Bill Text: CA AB370 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Consumers: internet privacy.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2013-09-27 - Chaptered by Secretary of State - Chapter 390, Statutes of 2013. [AB370 Detail]

Download: California-2013-AB370-Amended.html
BILL NUMBER: AB 370	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 18, 2013
	AMENDED IN SENATE  JUNE 3, 2013
	AMENDED IN ASSEMBLY  MARCH 19, 2013

INTRODUCED BY   Assembly Member Muratsuchi

                        FEBRUARY 14, 2013

   An act to amend  Sections 22575 and 22577  
Sec   tion 22575  of the Business and Professions Code,
relating to consumers.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 370, as amended, Muratsuchi. Consumers:  online
tracking.   internet privacy. 
   Existing law requires an operator of a commercial  Internet
 Web site or online service that collects personally
identifiable information through the Internet about consumers
residing in California who use or visit its commercial Web site or
online service to conspicuously post its privacy policy on its Web
site or online service and to comply with that policy. Existing law,
among other things, requires that the privacy policy identify the
categories of personally identifiable information that the operator
collects about individual consumers who use or visit its Web site or
online service and 3rd parties with whom the operator shares the
information.
   This bill would require an operator to disclose  whether
or not it honors a request from a consumer to disable online
tracking, as defined, of the consumer who visits or uses its
commercial Web site or online service. The bill would also require an
operator to disclose if it allows 3rd parties to conduct online
tracking on the commercial Web site or online service and whether
there is a means to disable this tracking.   how it
responds to "do not track" signals or other mechanisms that provide
consumers a choice regarding the collection of personally
identifiable information about an individual consumer's online
activities over time and across different Web   sites or
online services. The bill would require the operator to disclose
whether other parties may collect personally identifiable information
when a consumer uses the operator's Web site or service. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 22575 of the Business and Professions Code is
amended to read:
   22575.  (a) An operator of a commercial Web site or online service
that collects personally identifiable information through the
Internet about individual consumers residing in California who use or
visit its commercial Web site or online service shall conspicuously
post its privacy policy on its Web site, or in the case of an
operator of an online service, make that policy available in
accordance with paragraph (5) of subdivision (b) of Section 22577. An
operator shall be in violation of this subdivision only if the
operator fails to post its policy within 30 days after being notified
of noncompliance.
   (b) The privacy policy required by subdivision (a) shall do all of
the following:
   (1) Identify the categories of personally identifiable information
that the operator collects through the Web site or online service
about individual consumers who use or visit its commercial Web site
or online service and the categories of third-party persons or
entities with whom the operator may share that personally
identifiable information.
   (2) If the operator maintains a process for an individual consumer
who uses or visits its commercial Web site or online service to
review and request changes to any of his or her personally
identifiable information that is collected through the Web site or
online service, provide a description of that process.
   (3) Describe the process by which the operator notifies consumers
who use or visit its commercial Web site or online service of
material changes to the operator's privacy policy for that Web site
or online service.
   (4) Identify its effective date.
   (5) Disclose how the operator responds to Web browser "do not
track" signals or other  similar  mechanisms 
that provide consumers the ability to exercise choice  regarding
 online tracking, as defined in subdivision (e) of Section
22577, when an individual consumer uses or visits the commercial Web
site or online service   the collection of personally
identifiable information about an individual consumer's online
activities over time and across third-party Web sites or online
services, if the operator engages in that c   ollection
 .
   (6) Disclose whether other parties  on the operator's
commercial Web site or online service are or may be conducting online
tracking, as defined in subdivision (e) of Section 22577, and what,
if any, program, solution, protocol, or mechanism the operator
follows that offers consumers who use or visit its commercial Web
site or online service the ability to exercise a choice regarding
whether to permit this collection. The operator shall also offer
information regarding how the consumer can use the program, solution,
protocol, or mechanism   may collect personally
identifiable information about an individual consumer's online
activities over time and across different Web sites when a consumer
uses the operator's Web site or service  . 
   (7) An operator may satisfy the requirement of paragraph (5) by
providing a clear and conspicuous hyperlink in the operator's privacy
policy to an online location containing a description, including the
effects, of any program or protocol the operator follows that offers
the consumer that choice.  
  SEC. 2.    Section 22577 of the Business and
Professions Code is amended to read:
   22577.  For the purposes of this chapter, the following
definitions apply:
   (a) The term "personally identifiable information" means
individually identifiable information about an individual consumer
collected online by the operator from that individual and maintained
by the operator in an accessible form, including any of the
following:
   (1) A first and last name.
   (2) A home or other physical address, including street name and
name of a city or town.
   (3) An e-mail address.
   (4) A telephone number.
   (5) A social security number.
   (6) Any other identifier that permits the physical or online
contacting of a specific individual.
   (7) Information concerning a user that the Web site or online
service collects online from the user and maintains in personally
identifiable form in combination with an identifier described in this
subdivision.
   (b) The term "conspicuously post" with respect to a privacy policy
shall include posting the privacy policy through any of the
following:
   (1) A Web page on which the actual privacy policy is posted if the
Web page is the homepage or first significant page after entering
the Web site.
   (2) An icon that hyperlinks to a Web page on which the actual
privacy policy is posted, if the icon is located on the homepage or
the first significant page after entering the Web site, and if the
icon contains the word "privacy." The icon shall also use a color
that contrasts with the background color of the Web page or is
otherwise distinguishable.
   (3) A text link that hyperlinks to a Web page on which the actual
privacy policy is posted, if the text link is located on the homepage
or first significant page after entering the Web site, and if the
text link does one of the following:
   (A) Includes the word "privacy."
   (B) Is written in capital letters equal to or greater in size than
the surrounding text.
   (C) Is written in larger type than the surrounding text, or in
contrasting type, font, or color to the surrounding text of the same
size, or set off from the surrounding text of the same size by
symbols or other marks that call attention to the language.
   (4) Any other functional hyperlink that is so displayed that a
reasonable person would notice it.
   (5) In the case of an online service, any other reasonably
accessible means of making the privacy policy available for consumers
of the online service.
   (c) The term "operator" means any person or entity that owns a Web
site located on the Internet or an online service that collects and
maintains personally identifiable information from a consumer
residing in California who uses or visits the Web site or online
service if the Web site or online service is operated for commercial
purposes. It does not include any third party that operates, hosts,
or manages, but does not own, a Web site or online service on the
owner's behalf or by processing information on behalf of the owner.
   (d) The term "consumer" means any individual who seeks or
acquires, by purchase or lease, any goods, services, money, or credit
for personal, family, or household purposes.
   (e) The term "online tracking" means the practice of collecting
personally identifiable information about an individual consumer's
online activities over time and across different Web sites and online
services, for any use other than the internal business purposes of
the commercial Web site or online service through which the tracking
is conducted.
   (f) The term "internal business purposes" means those activities
necessary to maintain or analyze the functioning of the commercial
Web site or online service, perform network communications,
authenticate users of the commercial Web site or online service, and
ensure legal or regulatory compliance, provided that the information
collected for these activities is not used or disclosed for any other
purpose.          
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