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S04600 Summary:

BILL NOS04600
 
SAME ASNo Same As
 
SPONSORGOUNARDES
 
COSPNSRADDABBO, BROUK, COMRIE, FERNANDEZ, GIANARIS, HINCHEY, HOYLMAN-SIGAL, KRUEGER, MAYER, MYRIE, SEPULVEDA, STAVISKY
 
MLTSPNSR
 
Amd Art 39-F Art Head, add §899-cc, Gen Bus L
 
Enacts the New York child data privacy protection act to prevent the exploitation of children's data; requires data controllers to assess the impact of its products on children for review by the bureau of internet and technology.
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S04600 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          4600
 
                               2025-2026 Regular Sessions
 
                    IN SENATE
 
                                    February 10, 2025
                                       ___________
 
        Introduced  by  Sens.  GOUNARDES,  ADDABBO,  BROUK,  COMRIE,  FERNANDEZ,
          GIANARIS, HINCHEY, HOYLMAN-SIGAL, KRUEGER, MAYER, MYRIE, SEPULVEDA  --
          read  twice  and  ordered printed, and when printed to be committed to
          the Committee on Internet and Technology
 
        AN ACT to amend the general business law, in relation  to  enacting  the
          New York child data privacy and protection act
 
          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  "New  York
     2  child data privacy and protection act".
     3    §  2.  Legislative  intent.   The legislature hereby finds that 95% of
     4  individuals under the age of 18 in the United States enjoy access to the
     5  Internet in their residences.
     6    The legislature further finds  that  American  teenagers  spend  seven
     7  hours  and 22 minutes on average per day browsing social media, and that
     8  53% of children will own a smartphone by the time they're  11  years  of
     9  age.
    10    The  legislature  recognizes  that,  while  broadband access is a core
    11  component of modern life and critical to the  ability  of  children  and
    12  young  people  to  feel  socially, emotionally, economically, and educa-
    13  tionally connected to the world around them, it is not without its risks
    14  and detriments.
    15    The legislature finds, for example, that teenagers who  spend  between
    16  five  to seven hours a day on the Internet are twice as likely to suffer
    17  from depression compared to those logged in for one hour a day.
    18    The legislature  further  finds  that,  according  to  recent  surveys
    19  conducted by a prominent social media platform, 34% of young adults feel
    20  uneasy  when they are not online, 40.6% complain that their sleep habits
    21  have been negatively affected by social  media,  and  35%  report  being
    22  cyberbullied on the Internet.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05607-02-5

        S. 4600                             2
 
     1    The  legislature  further  finds  that,  according  to  the  2021 U.S.
     2  Surgeon General Advisory on  Protecting  Youth  Mental  Health,  digital
     3  public  spaces  are  frequently  designed to maximize user engagement as
     4  opposed to safeguarding user health,  leading  to  negative  impacts  of
     5  digital  technologies and social media on the mental health and well-be-
     6  ing of adolescents.
     7    The legislature further finds that the pitfalls of  the  Internet  are
     8  not  limited  to  teenagers,  with young children potentially exposed to
     9  unsettling, dangerous, or age inappropriate content if not closely moni-
    10  tored by an adult.
    11    The legislature further finds that young children run a higher risk of
    12  coming  into  contact  with  strangers  online,  inadvertently   sharing
    13  personal  information  online,  inadvertently making in-app purchases or
    14  signing contracts, terms, or conditions  online,  becoming  subject  to,
    15  witnessing,  or  participating in potentially harmful conduct online, or
    16  purchasing drugs and other dangerous products advertised online or  sold
    17  through online platforms.
    18    The  legislature recognizes the role of lawmakers to guard against and
    19  mitigate these risks for children under the age of 18 wherever possible.
    20    The legislature finds that, while Congress passed the  landmark  Chil-
    21  dren's  Online  Privacy  Protection  Act  (COPPA)  in  1998 limiting the
    22  collection, use, and disclosure of data collected from children under 13
    23  years of age, requiring operators to retain  such  data  for  a  limited
    24  amount  of  time, and restricting certain marketing to children under 13
    25  years of age, multiple studies have found the vast majority of  applica-
    26  tion developers to be out of compliance with these rules.
    27    The  legislature  further finds that recent studies show at least two-
    28  thirds of applications transmit data about very young children to  third
    29  party marketing companies.
    30    The  legislature  further finds that President Biden recently declared
    31  the need to "strengthen privacy protections, ban targeted advertising to
    32  children, [and] demand tech companies stop collecting personal  data  on
    33  our children" in his 2022 State of the Union Address.
    34    The  legislature  further  finds that, subsequent to this address, the
    35  Federal Trade Commission announced that it will prioritize the  enforce-
    36  ment  and  modernization of COPPA to "crack down on companies that ille-
    37  gally surveil children online".
    38    The legislature further finds that there has been a flurry  of  recent
    39  legislative  activity at the state, federal, and international levels to
    40  address this issue, including the California Age-Appropriate Design Code
    41  Act, the Virginia's Consumer Data Protection Act, the  Colorado  Privacy
    42  Act,  the  Connecticut  Data Privacy Act, the Utah Consumer Privacy Act,
    43  several federal proposals to strengthen and improve COPPA, and the  UK's
    44  Age Appropriate Design Code.
    45    The  legislature hereby concludes that the state of New York too has a
    46  role to play in better preventing the exploitation of children's data in
    47  the modern era, and thus presents the New York Child  Data  Privacy  and
    48  Protection Act.
    49    §  3. The article heading of article 39-F of the general business law,
    50  as amended by chapter 117 of the laws of 2019, is  amended  to  read  as
    51  follows:
    52              NOTIFICATION OF UNAUTHORIZED ACQUISITION OF PRIVATE
    53       INFORMATION; DATA SECURITY PROTECTIONS; CHILD DATA PRIVACY AND
    54                               PROTECTION ACT
    55    §  4. The general business law is amended by adding a new section 899-
    56  cc to read as follows:

        S. 4600                             3
 
     1    § 899-cc. New York child data privacy and  protection  act.  1.  Defi-
     2  nitions.
     3    (a)  "Bureau"  shall mean the bureau of internet and technology in the
     4  office of the New York attorney general.
     5    (b) "Child" or "children" shall mean a  consumer  or  consumers  under
     6  eighteen years of age.
     7    (c) "Child user" shall mean a child accessing an online product with a
     8  device.
     9    (d) "Data breach" shall mean a breach of security leading to the acci-
    10  dental  or  unlawful destruction, loss, alteration, unauthorized disclo-
    11  sure of, or access to, personal data of child users transmitted, stored,
    12  or otherwise processed.
    13    (e) "Data controller" or "controller" shall mean a  natural  or  legal
    14  person  which, alone or jointly with others, determines the purposes and
    15  means of processing of the personal data of child users. This  includes,
    16  but  is not limited to, any business, website, or platform that collects
    17  data while selling electronic advertising space on its  platform  tailed
    18  to  any  one or any aggregation of the items of personal data defined in
    19  this section. No data controller is exempt from the requirements of this
    20  article if they are processing pseudonymized data,  whereby  "pseudonym-
    21  ized"  or  "pseudonymization" means the processing of personal data in a
    22  manner that renders the  personal  data  no  longer  attributable  to  a
    23  specific  child user without the use of additional information, provided
    24  that the additional information is kept separately  and  is  subject  to
    25  technical  and  organizational measures to ensure that the personal data
    26  is not attributed to an identified or identifiable child user.
    27    (f) "Data protection impact assessment" shall mean an internal  evalu-
    28  ation which the bureau requires entities to carry out in order to evalu-
    29  ate  the  level  of  risk  associated  with  such  entity's  collection,
    30  retention, processing, or sale of child user data.
    31    (g) "Online product" shall mean an online service, feature,  or  plat-
    32  form that is accessible to users with a digital device.
    33    (h)  "Personal  data"  or  "personal  data  identifier" shall mean any
    34  computerized information about a child user set forth in this  paragraph
    35  that  is  not  made  publicly  available through federal, state or local
    36  government agencies or any publicly available information, regardless of
    37  whether it is collected for the purpose of selling or transferring it to
    38  another entity. Personal data shall mean  information  that  identifies,
    39  relates  to,  describes,  or  is reasonably linked to a particular child
    40  user, including but not limited to:
    41    (i) physical address;
    42    (ii) legal name;
    43    (iii) alias;
    44    (iv) unique personal identifier;
    45    (v) online identifier;
    46    (vi) internet protocol address;
    47    (vii) e-mail address;
    48    (viii) account name;
    49    (ix) social security number;
    50    (x) place of birth;
    51    (xi) date of birth;
    52    (xii) phone number;
    53    (xiii) audio, visual, thermal, or olfactory data;
    54    (xiv) medical history, records of past medical treatment, or any diag-
    55  nosis of a physical or mental health condition or disability;

        S. 4600                             4
 
     1    (xv) educational information that is not  already  publicly  available
     2  through a local, state, or federal agency;
     3    (xvi) real time geolocation data or stored geolocation history;
     4    (xvii)  any  unique biometric data, body measurement, technical analy-
     5  sis, or measurements collected for the purpose of allowing a child  user
     6  to authenticate themself on a device, internet application, or web-based
     7  platform;
     8    (xviii)  names and identifying information of a child user's immediate
     9  family;
    10    (xix) internet or any other  electronic  network  activity,  including
    11  browsing  history,  search  history,  and  information regarding a child
    12  user's activity on a website or interaction with  an  electronic  adver-
    13  tisement;
    14    (xx)  any  other  information  that alone, or combined with any of the
    15  information described in this paragraph, could  be  reasonably  used  to
    16  identify an individual child user; and
    17    (xxi)  any inferences drawn from any of the combined forms of personal
    18  data that are used to create a profile of the child user reflecting  the
    19  child's  preferences,  choices,  characteristics,  psychological trends,
    20  intelligence, aptitude, and emotional or physical health or behavior.
    21    "Personal data" shall also include any information which creates prob-
    22  abilistic identifiers that can be used  to  isolate,  individualize,  or
    23  identify  a  child user or device to a degree of certainty more probable
    24  than not based on any item of personal data defined in this paragraph.
    25    (i) "Privacy by default" shall mean  that  the  online  product,  once
    26  released  to  the  public,  is  predesigned so that the strictest online
    27  privacy settings shall apply without any manual input required from  the
    28  user. In addition, "privacy by default" shall mean that the online prod-
    29  uct  shall  only  retain  personal data provided by a child user for the
    30  duration of time necessary to provide such product to such user.
    31    (j) "Process", "processing" or "processor" shall refer to an operation
    32  or set of operations performed on personal  data  or  sets  of  personal
    33  data, whether or not by automated means, on behalf of a data controller.
    34    (k)  "Sale" or "sold" shall mean the disclosure, dissemination, making
    35  available, release, transfer,  conveyance,  license,  rental,  or  other
    36  commercialization  of  child  user  data by a data controller to another
    37  party, whether commercialization occurs via access to raw  data  or  via
    38  use  of platform interface.  This definition shall include dissemination
    39  of child user data, orally, in writing, or by electronic or other means,
    40  for monetary or other valuable consideration, or otherwise for a commer-
    41  cial purpose, by a data controller to another party.
    42    (l) "Targeted digital advertising" shall mean an effort to  market  an
    43  online product that is directed at a specific child user or device based
    44  on:  the  personal  data  of such child user, a group of child users who
    45  share personal data identifiers as such term is defined in paragraph (h)
    46  of this subdivision, psychological profiling, or a unique identifier  of
    47  the  device;  or as a result of such child user or group of child user's
    48  use of such online product or any other online product.
    49    (m) "Targeted towards child users" shall mean that the online  product
    50  should know that its product is accessible to and used by children.  The
    51  bureau  may  consider  such  factors  as  the  online product's internal
    52  research about such product's users, existing evidence of user behavior,
    53  whether advertisements featured on the online product, including  third-
    54  party  advertisements,  are likely to appeal to children, the content of
    55  complaints received, as detailed in subparagraph (xiv) of paragraph  (a)
    56  of  subdivision  two  of  this  section, about the product from parents,

        S. 4600                             5
 
     1  children, or other individuals that indicate the age of users  accessing
     2  the  online  product, content and design features of the product such as
     3  animation, musical, or audio content, the presence of children or influ-
     4  encers  popular  with  children,  how  the  online product describes and
     5  promotes itself, and any other characteristic the bureau deems  relevant
     6  when determining how an online product should know that it is accessible
     7  to and used by children.
     8    2.  Data  protection  impact  assessments. (a) Each entity offering an
     9  online product that is targeted towards child users in this state  shall
    10  complete a data protection impact assessment. The data protection impact
    11  assessment shall include an analysis of the following:
    12    (i)  The  ways in which child users primarily interact with or consume
    13  the online product;
    14    (ii) The amount of time, on average, that a child  user  spends  using
    15  the  online  product  and whether the product includes any features that
    16  are designed to extend or increase such amount of time;
    17    (iii) The amount and type of data of child users collected,  retained,
    18  processed, and/or sold;
    19    (iv)  The purpose of the collection, retention, processing, or sale of
    20  such data;
    21    (v) If the entity is a data controller, the data sharing relationships
    22  the entity has with data processors or other third parties with whom  it
    23  shares the personal data of child users, including any data addendums or
    24  other  legal  policies  put  into place between the entity and the party
    25  receiving the data;
    26    (vi) Data security protections of the online  product  which  work  to
    27  prevent  and  respond to data breaches, as defined in subdivision one of
    28  this section;
    29    (vii) Any privacy policies, terms of service, or other legal  policies
    30  published  on the online product which relate to child users and whether
    31  they are written in a way that can reasonably be understood by  a  child
    32  user;
    33    (viii)  Whether  such policies or terms of service require approval of
    34  the parent or legal guardian of the child user;
    35    (ix) Community standards for published content on the online  product,
    36  and  whether  and  how  the  product removes content which violates such
    37  standards;
    38    (x) Whether such online product exposes children to potentially  harm-
    39  ful content;
    40    (xi)  Whether  the  use  of such online product could lead to children
    41  being targeted by a potentially harmful contact;
    42    (xii) Whether the online product could allow child users  to  witness,
    43  participate in, or be subject to potentially harmful conduct;
    44    (xiii)  Whether  the  online  product  shares information on the child
    45  user's activity on such product with such child's legal parent or guard-
    46  ian;
    47    (xiv) Opportunities  for  individuals  developing  an  online  product
    48  targeted  towards  child  users  to  voice  concerns  about such product
    49  before, during,  and  after  development  without  fear  of  retaliation
    50  against such individual;
    51    (xv)  Ways  in  which  an  entity  offering an online product targeted
    52  towards child users solicits feedback from children, parents, educators,
    53  health professionals, youth development professionals, and  the  general
    54  public on the online product;
    55    (xvi)  Whether and how child users can limit exposure to certain types
    56  of content;

        S. 4600                             6
 
     1    (xvii) The impact of the online product on a child user's  behavioral,
     2  emotional, and physical health; and
     3    (xviii)  Any  other  factors  the  bureau deems relevant to assess the
     4  material risk of the online product posed to child users.
     5    (b) Each entity completing  such  data  protection  impact  assessment
     6  shall  furnish  such assessment to the bureau of internet and technology
     7  within five days of receiving a request from the bureau for such assess-
     8  ment.  Any potential risks posed by the online product, including  risks
     9  of  noncompliance  with  any provision of this section or any other law,
    10  which are identified by the bureau shall be communicated by  the  bureau
    11  back to the entity, which shall then create a plan to mitigate or elimi-
    12  nate such risk.
    13    (c) The bureau shall provide technical, operational, and legal assist-
    14  ance to entities completing a data protection impact assessment upon the
    15  request  of  the  entity.  The  bureau  shall post guidelines for how to
    16  complete a data protection impact assessment, including  best  practices
    17  for  how  to  describe  data  processing, how to ensure data quality and
    18  minimization, how to provide privacy information to child users, how  to
    19  identify  and  assess  risks to child users, how to identify measures to
    20  mitigate such risks, and any other practices the bureau  deems  relevant
    21  in  its  guidance.   The bureau shall post such guidelines, along with a
    22  model data protection impact assessment template, on a publicly accessi-
    23  ble website.
    24    3. Ban on digital advertising.  No entity offering an  online  product
    25  targeted  towards  child  users in this state shall use targeted digital
    26  advertising unless consent for such advertising  is  obtained  from  the
    27  child's  parent  or legal guardian and the entity can demonstrate to the
    28  bureau that it has a compelling reason to offer such  advertising  which
    29  furthers the interest of the child.
    30    4.  Requirement  for  certain  settings.  (a) All entities offering an
    31  online product targeted towards child users in this state shall  utilize
    32  privacy  by  default,  unless  the  entity  can demonstrate a compelling
    33  reason to the bureau that an alternative default setting should be used.
    34    (b) All entities offering an online  product  targeted  towards  child
    35  users  must design and activate a feature which proactively alerts child
    36  users, in a manner likely to be understood by a child in the  age  range
    37  targeted  by  the  online  product,  when  their  personal data is being
    38  collected and for the duration of time such collection occurs.
    39    5. Deceased child users.  All  entities  offering  an  online  product
    40  targeted  towards child users in this state shall provide access to such
    41  user's account, metadata, and user history to a parent or legal guardian
    42  upon the death of such child user and request from such parent or guard-
    43  ian for such access.
    44    6. Law enforcement. All entities offering an online  product  targeted
    45  towards  child  users  in this state shall expedite and prioritize civil
    46  and criminal subpoenas and criminal warrants pertaining to  child  users
    47  who have been a victim of a crime with maximum exigence.
    48    7. Terms of service. (a) Any entity offering an online product target-
    49  ed towards child users in this state shall prominently display a privacy
    50  policy  and  terms of service, to include warnings about potential harms
    51  to child users, in a manner which clearly and concisely communicates  to
    52  a child user, using language likely to be understood by an individual in
    53  the age range targeted by such product.
    54    (b)  All  privacy  policies  and terms of service of an online product
    55  targeted towards child users in this state must be agreed to by both the

        S. 4600                             7
 
     1  child user and the parent or legal guardian of such  child  before  such
     2  product can become operational for the child user.
     3    (c) Any entity offering an online product targeted towards child users
     4  in this state shall clearly post that the terms of service do not impose
     5  binding obligations on the child user to the entity.
     6    8.  Notification  of  emergent problems. Any entity offering an online
     7  product targeted toward child users in this state shall create and prom-
     8  inently display a method for children, parents, and legal  guardians  to
     9  notify  such  entity of emergent problems with such product. Such method
    10  of notification shall not require the parent, guardian, or child user to
    11  have an account on such product in order to notify the entity. All elec-
    12  tronic notifications of emergent problems described in this  subdivision
    13  shall  be assigned an identification number and contemporaneously gener-
    14  ate an electronic receipt for the notifying individual.
    15    9. Public awareness  campaign.  Before  the  effective  date  of  this
    16  section  and  on  a  regular,  ongoing basis, the bureau shall execute a
    17  public  awareness  campaign  to  inform  entities  that  create  digital
    18  products targeted towards child users, parents, teachers, and the gener-
    19  al  public  of the provisions of this section in order to ensure maximum
    20  compliance thereof. Such campaign may  include  digital  content,  bill-
    21  boards,  posters,  pamphlets, targeted mailers, public service announce-
    22  ments, partnerships with local school districts, or any other method  to
    23  increase general awareness of the provisions of this section.
    24    10. Annual report. The bureau of internet and technology shall produce
    25  and transmit a biennial report to the temporary president of the senate,
    26  the speaker of the assembly, and the governor summarizing:
    27    (a)  the  number of entities completing data protection impact assess-
    28  ments and the results thereof;
    29    (b) the amount and type of child user data being collected,  retained,
    30  processed, and/or sold by such entities and the purpose thereof;
    31    (c)  the  volume  and nature of material risks posed to child users by
    32  such online products and measures taken to mitigate  or  eliminate  such
    33  risk;
    34    (d) the volume of notifications of emergent problems and a categorical
    35  description  of  each  type  of problem (i.e. material that led to child
    36  sexual abuse or grooming, instances of suicide or drug overdose  related
    37  to  use of online products by child users, instances of bullying facili-
    38  tated by online products);
    39    (e) a description of the policies and terms of service being presented
    40  to child users and their parents or legal guardians as well  as  accept-
    41  ance and denial rates of such policies and terms;
    42    (f)  the number of individuals or businesses found to be in noncompli-
    43  ance with this act pursuant to subdivision eleven of this section;
    44    (g) the number of individuals or businesses that have cured violations
    45  of this section of their own accord after being issued  notice  of  such
    46  violation by the bureau;
    47    (h)  the  number  of actions brought against individuals or businesses
    48  pursuant to paragraph (a) of subdivision eleven of this section and  the
    49  results of such actions;
    50    (i) a summary of the public education efforts undertaken by the bureau
    51  on  an  ongoing basis to alert the public and interested stakeholders of
    52  the provisions of this section, pursuant to  subdivision  nine  of  this
    53  section; and
    54    (j)  legislative recommendations for improvements to this or any other
    55  statute governing digital actors in this state.

        S. 4600                             8
 
     1    11. Penalties. (a) Whenever the attorney general  shall  believe  upon
     2  satisfactory  evidence  that  there is a violation of this section, such
     3  attorney general may bring an action in the name and on  behalf  of  the
     4  people  of the state of New York, in a court of justice having jurisdic-
     5  tion  to issue an injunction, to enjoin and restrain the continuation of
     6  such violation. Wherever the court shall determine in such action that a
     7  person or business violated this article knowingly  or  recklessly,  the
     8  court  may  impose  a civil penalty of up to twenty thousand dollars per
     9  instance of violation, provided that the latter amount shall not  exceed
    10  two hundred fifty million dollars.
    11    (b) The attorney general shall provide written notice to all people or
    12  businesses  of alleged violations at least ninety days before initiating
    13  any action described in paragraph (a) of this subdivision. The person or
    14  business shall then have an opportunity to cure any alleged violation of
    15  this section within such ninety days. If such alleged violation has been
    16  cured, the person or business shall send written notice to the  attorney
    17  general  who shall then retain discretion as to whether or not to pursue
    18  an action against such person or business.
    19    (c) The proceeds from penalties  collected  from  violations  of  this
    20  section,  pursuant  to  paragraph  (a)  of  this  subdivision,  shall be
    21  disbursed as follows:     (i) twenty percent of such proceeds  shall  be
    22  dedicated to the public awareness campaign described in subdivision nine
    23  of  this section; and (ii) the remaining eighty percent of such proceeds
    24  shall be dedicated to the enforcement of this section by the bureau.
    25    (d) An action may be brought against any person or  business  who  has
    26  knowingly  or recklessly violated this article if such action is brought
    27  on behalf of a child user or by next of kin of  a  deceased  child  user
    28  alleging  harm  from such violation. A plaintiff who prevails on a claim
    29  alleging a violation of this section is entitled to compensatory,  actu-
    30  al,  and punitive damages, injunctive relief, reasonable attorneys' fees
    31  and costs, and other such remedies as a court may deem appropriate.
    32    § 5. This act shall take effect on the one hundred eightieth day after
    33  it shall have become a law  and  shall  apply  to  all  online  products
    34  targeted  towards  child users in this state which are made available to
    35  the public on or after such effective date.  Effective immediately,  the
    36  addition,  amendment and/or repeal of any rules or regulations necessary
    37  for the implementation of this act on its effective date are  authorized
    38  to be made on or before such effective date.
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