BILL NUMBER:S6041

TITLE OF BILL:
An act
to amend the general business law, in relation to the personal
information of a credit or debit card holder

PURPOSE:
To protect consumers by prohibiting businesses from requiring personal
identification information to complete credit or debit card
transactions unless required by the credit or debit card issuer.

SUMMARY OF PROVISIONS:
Amends subdivision 3 of section 520-a of the general business law, as
amended by chapter 233 of the laws of 2007, to require that
businesses accepting credit or debit cards may not require the credit
or debit card holder to write or otherwise electronically enter any
personal identification information. Such personal identification
information includes but it not limited to address, zip code, email
address, and telephone numbers (home, cell, and work).

EXISTING LAW:
Current law prohibits retailers and businesses from requesting
personal information to complete a credit or debit card transaction.
However, personal information is loosely defined as address only.
Additionally, the current law does not prohibit businesses from
              

collecting electronically entered personal information.

JUSTIFICATION:
At present, many businesses in New York and other states across the
country require personal information, such as a zip code, when
consumers complete credit or debit card transactions, despite the
fact that such information is unnecessary when completing an
in-person transaction.
Such personal information can then be used in customized computer
software to perform reverse searches from databases that contain
millions of names, e-mail addresses, telephone numbers, and street
addresses that are indexed in a manner resembling a reverse
phonebook. The software can then match a person's name and zip code
with their previously undisclosed address, giving the business the
ability to market products to customers and to sell this information
to other businesses.

In February 2011, the Supreme Court of California held in Pineda v.
Williams-Sonoma Stores, Inc. that "personal identification
information," as the term is used in their state Credit Card Act,
includes a cardholder's zip code and that requesting and recording
such information violates the Credit Card Act. As such, businesses in
California can no longer require zip codes to complete
credit transactions unless required by the credit or debit card
issuer. A similar law suit was filed in Massachusetts in May 2011.

The language in the California Credit Card Act is nearly identical to
the language used in subdivision 3 of section 520-a of the general
business law in New York. By further defining what constitutes
"personal identification information," consumer interests in New York


can be protected. Additionally, by prohibiting such information from
being entered electronically, the statute becomes current with the
technological advances made since the statute was originally passed
in 1987.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately.