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S02998 Summary:

Add §390-e, Gen Bus L
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.
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S02998 Actions:

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S02998 Text:

                STATE OF NEW YORK
                               2023-2024 Regular Sessions
                    IN SENATE
                                    January 26, 2023
        Introduced  by Sen. KAVANAGH -- 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  establishing
          the online consumer protection act
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Short title. This act shall be known and may  be  cited  as
     2  the "online consumer protection act".
     3    §  2.  Legislative  findings.  The  state  has  the authority to enact
     4  consumer regulations to protect the people of the state.  Recently,  the
     5  state  has enacted a series of laws to address problems arising from the
     6  ubiquity of the internet.  From  protecting  consumers  from  electronic
     7  breaches  of  security  to  enacting  laws  prohibiting  the practice of
     8  "phishing" -- an electronic form of identity theft -- the state  has  an
     9  obligation to enact sensible protections for the people.
    10    The  internet  age  has  changed, often for the better, the way people
    11  work, enjoy entertainment and interact with one another.  However,  with
    12  the  internet age new problems have arisen that must be addressed, chief
    13  among them, the loss of personal privacy. Recent examples, including one
    14  where search engine results were tracked to an individual,  have  illus-
    15  trated  that  a  person's  privacy can be breached easily and with grave
    16  consequences. There is a fundamental rift  between  tracking  technology
    17  and  consumers'  right  to  control  what data is collected and where it
    18  goes. Action must be taken in order to prevent more egregious violations
    19  of  privacy  occurring  including  price  discrimination,  exposure   of
    20  personal information to subpoenas and warrantless government access.
    21    This  act  establishes  provisions  to  allow consumers the ability to
    22  simply opt-out of being monitored on  the  internet.  Such  protections,
    23  akin  to the do not call registry, are a fair, sensible and common sense
    24  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.

        S. 2998                             2
     1    § 3. The general business law is amended by adding a new section 390-e
     2  to read as follows:
     3    §  390-e.  Online  consumer  protection.  1.  For the purposes of this
     4  section the following terms shall have the following meanings:
     5    (a) The term "online preference marketing" shall mean a type of adver-
     6  tisement delivery and reporting whereby data is collected  to  determine
     7  or  predict consumer characteristics or preference for use in advertise-
     8  ment delivery on the internet.
     9    (b) The term "personally identifiable  information"  shall  mean  data
    10  that,  by  itself,  can be used to identify, contact or locate a person,
    11  including name, address, telephone number, sensitive medical  or  finan-
    12  cial data, sexual behavior, sexual orientation, or email address.
    13    (c)  The  term "publisher" shall mean any company, individual or other
    14  group that has a website, webpage or other internet page.
    15    (d) The term "consumer" shall mean any natural person using or access-
    16  ing a website, webpage or online service that includes  the  display  of
    17  advertisements.
    18    (e)  The term "advertising network" shall mean any company, individual
    19  or other group that is  collecting  online  consumer  activity  for  the
    20  purposes of ad delivery.
    21    2.  No publisher of a webpage or advertising network contracted with a
    22  publisher shall collect  personally  identifiable  information  for  the
    23  purposes  of  online  preference marketing.   This subdivision shall not
    24  apply to the collection of personally identifiable information  provided
    25  to  a  publisher  of  a webpage or advertising network contracted with a
    26  publisher by the consumer with his or her consent.
    27    3. No publisher of a webpage or advertising network contracted with  a
    28  publisher  shall  collect  any other information from a consumer that is
    29  not defined as personally identifiable information pursuant to  subdivi-
    30  sion one of this section for the purposes of online preference marketing
    31  unless  the  consumer  is  given an opportunity to opt-out of the use of
    32  such information for online marketing purposes.
    33    4. An advertising network shall post clear and conspicuous  notice  on
    34  the  home  page of its own website about its privacy policy and its data
    35  collection and use practices related to its advertising delivery  activ-
    36  ities.  If  a  publisher has contracted with an advertising network, the
    37  publisher shall post clear and conspicuous notice on  its  website  that
    38  describes  the  collection  and  use  of  information by the advertising
    39  network. If the advertising network engages in online preference market-
    40  ing, the privacy policies  of  both  the  advertising  network  and  the
    41  publisher  shall  describe  the  ability to opt-out of online preference
    42  marketing by such network.
    43    5. An advertising network shall make reasonable efforts to protect the
    44  data it collects or logs as a result of ad delivery and  reporting  from
    45  loss, misuse, alteration, destruction or improper access.
    46    6.  The  attorney  general  may  bring  an action against a person who
    47  violates the provisions of this section:
    48    (a) to enjoin further violation of the provisions of this section; and
    49    (b) to recover up to two hundred fifty dollars for  each  instance  in
    50  which identifying information is collected from a person in violation of
    51  the provisions of subdivision two or three of this section.
    52    In  an  action  under  paragraph  (b) of this subdivision, a court may
    53  increase the damages up to three times the damages allowed by such para-
    54  graph where the defendant has been found to have engaged  in  a  pattern
    55  and  practice of violating the provisions of subdivision two or three of
    56  this section.

        S. 2998                             3
     1    7. Nothing in this section shall in any way limit rights  or  remedies
     2  which  are  otherwise available under law to the attorney general or any
     3  other person authorized to bring an action  under  subdivision  five  of
     4  this section.
     5    § 4. This act shall take effect on the one hundred eightieth day after
     6  it shall have become a law.
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