What are the laws that govern customer loyalty programs?

In California, the laws that govern customer loyalty programs are mainly contained in the California Business and Professions Code. This code outlines the restrictions and obligations that loyalty programs must adhere to in order to be legally compliant within the state. For example, loyalty programs must clearly indicate the terms and conditions associated with the program such as how rewards are earned and redeemed, in addition to any exclusions or limitations. Furthermore, the code requires that companies give adequate notice to consumers when they make major changes to the program, and that they provide a mechanism for those consumers to transfer their loyalty points or rewards. The code also states that customers must be able to redeem their loyalty rewards within a reasonable amount of time, and that they must be able to clearly view the expiration dates associated with their rewards. In addition, companies are required to obtain the consent of customers before using their information for promotional purposes. Lastly, companies must either provide a mechanism for customers to easily opt out of receiving marketing materials, or they must make it clear that consent will be assumed unless the customer chooses to opt out. Following these laws is essential for companies to operate a legally compliant customer loyalty program in California.

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What are the laws that govern customer loyalty programs?

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