senate Bill S1420

Amended

Relates to the personal information of a credit or debit card holder

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Co-Sponsors

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 09 / Jan / 2013
    • REFERRED TO CONSUMER PROTECTION
  • 29 / Apr / 2013
    • 1ST REPORT CAL.442
  • 30 / Apr / 2013
    • 2ND REPORT CAL.
  • 01 / May / 2013
    • ADVANCED TO THIRD READING
  • 29 / May / 2013
    • AMENDED ON THIRD READING 1420A
  • 11 / Jun / 2013
    • AMENDED ON THIRD READING 1420B
  • 21 / Jun / 2013
    • COMMITTED TO RULES
  • 08 / Jan / 2014
    • REFERRED TO CONSUMER PROTECTION
  • 12 / May / 2014
    • 1ST REPORT CAL.602
  • 13 / May / 2014
    • 2ND REPORT CAL.
  • 14 / May / 2014
    • ADVANCED TO THIRD READING
  • 20 / Jun / 2014
    • COMMITTED TO RULES

Summary

Relates to the personal information of a credit or debit card holder: adds zip code, email address and home, cell and work telephone numbers to the personal information protected.

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Bill Details

Versions:
S1420
S1420A
S1420B
Legislative Cycle:
2013-2014
Current Committee:
Senate Rules
Law Section:
General Business Law
Laws Affected:
Amd ยง520-a, Gen Bus L
Versions Introduced in 2011-2012 Legislative Cycle:
S6041

Votes

10
0
10
Aye
0
Nay
1
aye with reservations
0
absent
0
excused
0
abstained
show Consumer Protection committee vote details

Sponsor Memo

BILL NUMBER:S1420

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:
2011-2012: S.6041 - Died in Committee

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1420

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by Sens. MONTGOMERY, KRUEGER -- read twice and ordered print-
  ed,  and  when  printed  to  be committed to the Committee on Consumer
  Protection

AN ACT to amend the general business law, in relation  to  the  personal
  information of a credit or debit card holder

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 3 of section 520-a of the general business law,
as amended by chapter 233 of the laws of 2007, is  amended  to  read  as
follows:
  3. No person, firm, partnership or corporation which accepts credit or
debit  cards for the transaction of business shall require the credit or
debit card holder to write OR ELECTRONICALLY  ENTER  on  the  credit  or
debit  card transaction form, nor shall it write [or], cause to be writ-
ten, OR ELECTRONICALLY ENTERED on such form or on any attachment  there-
to,  any  personal identification information, including but not limited
to the credit or debit card  holder's  address  [or],  ZIP  CODE,  EMAIL
ADDRESS  OR  telephone  [number]  NUMBERS, INCLUDING HOME, CELL AND WORK
TELEPHONE NUMBERS, that is not required by  the  credit  or  debit  card
issuer  to  complete  the  credit  or  debit card transaction; provided,
however, that the credit or debit card holder's  address  and  telephone
number  may  be  required [on such form or attachment thereto] where (i)
such information is necessary for shipping, delivery or installation  of
purchased  merchandise  or for special orders; or (ii) the person, firm,
partnership or corporation processes credit or debit  card  transactions
by mailing transaction forms to a designated bankcard center for settle-
ment.
  S 2. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04040-01-3

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