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New York: Bill on consumer protection act introduced to State Senate

Senate Bill ('SB') 2998 for An Act to amend the general business law, in relation to establishing the online consumer protection act was introduced, on 26 January 2023, to the New York State Senate, and thereafter referred, on the same date, to the New York State Senate Committee on Consumer Protection. In particular, SB 2998 highlights that no publisher of a webpage or advertising network contracted with the publisher shall collect personally identifiable information for the purposes of online preference marketing, unless consumers provide their consent. Further, SB 2998 outlines that no publisher shall collect any other information from a consumer that is not personally identifiable information, subject to the above provision, unless the consumer is given an opportunity to opt-out of the use of such information for online marketing.

In addition, SB 2998 provides that advertising networks must post a clear and conspicuous notice on the home page of their website about their privacy policy and data collection and use practices. Likewise, SB 2998 notes that publishers of a webpage must, if contracting with an advertising network, post a clear and conspicuous notice that describes the collection and use of information by the advertising network. Moreover, SB 2998 clarifies that if the advertising network engages in online preference marketing, the privacy policies of both the advertising network and publisher must describe the ability to opt-out.

Finally, SB 2998 details that advertising networks must make reasonable efforts to protect the data collected or logged from ad delivery and reporting, as well as from loss, misuse, alteration, destruction, or improper use.

You can read SB 2998 and track its progress here.