NY State Senate Bill 2009-S5801

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to consumer protection
Jun 05, 2009	referred to rules

2009-S5801 (ACTIVE) - Details

See Assembly Version of this Bill:: A1393
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §390-bb, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2011-2012: A4809
2013-2014: A1117
2015-2016: A5830
2017-2018: A3367, A9691
2019-2020: A3818
2021-2022: A405
2023-2024: A1366

2009-S5801 (ACTIVE) - Summary

Relates to establishing the online consumer protection act; defines terms; provides that an advertising network shall post clear and conspicuous notice on the home page of its own website about its privacy policy and its data collection and use practices related to its advertising delivery activities; makes related provisions.

2009-S5801 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5801

 TITLE OF BILL :
An act to amend the general business law, in relation to establishing
the online consumer protection act


 PURPOSE OR GENERAL IDEA OF BILL :
Called the Online Consumer Protection Act, the bill establishes rules
and privacy policies with respect to how website publishers and
advertising networks collect and disseminate online behavior of
consumers. It also requires that consumers are given adequate notice
of what how advertisers operate as well as a clear and conspicuous
mechanism on websites for consumers to opt-out of such online
advertising.

 SUMMARY OF SPECIFIC PROVISIONS :
Adds a new section 390-bb to the general business law. It has several
important requirements:

* It prohibits website publishers and advertising networks from
collecting personally identifying information online.

* Requires website publishers and advertising networks to disclose
data collection and use practices on its website.

* Requires website publishers that use advertising networks to state
so on its website. * Consumers have the ability to opt-out from any
profiling activity.

* Requires advertising networks to make reasonable efforts to protect
all data it collects.

 JUSTIFICATION :
This bill is a critical step in protecting personal privacy in the
Internet Age. This bill is necessary because in order to sustain the
viability of online business models, companies have had to move to
targeted online advertising.

This bill does not ban targeted online advertising. Instead the bill
codifies what the industry says it doesn't do; use personally
identifying information for purposes of advertising. We additionally
require websites and ad networks to allow individuals to say no to
being tracked. Like the "Do Not Call" Registry, this bill will empower
consumers to make decisions for themselves and their families. The
Internet industry relies too heavily on self-regulation and while they
should be applauded for their desire to update their regulations we
feel this law is vital to the protection of online consumers.

This bill allows the Internet industry to continue to innovate and
stay flexible in an industry where technology and standards change
rapidly, However, there is no time when we feel that notification of
tracking practices and an ability for the consumer to opt-out of being
tracked would be bad public policy. Self-regulation cannot universally
protect people's privacy. Some companies are better than others.
Moreover, the lack of a uniform policy on online privacy has resulted
in significant breaches in personal privacy. In 2006 an individual's
searches with one Internet search engine were used to identify her
personally.

New York has long been a leader in public policy. Our federal system
allows states to innovate and experiment in public policy. Waiting for
other states or for the Congress to act is not in the best interests
of New Yorkers. New York has an obligation to enact commonsense
consumer protections. The industry has stated that one state should
not address an issue that is as large in scope and as technically
complicated as online advertising. Additionally, there are claims that
the Dormant Commerce Clause prevents New York from acting in the first
place. This bill is not intended to usurp Constitutional provisions or
to hurt the Internet industry. Instead, the only aim is to protect
internet consumers. The fact that our proposal could influence other
states or the federal government is something to be viewed as positive
and not negative.

 LEGISLATIVE HISTORY :
New bill.

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
This act shall take effect on the 180th day after it shall have become
a law.

2009-S5801 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5801

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              June 5, 2009
                               ___________

Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the general business law, in  relation  to  establishing
  the online consumer protection act

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Short title. This act shall be known and may  be  cited  as
the "online consumer protection act".
  S  2.  Legislative  findings.  The  state  has  the authority to enact
consumer regulations to protect the people of the state.  Recently,  the
state  has enacted a series of laws to address problems arising from the
ubiquity of the internet.  From  protecting  consumers  from  electronic
breaches  of  security  to  enacting  laws  prohibiting  the practice of
"phishing" -- an electronic form of identify theft -- the state  has  an
obligation to enact sensible protections for the people.
  The  internet  age  has  changed, often for the better, the way people
work, enjoy entertainment and interact with one another.  However,  with
the  internet age new problems have arisen that must be addressed, chief
among them, the loss of personal privacy. Recent examples, including one
where search engine results were tracked to an individual,  have  illus-
trated  that  a  person's  privacy can be breached easily and with grave
consequences. There is a fundamental rift  between  tracking  technology
and  consumers'  right  to  control  what data is collected and where it
goes. Action must be taken in order to prevent more egregious violations
of  privacy  occurring  including  price  discrimination,  exposure   of
personal information to subpoenas and warrantless government access.
  This  act  establishes  provisions  to  allow consumers the ability to
simply opt-out of being monitored on  the  internet.  Such  protections,
akin  to the do not call registry, are a fair, sensible and common sense
way to give consumers a clear choice with respect to being monitored.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04806-01-9

S. 5801                             2

  S 3. The general business law is amended by adding a new section  390-
bb to read as follows:
  S  390-BB.  ONLINE  CONSUMER  PROTECTION.  1. FOR THE PURPOSES OF THIS
SECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A) THE TERM "ONLINE PREFERENCE MARKETING" SHALL MEAN A TYPE OF ADVER-
TISEMENT DELIVERY AND REPORTING WHEREBY DATA IS COLLECTED  TO  DETERMINE
OR  PREDICT CONSUMER CHARACTERISTICS OR PREFERENCE FOR USE IN ADVERTISE-
MENT DELIVERY ON THE INTERNET.
  (B) THE TERM "PERSONALLY IDENTIFIABLE  INFORMATION"  SHALL  MEAN  DATA
THAT,  BY  ITSELF,  CAN BE USED TO IDENTIFY, CONTACT OR LOCATE A PERSON,
INCLUDING NAME, ADDRESS, TELEPHONE NUMBER, SENSITIVE MEDICAL  OR  FINAN-
CIAL DATA, SEXUAL BEHAVIOR, SEXUAL ORIENTATION, OR EMAIL ADDRESS.
  (C)  THE  TERM "PUBLISHER" SHALL MEAN ANY COMPANY, INDIVIDUAL OR OTHER
GROUP THAT HAS A WEBSITE, WEBPAGE OR OTHER INTERNET PAGE.
  (D) THE TERM "CONSUMER" SHALL MEAN ANY NATURAL PERSON USING OR ACCESS-
ING A WEBSITE, WEBPAGE OR ONLINE SERVICE THAT INCLUDES  THE  DISPLAY  OF
ADVERTISEMENTS.
  (E)  THE TERM "ADVERTISING NETWORK" SHALL MEAN ANY COMPANY, INDIVIDUAL
OR OTHER GROUP THAT IS  COLLECTING  ONLINE  CONSUMER  ACTIVITY  FOR  THE
PURPOSES OF AD DELIVERY.
  2.  NO PUBLISHER OF A WEBPAGE OR ADVERTISING NETWORK CONTRACTED WITH A
PUBLISHER SHALL COLLECT  PERSONALLY  IDENTIFIABLE  INFORMATION  FOR  THE
PURPOSES  OF  ONLINE  PREFERENCE MARKETING.   THIS SUBDIVISION SHALL NOT
APPLY TO THE COLLECTION OF PERSONALLY IDENTIFIABLE INFORMATION  PROVIDED
TO  A  PUBLISHER  OF  A WEBPAGE OR ADVERTISING NETWORK CONTRACTED WITH A
PUBLISHER BY THE CONSUMER WITH HIS OR HER CONSENT.
  3. NO PUBLISHER OF A WEBPAGE OR ADVERTISING NETWORK CONTRACTED WITH  A
PUBLISHER  SHALL  COLLECT  ANY OTHER INFORMATION FROM A CONSUMER THAT IS
NOT DEFINED AS PERSONALLY IDENTIFIABLE INFORMATION PURSUANT TO  SUBDIVI-
SION ONE OF THIS SECTION FOR THE PURPOSES OF ONLINE PREFERENCE MARKETING
UNLESS  THE  CONSUMER  IS  GIVEN AN OPPORTUNITY TO OPT-OUT OF THE USE OF
SUCH INFORMATION FOR ONLINE MARKETING PURPOSES.
  4. AN ADVERTISING NETWORK SHALL POST CLEAR AND CONSPICUOUS  NOTICE  ON
THE  HOME  PAGE OF ITS OWN WEBSITE ABOUT ITS PRIVACY POLICY AND ITS DATA
COLLECTION AND USE PRACTICES RELATED TO ITS ADVERTISING DELIVERY  ACTIV-
ITIES.  IF  A  PUBLISHER HAS CONTRACTED WITH AN ADVERTISING NETWORK, THE
PUBLISHER SHALL POST CLEAR AND CONSPICUOUS NOTICE ON  ITS  WEBSITE  THAT
DESCRIBES  THE  COLLECTION  AND  USE  OF  INFORMATION BY THE ADVERTISING
NETWORK. IF THE ADVERTISING NETWORK ENGAGES IN ONLINE PREFERENCE MARKET-
ING, THE PRIVACY POLICIES  OF  BOTH  THE  ADVERTISING  NETWORK  AND  THE
PUBLISHER  SHALL  DESCRIBE  THE  ABILITY TO OPT-OUT OF ONLINE PREFERENCE
MARKETING BY SUCH NETWORK.
  5. AN ADVERTISING NETWORK SHALL MAKE REASONABLE EFFORTS TO PROTECT THE
DATA IT COLLECTS OR LOGS AS A RESULT OF AD DELIVERY AND  REPORTING  FROM
LOSS, MISUSE, ALTERATION, DESTRUCTION OR IMPROPER ACCESS.
  6.  THE  ATTORNEY  GENERAL  MAY  BRING  AN ACTION AGAINST A PERSON WHO
VIOLATES THE PROVISIONS OF THIS SECTION:
  (A) TO ENJOIN FURTHER VIOLATION OF THE PROVISIONS OF THIS SECTION; AND
  (B) TO RECOVER UP TO TWO HUNDRED FIFTY DOLLARS FOR  EACH  INSTANCE  IN
WHICH IDENTIFYING INFORMATION IS COLLECTED FROM A PERSON IN VIOLATION OF
THE PROVISIONS OF SUBDIVISION TWO OR THREE OF THIS SECTION.
  IN  AN  ACTION  UNDER  PARAGRAPH  (B) OF THIS SUBDIVISION, A COURT MAY
INCREASE THE DAMAGES UP TO THREE TIMES THE DAMAGES ALLOWED BY SUCH PARA-
GRAPH WHERE THE DEFENDANT HAS BEEN FOUND TO HAVE ENGAGED  IN  A  PATTERN
AND  PRACTICE OF VIOLATING THE PROVISIONS OF SUBDIVISION TWO OR THREE OF
THIS SECTION.

S. 5801                             3

  7. NOTHING IN THIS SECTION SHALL IN ANY WAY LIMIT RIGHTS  OR  REMEDIES
WHICH  ARE  OTHERWISE AVAILABLE UNDER LAW TO THE ATTORNEY GENERAL OR ANY
OTHER PERSON AUTHORIZED TO BRING AN ACTION  UNDER  SUBDIVISION  FIVE  OF
THIS SECTION.
  S 4. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Senate Bill S5801

Sponsored By

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

2009-S5801 (ACTIVE) - Details

2009-S5801 (ACTIVE) - Summary

2009-S5801 (ACTIVE) - Sponsor Memo

2009-S5801 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S5801

Share this bill

Sponsored By

Liz Krueger

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

2009-S5801 (ACTIVE) - Details

2009-S5801 (ACTIVE) - Summary

2009-S5801 (ACTIVE) - Sponsor Memo

2009-S5801 (ACTIVE) - Bill Text download pdf

Comments