senate Bill S1420B

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

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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

See Assembly Version of this Bill:
A7284B
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, A9048

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:S1420B

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 requiting 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, unless such information is solely for the
detection, investigation or prevention of fraud, theft, identity
theft, criminal activity or the enforcement of terms of sale. 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: A.9048- Referred to Consumer Protection/ S.6041- Referred
to Rules

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect on the ninetieth day after it shall have
become a law.

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

                                 1420--B
    Cal. No. 442

                       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 -- reported favorably from said committee, ordered to first
  and second report, ordered to a third  reading,  amended  and  ordered
  reprinted,  retaining its place in the order of third reading -- again
  amended and ordered reprinted, retaining its place  in  the  order  of
  third reading

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, ZIP CODE 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04040-07-3

S. 1420--B                          2

center  for settlement; OR (III) SUCH INFORMATION IS USED SOLELY FOR THE
DETECTION, INVESTIGATION OR PREVENTION OF FRAUD, THEFT, IDENTITY  THEFT,
CRIMINAL  ACTIVITY  OR  ENFORCEMENT  OF  TERMS  OF SALE. NOTHING IN THIS
SUBDIVISION  SHALL  PREVENT  A PERSON, FIRM OR CORPORATION WHICH ACCEPTS
CREDIT CARDS OR DEBIT CARDS FROM REQUESTING THAT A CUSTOMER  VOLUNTARILY
PROVIDE  PERSONAL  IDENTIFICATION  WHERE  THE USE OF SUCH INFORMATION IS
DISCLOSED TO SUCH CONSUMER.
  S 2. This act shall take effect on the ninetieth day  after  it  shall
have become a law.

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