A01393 Summary:

BILL NO    A01393 

SAME AS    Same as S 5801

SPONSOR    Brodsky (MS)

COSPNSR    Ortiz, Wright, Clark, Lancman, Schroeder, Perry, Millman, Colton,
           Maisel, Titus, Camara, Christensen, Gunther, Jacobs, Lupardo, Jaffee,
           O'Donnell, Gabryszak, Robinson, Cusick, Zebrowski, Kavanagh, Fields,
           Benedetto, Galef, Espaillat, Koon, Cahill, Peralta, Brook-Krasny,
           Hooper, Pretlow, Reilly, Titone, Rosenthal, Spano

MLTSPNSR   Boyland, Brennan, DelMonte, Destito, Dinowitz, Gordon, Gottfried,
           Heastie, Hevesi, Hikind, Hyer-Spencer, Kellner, Latimer, Markey,
           Mayersohn, McEneny, Peoples-Stokes, Pheffer, Schimel, Sweeney,
           Weisenberg

Add S390-bb, 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.

A01393 Actions:

BILL NO    A01393 

01/07/2009 referred to consumer affairs and protection
05/26/2009 reported referred to codes
01/06/2010 referred to consumer affairs and protection

A01393 Votes:

A01393 Memo:

 BILL NUMBER:  A1393

 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.