NY State Senate Bill 2023-S514

Senate Bill S514

2023-2024 Legislative Session

Relates to requiring manufacturers of smart speakers to obtain permission from users before storing recordings

download bill text pdf

Current 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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to consumer protection
Jan 04, 2023	referred to consumer protection

2023-S514 (ACTIVE) - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §349-b-2, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S7641
2021-2022: S154

2023-S514 (ACTIVE) - Summary

Requires manufacturers of smart speakers to obtain signed written permission from users before storing voice recordings.

2023-S514 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S514

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the general business law, in relation to requiring
manufacturers of smart speakers to obtain permission from users before
storing recordings

 
PURPOSE OR GENERAL IDEA OF BILL:

To require manufacturers of smart speakers to obtain permission from
users before retaining recordings.

 
SUMMARY OF PROVISIONS:

Section 1. The general business law is amended by adding a new section
349-b-2 defines the following terms:

a) Connected television;

b) Other connected device with a voice recognition feature;

c) Retained;

d) User;

e) Voice recognition feature; and

f) Voice recorded data.

Section 2(a). Prohibits a person or entity from providing the operation
of a voice recognition feature within this state without prominently
informing, during the initial setup or installation of a connected
device with a voice recognition feature, either the user or the person
designated by the user to perform the initial setup or installation of
the device.

Section 2(b)(c).Specifies that any actual recordings or transcriptions
collected through the operation of a voice recognition feature by the
manufacturer, or by a third party contracting with a manufacturer, of a
connected device with a voice recognition feature for the purpose of
improving the voice recognition feature, as specified, shall not be used
for any advertising purpose, retained, or shared with, or sold to a
third party, or both shared with, and sold to, a third party, unless the
consumer first provides affirmative written or electronic consent.

Section 2(e).A manufacturer shall only be liable for the functionality
provided at the time of sale and shall not be liable for functionality
provided by applications the user downloads and install or which are
maintained and controlled at another location by third party servers.

Section 3(a). Actions for relief pursuant to this section may be prose-
cuted exclusively in a court of competent jurisdiction in a civil action
by the Attorney General.

Section 3(b). A court of competent jurisdiction may enjoin any person or
entity who knowingly engages, has engaged, or proposes to engage in a
violation of this section.
Section 3(c). A person in violation of this section shall be liable for
a civil penalty not to exceed $2,500 for each connected television or
other connected device with voice recognition feature sold or leased in
violation of this section.

Section 4. This act shall take effect immediately.

 
JUSTIFICATION:

Smart speakers like the Amazon Echo and Google Home are growing rapidly
in popularity as more people are using them for everyday inquiries rang-
ing from turning on/off lights, starting complicated smart routines, to
getting traffic and weather updates, to playing back some upbeat tunes
while you're cooking dinner. But while these devices are incredibly
convenient when it comes to answering questions or performing tasks,
many people are concerned about the privacy risk that they present.
Amazon says Alexa "lives in the cloud and is always getting smarter."
But like many software tools built to learn from experience, humans are
doing some of the teaching.  Bloomberg recently reported that recordings
from these devices are transcribed and annotated by live people before
being fed back into the software. The purpose is to eliminate gaps in
the the voice assistant's understanding of human speech so it can better
respond to commands. But critics have said that customers have no idea
they are being recorded by the smart speakers.
(www.bloomberg.com/news/articles/2019-04-10/i s-anyone-listening-to-you-
on-alexa-a-globalteam-reviews-audio)

Workers sometimes pick up things that the users would probably rather be
private, such as people singing in the shower or a child screaming. In
Oregon, a couple said their Amazon Alexa powered devices recorded a
private conversation they were having and sent it to one of their
personal contacts. In Germany, 1,700 private voice recordings and other
telemetry data from Alexa was sent to an Amazon customer by accident.
The customer had requested a copy of his on personal data stored by
Amazon, and received the aforementioned recordings by accident. More
recently, Google came under fire when it was learned that Nest Secure
was equipped with a microphone from the moment it was first launched,
but did not disclose that capacity to customers.It was only when Google
Assistant functionality was enabled for the device that it was revealed
that the Nest Secure did indeed have a microphone all along.

The privacy of someone's residence is sacred and neither governments nor
corporations have a right to spy on citizens. By creating an opt-in
system for consumers to consent, regardless of when the device hears
certain "trigger" words designed to alert it to take action, New Yorkers
can continue to use these devices with greater assurance their privacy
is being protected.

 
PRIOR LEGISLATIVE HISTORY:

2021-22: S.154 (Thomas) / A.4137 (Lavine) - Referred to Consumer
Protection.

2019-20: S.7641 (Thomas)/A.8113 (Lavine) - Referred to Consumer
Protection.

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S514 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    514
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 4, 2023
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Consumer Protection
 
 AN ACT to amend the general  business  law,  in  relation  to  requiring
   manufacturers of smart speakers to obtain permission from users before
   storing recordings

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new section
 349-b-2 to read as follows:
   § 349-B-2. RECORDINGS BY SMART SPEAKERS. 1. FOR THE PURPOSES  OF  THIS
 SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "CONNECTED TELEVISION" MEANS A VIDEO DEVICE DESIGNED FOR HOME USE
 TO RECEIVE  TELEVISION SIGNALS AND REPRODUCE SUCH SIGNALS  ON  AN  INTE-
 GRATED,  PHYSICAL SCREEN DISPLAY THAT EXCEEDS TWELVE INCHES, EXCEPT THAT
 THIS TERM SHALL NOT INCLUDE A PERSONAL COMPUTER, PORTABLE DEVICE,  OR  A
 SEPARATE  DEVICE THAT CONNECTS PHYSICALLY OR WIRELESSLY TO A TELEVISION,
 INCLUDING, BUT NOT LIMITED TO, A SET-TOP BOX,  VIDEO  GAME  CONSOLE,  OR
 DIGITAL VIDEO RECORDER.
   (B)  "OTHER  CONNECTED  DEVICE WITH A VOICE RECOGNITION FEATURE" MEANS
 ANY DEVICE EQUIPPED WITH A VOICE RECOGNITION FEATURE SOLD IN THIS STATE,
 INCLUDING, BUT NOT LIMITED TO, A  WIRELESS  SPEAKER  AND  VOICE  COMMAND
 DEVICE  SOLD  IN  THIS  STATE  WITH AN INTEGRATED VIRTUAL ASSISTANT THAT
 OFFERS INTERACTIVE ACTIONS AND  HANDS-FREE  ACTIVATION,  OR  A  CELLULAR
 TELEPHONE, TABLET, OR OTHER DEVICE SOLD IN THIS STATE WITH AN INTEGRATED
 VIRTUAL  ASSISTANT THAT OFFERS  INTERACTIVE ACTIONS AND HANDS-FREE ACTI-
 VATION.
   (C) "RETAINED" MEANS SAVING, STORING, OR BOTH OF VOICE  RECORDED  DATA
 LONGER  THAN  THE MINIMUM TIME NECESSARY TO COMPLETE A REQUESTED COMMAND
 BY THE USER.
   (D) "USER" MEANS A PERSON WHO ORIGINALLY PURCHASES, LEASES,  OR  TAKES
 OWNERSHIP  OF  A  CONNECTED  TELEVISION OR OTHER CONNECTED DEVICE WITH A
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01660-01-3

 S. 514                              2
 
 VOICE RECOGNITION FEATURE OR ANOTHER PERSON DESIGNATED BY SUCH  USER  TO
 PERFORM  THE  INITIAL SETUP OR INSTALLATION OF SUCH CONNECTED TELEVISION
 OR OTHER CONNECTED DEVICE. A PERSON WHO IS INCIDENTALLY RECORDED WHEN  A
 VOICE  RECOGNITION FEATURE IS ACTIVATED BY A USER SHALL NOT BE DEEMED TO
 BE A USER.
   (E) "VOICE RECOGNITION FEATURE" MEANS  THE  FUNCTION  OF  A  CONNECTED
 TELEVISION  OR  OTHER  CONNECTED DEVICE WITH A VOICE RECOGNITION FEATURE
 THAT ALLOWS THE COLLECTION, RECORDING, STORAGE, ANALYSIS,  TRANSMISSION,
 INTERPRETATION,  OR  OTHER  USE  OF SPOKEN WORDS OR OTHER SOUNDS, EXCEPT
 THAT THIS TERM SHALL NOT INCLUDE VOICE COMMANDS THAT ARE NOT RECORDED OR
 TRANSMITTED BEYOND THE CONNECTED TELEVISION OR  OTHER  CONNECTED  DEVICE
 WITH A VOICE RECOGNITION FEATURE.
   (F)  "VOICE RECORDED DATA" MEANS AUDIO RECORDINGS OR TRANSCRIPTIONS OF
 SUCH RECORDINGS COLLECTED THROUGH THE OPERATION OF A  VOICE  RECOGNITION
 FEATURE BY THE MANUFACTURER OF A CONNECTED TELEVISION OR OTHER CONNECTED
 DEVICE WITH A VOICE RECOGNITION FEATURE.
   2.  (A)  NO  PERSON  OR  ENTITY SHALL PROVIDE THE OPERATION OF A VOICE
 RECOGNITION FEATURE WITHIN THIS  STATE  WITHOUT  PROMINENTLY  INFORMING,
 DURING  THE  INITIAL  SETUP OR INSTALLATION OF A CONNECTED TELEVISION OR
 OTHER CONNECTED DEVICE WITH A VOICE RECOGNITION FEATURE, EITHER THE USER
 OR THE PERSON DESIGNATED BY SUCH USER TO PERFORM THE  INITIAL  SETUP  OR
 INSTALLATION OF SUCH CONNECTED TELEVISION OR OTHER CONNECTED DEVICE WITH
 A VOICE RECOGNITION FEATURE OF SUCH VOICE RECOGNITION FEATURE.
   (B)  ANY  ACTUAL  RECORDINGS  OR  TRANSCRIPTIONS COLLECTED THROUGH THE
 OPERATION OF A   VOICE RECOGNITION FEATURE  BY  THE  MANUFACTURER  OF  A
 CONNECTED TELEVISION OR OTHER CONNECTED  DEVICE WITH A VOICE RECOGNITION
 FEATURE  FOR  THE  PURPOSE  OF IMPROVING THE VOICE RECOGNITION  FEATURE,
 INCLUDING, BUT NOT LIMITED TO,  THE  OPERATION  OF  AN  ACCESSIBLE  USER
 INTERFACE FOR PEOPLE WITH DISABILITIES, SHALL NOT BE USED FOR ANY ADVER-
 TISING  PURPOSE, RETAINED, OR SHARED WITH, OR SOLD TO, A THIRD PARTY, OR
 BOTH SHARED WITH, AND SOLD TO, A THIRD  PARTY,  UNLESS  THE  USER  FIRST
 PROVIDES AFFIRMATIVE WRITTEN OR ELECTRONIC CONSENT.
   (C)  ANY  ACTUAL  RECORDINGS  OR  TRANSCRIPTIONS COLLECTED THROUGH THE
 OPERATION OF A VOICE RECOGNITION FEATURE BY A  THIRD  PARTY  CONTRACTING
 WITH  A  MANUFACTURER FOR THE PURPOSE OF IMPROVING THE VOICE RECOGNITION
 FEATURE, INCLUDING, BUT NOT LIMITED TO, THE OPERATION OF  AN  ACCESSIBLE
 USER  INTERFACE  FOR PEOPLE WITH DISABILITIES, SHALL NOT BE USED FOR ANY
 ADVERTISING PURPOSE, RETAINED, OR SHARED  WITH,  OR  SOLD  TO,  A  THIRD
 PARTY,  OR BOTH SHARED WITH, AND SOLD TO, A THIRD PARTY, UNLESS THE USER
 FIRST PROVIDES AFFIRMATIVE WRITTEN OR ELECTRONIC CONSENT.
   (D) NO PERSON OR ENTITY SHALL COMPEL A MANUFACTURER  OR  OTHER  ENTITY
 PROVIDING THE OPERATION OF A VOICE RECOGNITION FEATURE TO BUILD SPECIFIC
 FEATURES FOR THE PURPOSE OF ALLOWING AN INVESTIGATIVE OR LAW ENFORCEMENT
 OFFICER TO MONITOR COMMUNICATIONS THROUGH THAT FEATURE.
   (E)  A MANUFACTURER SHALL ONLY BE LIABLE FOR FUNCTIONALITY PROVIDED AT
 THE TIME OF THE   ORIGINAL SALE  OF  A  CONNECTED  TELEVISION  OR  OTHER
 CONNECTED  DEVICE  WITH  A  VOICE  RECOGNITION  FEATURE AND SHALL NOT BE
 LIABLE FOR FUNCTIONALITY PROVIDED BY APPLICATIONS THAT THE USER  CHOOSES
 TO DOWNLOAD AND INSTALL OR WHICH ARE MAINTAINED AND CONTROLLED AT ANOTH-
 ER LOCATION BY THIRD PARTY SERVERS.
   3.  (A)  ACTIONS FOR RELIEF PURSUANT TO THIS SECTION MAY BE PROSECUTED
 EXCLUSIVELY IN A COURT OF  COMPETENT  JURISDICTION  IN  A  CIVIL  ACTION
 BROUGHT IN THE NAME OF THE PEOPLE OF THE STATE OF NEW YORK BY THE ATTOR-
 NEY  GENERAL. THIS SECTION SHALL NOT BE DEEMED TO CREATE A PRIVATE RIGHT
 OF ACTION, OR LIMIT ANY EXISTING PRIVATE RIGHT OF ACTION.
 S. 514                              3
 
   (B) A COURT OF COMPETENT JURISDICTION MAY ENJOIN ANY PERSON OR  ENTITY
 WHO  KNOWINGLY  ENGAGES,  HAS  ENGAGED,  OR  PROPOSES  TO  ENGAGE,  IN A
 VIOLATION OF THIS SECTION. SUCH  COURT MAY MAKE ANY ORDERS OR  JUDGMENTS
 AS MAY BE NECESSARY TO PREVENT A VIOLATION OF THIS SECTION.
   (C)  A  PERSON  WHO  KNOWINGLY  ENGAGES,  HAS  ENGAGED, OR PROPOSES TO
 ENGAGE, IN A VIOLATION OF THIS SECTION  SHALL  BE  LIABLE  FOR  A  CIVIL
 PENALTY  NOT  TO  EXCEED  TWO  THOUSAND  FIVE  HUNDRED  DOLLARS FOR EACH
 CONNECTED TELEVISION OR OTHER CONNECTED DEVICE WITH A VOICE  RECOGNITION
 FEATURE SOLD OR LEASED IN VIOLATION OF THIS SECTION.
   § 2. This act shall take effect immediately.

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