kai Hudetz of the IFH Cologne (Institute for Trade Research)

Ebay or Amazon, Zalando or Otto? Retailers have many options when it comes to an online marketplace where they can sell their merchandise. Success for retailers hinges on making good choices.Dr. Kai Hudetz, CEO of the IFH Cologne, gives tips on what ...

Supplier

POS TUNING Udo Voßhenrich GmbH & Co KG
POS TUNING Udo Voßhenrich GmbH & Co KG
Am Zubringer 8
32107 Bad Salzuflen
CCV Deutschland GmbH
CCV Deutschland GmbH
Gewerbering 1
84072 Au i.d.Hallertau
iXtenso - Magazin für den Einzelhandel
iXtenso - Magazin für den Einzelhandel
Celsiusstraße 43
53125 Bonn
HappyOrNot
HappyOrNot
Innere Kanalstraße 15
50823 Köln