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In This Update:
New Law in Effect for List Users
Congress and Children's List
A new California law took effect on January 1 that has at least some impact on any organization that shares personal information about Californians with another entity. Passed and signed into law in September 2003, the new law requires groups to disclose to customers upon request what types of information the business shares with third parties and which third parties got information about the individual over the preceding year. Organizations can avoid keeping the records required to fulfill this mandate, or disclosing their customers, if they give customers the opportunity to op-out of having their information shared.
Senator Liz Figueroa, a long time privacy advocate, was the author of the new law. Kids in the Know had worked throughout 2003 to make the measure less onerous. Figueroa has already introduced new legislation dealing with internet privacy in the 2005-2006 California legislative session.
Any business that has disclosed personal information about a customer to a third party within the immediately preceding calendar year and "reasonably knows" the information will be used for direct marketing purposes is required to abide by the new law. Personal information is defined very broadly.
Businesses can comply with the law by providing an opt-in or opt-out choice to consumers about the use of their personal information. They can also avoid the disclosure requirements by giving customers notice that they have the right to prevent disclosure of their personal information, and provide customers with a cost free way to take advantage of that right. Businesses with less than 20 full- or part-time employees are exempt from the bill.
Otherwise to comply with the bill businesses are required to provide customers, within 30 days of their request, the categories of information disclosed and the names and addresses of the third parties who received the information during the previous year.
The new law has been touted by privacy advocates, who have dubbed it the "Shine the Light" law. "Knowing which companies sell or share personal information with third parties helps individuals make better choices about companies with which they decide to do business," said Beth Givens, of the Privacy Rights Clearinghouse, in a recent statement.
New Congress to Consider Children's Lists
The 109th Congress was sworn last week with a busy legislative session anticipated. Though the 108th Congress ended without acting on legislation that would prohibit the sale of lists of children under the age of 16 without first getting parental consent, the authors of the bills -- Senator Ron Wyden (D-OR) and Congresswoman Darlene Hooley (D-OR) -- have vowed to reintroduce a version of the legislation and resume their push for support this year.
Under the legislation they introduced last year, virtually any group that uses lists of children and families would be harmed, especially if they get information from another entity or share information with others.
This year Senator Wyden will no longer be a member of the Senate Commerce Committee, the panel that would consider his legislation. But Senator Ted Stevens (R-AK), who was a chief co-sponsor of Wyden's bill, is now the Chairman of the Commerce Committee, and he will be influential in this debate.
Modifying the Legislation
Kids in the Know has developed recommended modifications to propose to the lawmakers. In several meetings with the staff of the bills' authors throughout last year, they were open to hearing concerns about their bills and interested in better understanding how it would adversely affect organizations that are playing a positive role in helping children and families. They have expressed a willingness to work with Kids in the Know to discuss proposed changes.
Despite the willingness of Wyden and Hooley to work with Kids in the Know, they are serious about promoting the concept and they intend to work together when reintroducing legislation this year.
Likewise, advocacy groups, most prominently the Nader group Commercial Alert, have continued their call for action on the bills. Commercial Alert and it's local allies have been promoting the Wyden-Hooley bills in the media and through their grassroots networks.
For more information about the issues outlined in this update – or for information
about other Kids in the Know’s activities – send an e-mail to info@kidsintheknow.org.
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