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S00224 Summary:

Amd Art 39-F Art Head, add §899-bb, Gen Bus L
Restricts the disclosure of personal information by businesses.
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S00224 Text:

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                    IN SENATE
                                     January 9, 2019
        Introduced  by  Sen. HOYLMAN -- 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 restricting the
          disclosure of personal information by businesses

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  This act shall be known and may be cited as the "right to
     2  know act of 2019".
     3    § 2. The legislature hereby finds  and  declares  that  the  right  to
     4  privacy  is  a  personal  and  fundamental right protected by the United
     5  States Constitution. All individuals have a right of privacy in informa-
     6  tion pertaining to them.
     7    This state recognizes the importance of providing consumers with tran-
     8  sparency about how their personal information has been shared  by  busi-
     9  nesses.  For  free  market  forces to have a role in shaping the privacy
    10  practices and for "opt-in"  and  "opt-out"  remedies  to  be  effective,
    11  consumers must be more than vaguely informed that a business might share
    12  personal  information  with  third  parties.  Consumers  must  be better
    13  informed about what kinds of personal information are purchased by busi-
    14  nesses for direct marketing purposes. With  these  specifics,  consumers
    15  can knowledgeably choose to opt-in or opt-out or choose among businesses
    16  that disclose information to third parties for direct marketing purposes
    17  on the basis of how protective the business is of consumers' privacy.
    18    Businesses  are  now  collecting  personal information and sharing and
    19  selling it in ways not contemplated or properly covered by  the  current
    20  law. Some web sites are installing up to one hundred tracking tools when
    21  consumers  visit web pages and sending very personal information such as
    22  age, gender, race, income, health  concerns,  and  recent  purchases  to
    23  third-party advertising and marketing companies. Third-party data broker
    24  companies are buying, selling, and trading personal information obtained
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        S. 224                              2
     1  from  mobile  phones,  financial  institutions,  social media sites, and
     2  other online and brick and mortar companies.
     3    Some  mobile  applications  are  sharing personal information, such as
     4  location information, unique  phone  identification  numbers,  and  age,
     5  gender, and other personal details with third-party companies.
     6    Consumers  need  to  know  the ways that their personal information is
     7  being collected by companies and then shared or sold to third parties in
     8  order to properly protect their privacy, personal safety, and  financial
     9  security.
    10    §  3. The article heading of article 39-F of the general business law,
    11  as added by chapter 442 of the laws of  2005,  is  amended  to  read  as
    12  follows:
    14                           OF PRIVATE INFORMATION
    15    §  4. The general business law is amended by adding a new section 899-
    16  bb to read as follows:
    17    § 899-bb. Disclosure of a customer's personal information to  a  third
    18  party.  1. (a) A business that retains a customer's personal information
    19  shall make available to the customer free of charge access to, or copies
    20  of, all of the customer's personal information retained by the business.
    21    (b) A business that discloses a customer's personal information  to  a
    22  third  party  shall  make  the  following  information  available to the
    23  customer free of charge:
    24    (1) All categories of the customer's personal  information  that  were
    25  disclosed, including the categories set forth in paragraph (b) of subdi-
    26  vision four of this section.
    27    (2) The names and contact information of all of the third parties that
    28  received  the customer's personal information from the business, includ-
    29  ing the third party's designated request address or addresses if  avail-
    30  able.
    31    2.  A business required to comply with subdivision one of this section
    32  shall make the required information available by  one  or  more  of  the
    33  following means:
    34    (a)  By  providing a designated request address and, upon receipt of a
    35  request under this section to the designated request address,  providing
    36  the  customer  within  thirty days with the required information for all
    37  disclosures occurring in the prior twelve months, provided that:
    38    (1) if the business has an online privacy policy, that policy includes
    39  a description of a customer's rights pursuant to this  section  accompa-
    40  nied  by one or more designated request addresses; provided that a busi-
    41  ness with multiple online privacy policies must include this information
    42  in the policy of each product or service that collects personal informa-
    43  tion that may be disclosed to a third party;
    44    (2) the business ensures that all  persons  responsible  for  handling
    45  customer  inquiries  about  the business' privacy practices or the busi-
    46  ness' compliance with  this  section  are  informed  of  all  designated
    47  request addresses; and
    48    (3)  the  business  provides  information  pertaining  to the specific
    49  customer if that information is reasonably available  to  the  business,
    50  and  provides information in standardized format if information pertain-
    51  ing to the specific customer is not reasonably available.
    52    (b) For information required to be provided by paragraph (b) of subdi-
    53  vision one of this  section,  by  providing  the  customer  with  notice
    54  including  the  required information prior to or immediately following a
    55  disclosure.

        S. 224                              3
     1    (c) By providing the customer the disclosure required by Section  6803
     2  of  Title  15 of the United States Code, but only if the disclosure also
     3  complies with this section.
     4    3.  (a)  A  business  is not obligated to provide more than one notice
     5  under paragraph (b) of subdivision two  of  this  section  to  the  same
     6  customer  in  a  twelve-month  period  about  the disclosure of the same
     7  personal information to the same third party and is not obligated  under
     8  paragraph (a) of subdivision two of this section to respond to a request
     9  by the same customer more than once within a given twelve-month period.
    10    (b) A business is not obligated to provide information to the customer
    11  pursuant  to  subdivision  one  of  this  section if the business cannot
    12  reasonably verify that the individual making the request is the  custom-
    13  er.
    14    4.  For purposes of this section, the following terms have the follow-
    15  ing meanings:
    16    (a) "Business" means any person,  proprietorship,  firm,  partnership,
    17  association,  cooperative,  nonprofit organization or corporation organ-
    18  ized or existing under the laws of this state or any  other  state,  and
    19  doing  business  in  this  state,  exclusive  of  public corporations as
    20  defined pursuant to article two-A of the general construction law.
    21    (b) "Categories of personal information" includes, but is not  limited
    22  to, the following:
    23    (1)  Identity  information  including,  but not limited to, real name,
    24  alias, nickname, and user name.
    25    (2) Address information, including, but not limited to, postal address
    26  or e-mail.
    27    (3) Telephone number.
    28    (4) Account name.
    29    (5) Social security number or other  government-issued  identification
    30  number,  including, but not limited to, social security number, driver's
    31  license number, identification card number, and passport number.
    32    (6) Birthdate or age.
    33    (7) Physical characteristic information, including,  but  not  limited
    34  to, height and weight.
    35    (8)  Sexual  information, including, but not limited to, sexual orien-
    36  tation, sex, gender status, gender identity, and gender expression.
    37    (9) Race or ethnicity.
    38    (10) Religious affiliation or activity.
    39    (11) Political affiliation or activity.
    40    (12) Professional or employment-related information.
    41    (13) Educational information.
    42    (14) Medical information,  including,  but  not  limited  to,  medical
    43  conditions  or  drugs,  therapies, mental health, or medical products or
    44  equipment used.
    45    (15) Financial information, including, but  not  limited  to,  credit,
    46  debit,  or account numbers, account balances, payment history, or infor-
    47  mation related to assets, liabilities, or general creditworthiness.
    48    (16) Commercial information, including, but not limited to, records of
    49  property, products or services provided,  obtained,  or  considered,  or
    50  other purchasing or consumer histories or tendencies.
    51    (17) Location information.
    52    (18)  Internet  or  mobile  activity  information,  including, but not
    53  limited to, Internet protocol addresses or  information  concerning  the
    54  access or use of any Internet or mobile-based site or service.
    55    (19)  Content, including text, photographs, audio or video recordings,
    56  or other material generated by or provided by the customer.

        S. 224                              4
     1    (20) Any of the above categories of information as they pertain to the
     2  children of the customer.
     3    (c)  (1)  "Customer" means an individual who is a resident of New York
     4  state who provides personal information to a business, with  or  without
     5  an  exchange  of  consideration,  in  the course of purchasing, viewing,
     6  accessing, renting, leasing, or otherwise using real or personal proper-
     7  ty, or any interest therein, or obtaining a product or service from  the
     8  business including advertising or any other content.
     9    (2)  An individual is also the customer of a business if that business
    10  obtained the personal information of  that  individual  from  any  other
    11  business.
    12    (d)  "Designated  request  address"  means  a  mailing address, e-mail
    13  address, web page,  toll-free  telephone  number,  or  other  applicable
    14  contact  information, whereby customers may request or obtain the infor-
    15  mation required to be provided under subdivision one of this section.
    16    (e) (1)  "Disclose"  means  to  disclose,  release,  share,  transfer,
    17  disseminate,  make  available, or otherwise communicate orally, in writ-
    18  ing, or by electronic or any other means to any third party  as  defined
    19  in this section.
    20    (2) "Disclose" does not include:
    21    (A)  Disclosure of personal information by a business to a third party
    22  pursuant to a written contract authorizing the third  party  to  utilize
    23  the  personal information to perform services on behalf of the business,
    24  including maintaining or servicing accounts, providing customer service,
    25  processing or fulfilling orders  and  transactions,  verifying  customer
    26  information,   processing  payments,  providing  financing,  or  similar
    27  services, but only if (I) the contract prohibits the  third  party  from
    28  using  the personal information for any reason other than performing the
    29  specified service or  services  on  behalf  of  the  business  and  from
    30  disclosing any such personal information to additional third parties and
    31  (II) the business effectively enforces these prohibitions.
    32    (B)  Disclosure of personal information by a business to a third party
    33  based on a good-faith belief that disclosure is required to comply  with
    34  applicable law, regulation, legal process, or court order.
    35    (C)  Disclosure of personal information by a business to a third party
    36  that is reasonably necessary to address fraud,  security,  or  technical
    37  issues;  to  protect  the disclosing business' rights or property; or to
    38  protect customers or the public from illegal activities as  required  or
    39  permitted by law.
    40    (D)  Disclosure of personal information by a business to a third party
    41  that is otherwise lawfully available to  the  general  public,  provided
    42  that  the business did not direct the third party to the personal infor-
    43  mation.
    44    (f) "Personal information" means:
    45    (1) Any information that identifies or references a  particular  indi-
    46  vidual or electronic device, including, but not limited to, a real name,
    47  alias, postal address, telephone number, electronic mail address, Inter-
    48  net  protocol  address,  account  name, social security number, driver's
    49  license number, passport number, or any  other  identifier  intended  or
    50  able to be uniquely associated with a particular individual or device.
    51    (2) Any information that relates to or describes an individual if such
    52  information is disclosed in connection with any identifying or referenc-
    53  ing information as defined in subparagraph one of this paragraph.
    54    (g) (1) "Retains" means to store or otherwise hold information, wheth-
    55  er the information is collected or obtained directly from the subject of
    56  the information or from any third party.

        S. 224                              5

     1    (2) "Retains" does not include information that is stored or otherwise
     2  held  solely  for  one or more of the following purposes, so long as the
     3  information is deleted as soon as it  is  no  longer  needed  for  those
     4  purposes:
     5    (A)  To perform a service or complete a transaction initiated by or on
     6  behalf of the customer, including  maintaining  or  servicing  accounts,
     7  providing  customer  service, processing or fulfilling orders and trans-
     8  actions, verifying customer information, processing payments,  providing
     9  financing, or similar services.
    10    (B)  To  address  fraud, security, or technical issues; to protect the
    11  disclosing business' rights or property; or to protect customers or  the
    12  public from illegal activities as required or permitted by law.
    13    (C)  To comply with applicable law or regulation or with a court order
    14  or other legal process where the business has a good-faith  belief  that
    15  the law, regulation, court order, or legal process requires the informa-
    16  tion to be stored or held.
    17    (h)  "Third party" or "third parties" means one or more of the follow-
    18  ing:
    19    (1) A business that is a separate legal entity from the business  that
    20  has disclosed personal information.
    21    (2)  A  business that does not share common ownership or common corpo-
    22  rate control with the business that has disclosed personal information.
    23    (3) A business that does not share a brand  name  or  common  branding
    24  with  the business that has disclosed personal information such that the
    25  affiliate relationship is clear to the customer.
    26    5. The provisions of this section are severable. If any  provision  of
    27  this  section  or its application is held invalid, that invalidity shall
    28  not affect other provisions or applications that  can  be  given  effect
    29  without the invalid provision or application.
    30    6. A violation of this section constitutes an injury to a customer.  A
    31  civil  action  to  recover  penalties  may be brought by a customer, the
    32  attorney general, a district attorney, a city attorney, or a city prose-
    33  cutor, in a court of competent jurisdiction.
    34    § 5. This act shall take effect immediately.
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