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A new privacy bill cleared the California State Legislature last week and
will take effect on January 1, 2005.
The legislation requires businesses to provide, upon request by an individual,
a list of the types of personal information shared with third parties, and
the names and addresses of the recipients of the personal information. Businesses
must also post a privacy link on their Web site home page.
In a last-minute change, the bill was altered to let businesses avoid disclosing
what they share and who their customers are if they let a consumer opt out
of information sharing for marketing purposes. Joint marketing agreements
that restrict further sharing of personal information are not considered to
have disclosed information.
Businesses with fewer than 20 employees are also exempt. Individuals can only
request this once every calendar year.
Introduced by Senator Liz Figueroa, the legislation (SB 27) originally required
businesses to reveal where they got the personal information as well.
Anti-Spam Legislation Cleared
Meanwhile, perhaps the most far-reaching anit-spam legislation in the country
also cleared the California Legislature last week. It prohibits unsolicited
commercial e-mail advertisements, and allows ways to sue companies that initiate
or use so-called spam. The measure applies to any e-mails originating in California
or being sent to a California e-mail address. It would also prohibit the collection
of e-mail addresses for use in unsolicited email advertisements.
Unsolicited e-mails can be sent when there is a "preexisting or current business
relationship" as long as the recipient can opt out or "unsubscribe" for future
mailings.
"Commercial E-mail Advertisement" means any electronic mail message initiated
for the purpose of advertising or promoting the lease, sale, rental, gift
offer, or other disposition of any property, goods, services, or extension
of credit.
US House Overrules California
Financial Privacy Provision
Keeping true to form, California passed what The Los Angeles Times called
"the nation’s hardest hitting" financial-privacy law. The measure, adopted
August 27, went beyond federal law to prohibit financial institutions from
sharing information within their own corporation without a consumer’s approval.
But within weeks, the US House of Representatives passed legislation to supercede
the state restriction and allow financial institutions continue sharing information
with affiliates. Amending the Fair Credit Reporting Act last week, the bill
also contains provisions to protect consumers from identity theft. It would
forbid businesses from printing more than the last five digits of a credit
card number on a receipt, for example. The measure now moves to the Senate
Banking Committee, chaired by Senator Shelby (R-AL) a long time supporter
of strong privacy protections.
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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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