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A major privacy bill in the California State Legislature, SB 27, continues
to move closer to final passage. Introduced by Senator Liz Figueroa, the bill
passed the Senate in the spring, and has undergone a series of changes as
it worked its way through committees in the Assembly.
The original version of the bill would have required businesses to provide,
upon request, the name and address of where the business obtained information
about a consumer, copies of the information the business has, and the name
and address of the recipients of the personal information.
Two key Assembly committees have given it closer scrutiny. Over the past six
weeks, the measure has undergone several significant changes. After getting
better, the legislation is now very close to the original version introduced.
In the latest version, organizations are no longer required to reveal the
source of the personal information. But the provision requiring releasing
the specific personal information and the recipients of this information remains
in the legislation.
The current version would still cause burdensome, intrusive and costly administrative
and record-keeping burdens, and force businesses to reveal customers and relationships
with sources.
The bill is currently in the final stages of approval before likely passage
in the Assembly. Analysts in Sacramento say there will be increased pressure
to act on this bill, because the major privacy bill, dealing with financial
privacy, died earlier. That’s shifted the focus to SB 27 and makes passage
of some version of the measure likely.
Other Privacy Bills on Hold as State Legislative Sessions End
As fights continue in California, most state legislatures ended their work
for the year. The budget crisis that many were facing overwhelmed the legislatures
and may have helped keep lawmakers from focusing on privacy bills of concern
to Kids in the Know members. Many of these may be pushed again next year.
Top concerns included:
- New York. A bill (A 2148) to require express written consent from individuals
before an organization can sell, rent, or exchange in any way personal information
about them.
- New Jersey. The Adolescents’ Online Privacy Protection Act (A. 1327) would
have far-reaching implications for organizations that use Web sites for business
activities.
- North Carolina. Legislation to prohibit the use of data obtained through student-testing
programs, without express written consent of the parents or guardian.
FCC Issues New, More Stringent "Do-Not-Fax" Rules
Washington has been focused on spam, holding hearings and considering whether
legislation is needed. And Kids in the Know and its allies have long been
concerned about opt-in proposals that would harm the way organizations communicate
through the mail or on the Internet.
Now the Federal Communications Commission (FCC) has updated the rules and
regulations related to laws governing sending unsolicited faxes, under the
Telephone Consumer Protection Act (TCPA) of 1991.
One provision prohibits the use of any telephone facsimile machine or other
device to send an "unsolicited advertisement" to any telephone facsimile machine.
"Unsolicited Advertisements" are defined as correspondence that promotes any
goods or services or anything of a commercial nature. Essentially anything
for which a fee may be charged is covered. This includes any information on
seminars, conferences and books, among others. The key difference now is that
there is no exception for organizations that have an "established business
relationship" with current customers or organization members. Most non-profit
and membership associations, and many businesses, were previously exempt under
this regulation.
These rules show a continued shift in support of "opt-in" privacy policies.
The FCC specifically noted that "opt-out" options were not sufficient to comply
with the fax-related law, despite business and association claims of increased
costs and administrative burdens. The new regulations are scheduled to take
effect August 25 but the comment period remains open.
Still No Action on Federal Student-Privacy Regulations
In mid-July the Department of Education told Kids in the Know that they will
not issue draft regulations related to the student-privacy provisions of the
ESEA until the fall. Once draft regulations are issued, Kids in the Know will
have to move rapidly to work with the Department to modify the regulations
and ensure that they are not harmful to our members.
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Public Concern About Personal Information Remains High
Congress and state legislatures have remained focused on privacy issues. And
there’s a good reason why. The public’s attitudes towards these issues remain
important to politicians, who monitor polls closely. Two recent Harris polls
on privacy have shown:
- 79% of the respondents reported that it is extremely important to be in control
of who can get their personal information.
- 69% reported that it is extremely important to be able to control the collection
of personal information.
- 83% reported that they would end business dealings with a company if the company
"misused" customer information.
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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