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On July 1, the California Attorney General’s Office can begin enforcing the California Consumer Privacy Act. But some companies may still be struggling with one requirement in particular. The CCPA mandates businesses publicly disclose the value that consumer data holds to their operation. But chances are that many organizations don’t have an exact dollar figure lying around somewhere.

The “financial incentives” requirement stems from a second round of CCPA revisions that were published by California’s attorney general in March. It prohibits businesses from offering a different price or service based on a consumer’s willingness to exchange personal data, unless that difference is “reasonably related to the value of the data.”

Jarno Vanto, a partner at Crowell & Moring, used video streaming services as an analogy. Users with a standard subscription typically have to engage with some kind of advertising during their viewing experience, while those who wish to forgo commercials altogether will likely have to pay a higher monthly rate in order to compensate for the lost advertising revenue.

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Frank Ready

Frank Ready is a reporter on the tech desk at ALM Media. He can be reached at [email protected]

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