Financial incentive program terms disclosed; opt-in required

CCPA § 1798.125(b) permits financial incentive programs — discounts, loyalty points, free-tier upgrades in exchange for allowing data use — but imposes strict conditions: material terms disclosed before enrollment, a good-faith estimate of the monetary value of the consumer's data, explicit opt-in (not auto-enrollment), and the ability to withdraw at any time. A referral program that offers credits for sharing contact data with no policy disclosure, or a loyalty program that enrolls all registered users by default, violates all of these conditions simultaneously. The "value of personal information" disclosure is the most commonly missed requirement and the one regulators have specifically called out in guidance.

Add a Financial Incentive Programs section to your privacy policy and convert any auto-enrolled program to an explicit opt-in with a distinct UI action.

## Financial Incentive Programs (privacy policy section)

**[Program Name]**: We offer [benefit, e.g., 10% discount] to consumers who allow us
to use their email for personalized marketing.

Estimated value of consumer data: approximately $[X] per consumer per year,
calculated based on [methodology, e.g., cost of equivalent paid acquisition].

To join: click "Join [Program]" in account settings — affirmative consent required.
To withdraw: visit account settings at any time; withdrawal does not affect
your access to the standard service.

In the UI, replace any auto-enrollment on signup with a distinct checkbox or modal that requires a deliberate action. Never bundle consent to a financial incentive program into the main terms-of-service acceptance. See src/app/settings/page.tsx for the appropriate placement.