NY State Senate Bill 2021-S272A

Senate Bill S272A

2021-2022 Legislative Session

Requires retailers to post warning signs of the tracking of customers through cell phones or other electronic devices

download bill text pdf

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 03, 2022	committed to rules
May 05, 2022	advanced to third reading
May 04, 2022	2nd report cal. amended 272a
May 03, 2022	1st report cal.1018
Jan 05, 2022	referred to consumer protection
Jan 06, 2021	referred to consumer protection

Votes

- May 3, 2022 - Consumer Protection Committee Vote
  S272A
  
  6
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Consumer Protection Committee Vote: May 3, 2022
      
      aye (6)
      
      Cleare
      
      Kavanagh
      
      Mattera
      
      Myrie
      
      Reichlin-Melnick
      
      Thomas
      
      aye wr (1)
      
      Tedisco

Bill Amendments

Original

A (Active)

2021-S272 - Details

See Assembly Version of this Bill:: A589
Current Committee:: Senate Rules
Law Section:: General Business Law
Laws Affected:: Add §390-d, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2013-2014: A8234
2015-2016: A1583
2017-2018: A4719
2019-2020: S3147, A597
2023-2024: S2404, A1766

2021-S272 - Summary

Requires retailers to post warning signs of the tracking of customers through cell phones or other electronic devices; provides for civil penalties.

2021-S272 - Sponsor Memo

                                
 
BILL NUMBER: S272

SPONSOR: MYRIE
 
TITLE OF BILL:

An act to amend the general business law, in relation to requiring
retailers to post warning signs of the tracking of customers through
cell phones or other electronic devices

 
PURPOSE:

This bill requires businesses to fully disclose the presence of a
customer tracking system within their store and provide a way for
customers to opt-out of such tracking.

 
SUMMARY OF PROVISIONS:

Section one amends the general business law by adding a new section
390-d.

Section two sets forth the effective date.

 
JUSTIFICATION:

A number of stores have recently reported that they are either exper-
imenting with or actively using technology that, through an individual
cell phone's Wi-Fi system, tracks that customer's movement and actions
around the store. Tech companies are being hired by businesses to use
this technology to learn more about the customers that visit stores and
their habits while within. Within a store numerous Wi-Fi sensors would
be placed in various locations and using an individual's cell phone or
other device's media access control (MAC) which gives off a personal
signal when searching for Wi-Fi, the sensors can "monitor" an individ-
ual. Thus, any person with a Wi-Fi-enabled phone is automatically
tracked as they move through the store. Information about how frequently
that specific MAC address visits the store, which departments it visits
when it is in the store, how long it stays in each department, and how
long it stays in the store, among other details, are what this system is
monitoring and recording.

Competition among businesses is ever-present and store owners consist-
ently seek out ways to entice new customers and keep those they already
have, but means of doing so which encroach on individual's privacy
should be fully disclosed. If customers are unaware that they are being
tracked and monitored, even though remaining nameless, that business has
violated their trust and their expectation of privacy as they move
through the store. in addition, this brings up the fear of what might be
done with the data once it is collected. Whether the property of the
tech company or the individual, business, this information belongs to
them once it is collected and they are free to sell it or use it for
other means.

 
LEGISLATIVE HISTORY:

2019-20: A597 - Referred to Consumer Affairs and Protection/ 53147 -
Referred to Consumer Protection

2017-18: A.4719 - Referred to Consumer Affairs and Protection

2015-16: A.1583 - Referred to Consumer Affairs and Protection

2013-14: A.8234-A - Reported to Rules

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
This bill shall take effect on the ninetieth day after it shall have
become a law.

2021-S272 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    272
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sen.  MYRIE  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Consumer Protection
 
 AN ACT to amend the general  business  law,  in  relation  to  requiring
   retailers  to  post warning signs of the tracking of customers through
   cell phones or other electronic devices
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new section
 390-d to read as follows:
   §  390-D.  POSTING  OF  WARNING  SIGNS BY RETAILERS TRACKING CUSTOMERS
 THROUGH CELL PHONES OR OTHER ELECTRONIC DEVICES. 1.  ANY  RETAILER  THAT
 TRACKS A CUSTOMER BY USE OF THE CUSTOMER'S CELL PHONE OR ANY OTHER ELEC-
 TRONIC  DEVICE  WHILE  THE  CUSTOMER  IS  IN  THEIR  ESTABLISHMENT SHALL
 CONSPICUOUSLY POST A WARNING SIGN AT EACH ENTRANCE INDICATING THAT  SUCH
 RETAILER  PERFORMS  SUCH  TRACKING. SUCH WARNING SIGN SHALL ALSO PROVIDE
 INFORMATION FOR CUSTOMERS WHO WISH TO OPT OUT OF THE TRACKING.
   2. ANY RETAILER THAT VIOLATES THIS SECTION SHALL BE SUBJECT TO A CIVIL
 PENALTY OF NOT MORE THAN ONE HUNDRED DOLLARS FOR  THE  FIRST  VIOLATION,
 NOT  MORE  THAN  TWO HUNDRED FIFTY DOLLARS FOR THE SECOND VIOLATION, AND
 NOT MORE THAN FIVE HUNDRED DOLLARS FOR EACH  VIOLATION  THEREAFTER.  THE
 PROVISIONS  OF  SUBDIVISION  ONE OF THIS SECTION MAY BE ENFORCED CONCUR-
 RENTLY BY THE DIRECTOR OF A MUNICIPAL CONSUMER AFFAIRS OFFICE, OR BY THE
 TOWN ATTORNEY, CITY CORPORATION COUNSEL, OR OTHER LAWFUL DESIGNEE  OF  A
 MUNICIPALITY  OR  LOCAL  GOVERNMENT, AND ALL MONEYS COLLECTED THEREUNDER
 SHALL BE RETAINED BY SUCH MUNICIPALITY OR LOCAL GOVERNMENT.
   3. FOR PURPOSES OF THIS SECTION "TRACKING" INCLUDES, BUT IS NOT LIMIT-
 ED TO, SITUATIONS WHERE RETAILERS TRACK A PERSON'S  MOVEMENT  THROUGHOUT
 THE  ESTABLISHMENT  FOR  PURPOSES OF STORING OR SELLING SUCH INFORMATION
 PERTAINING TO SUCH PERSON. "TRACKING" DOES NOT INCLUDE THE USE OF  ELEC-
 TRONIC DEVICES THAT ARE NOT UNIQUE TO A PARTICULAR PERSON.
   §  2.  This  act shall take effect on the ninetieth day after it shall
 have become a law.

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00449-01-1

2021-S272A (ACTIVE) - Details

See Assembly Version of this Bill:: A589
Current Committee:: Senate Rules
Law Section:: General Business Law
Laws Affected:: Add §390-d, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2013-2014: A8234
2015-2016: A1583
2017-2018: A4719
2019-2020: S3147, A597
2023-2024: S2404, A1766

2021-S272A (ACTIVE) - Summary

Requires retailers to post warning signs of the tracking of customers through cell phones or other electronic devices; provides for civil penalties.

2021-S272A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S272A

SPONSOR: MYRIE
 
TITLE OF BILL:

An act to amend the general business law, in relation to requiring
retailers to post warning signs of the tracking of customers through
cell phones or other electronic devices

 
PURPOSE:

This bill requires businesses to fully disclose the presence of a
customer tracking system within their store and provide a way for
customers to opt-out of such tracking.

 
SUMMARY OF PROVISIONS:

Section one amends the general business law by adding a new section
390-d.

Section two sets forth the effective date.

 
JUSTIFICATION:

A number of stores have recently reported that they are either exper-
imenting with or actively using technology that, through an individual
cell phone's Wi-Fi system, tracks that customer's movement and actions
around the store. Tech companies are being hired by businesses to use
this technology to learn more about the customers that visit stores and
their habits while within. Within a store numerous Wi-Fi sensors would
be placed in various locations and using an individual's cell phone or
other device's media access control (MAC) which gives off a personal
signal when searching for Wi-Fi, the sensors can "monitor" an individ-
ual. Thus, any person with a Wi-Fi-enabled phone is automatically
tracked as they move through the store. Information about how frequently
that specific MAC address visits the store, which departments it visits
when it is in the store, how long it stays in each department, and how
long it stays in the store, among other details, are what this system is
monitoring and recording.

Competition among businesses is ever-present and store owners consist-
ently seek out ways to entice new customers and keep those they already
have, but means of doing so which encroach on individual's privacy
should be fully disclosed. If customers are unaware that they are being
tracked and monitored, even though remaining nameless, that business has
violated their trust and their expectation of privacy as they move
through the store. in addition, this brings up the fear of what might be
done with the data once it is collected. Whether the property of the
tech company or the individual, business, this information belongs to
them once it is collected and they are free to sell it or use it for
other means.

 
LEGISLATIVE HISTORY:

2019-20: A597 - Referred to Consumer Affairs and Protection/ 53147
Referred to Consumer Protection

2017-18: A.4719 - Referred to Consumer Affairs and Protection

2015-16: A.1583 - Referred to Consumer Affairs and Protection

2013-14: A.8234-A - Reported to Rules

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
This bill shall take effect on the ninetieth day after it shall have
become a law.

2021-S272A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  272--A
     Cal. No. 1018
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sen.  MYRIE  -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Consumer  Protection  --
   recommitted to the Committee on Consumer Protection in accordance with
   Senate  Rule  6,  sec.  8  --  reported favorably from said committee,
   ordered to first report, amended on first report, ordered to a  second
   report  and  ordered  reprinted,  retaining  its place in the order of
   second report
 
 AN ACT to amend the general  business  law,  in  relation  to  requiring
   retailers  to  post warning signs of the tracking of customers through
   cell phones or other electronic devices
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new section
 390-d to read as follows:
   §  390-D.  POSTING  OF  WARNING  SIGNS BY RETAILERS TRACKING CUSTOMERS
 THROUGH CELL PHONES OR OTHER ELECTRONIC DEVICES. 1.  ANY  RETAILER  THAT
 TRACKS A CUSTOMER BY USE OF THE CUSTOMER'S CELL PHONE OR ANY OTHER ELEC-
 TRONIC  DEVICE  WHILE  THE  CUSTOMER  IS  IN  THEIR  ESTABLISHMENT SHALL
 CONSPICUOUSLY POST A WARNING SIGN AT EACH ENTRANCE INDICATING THAT  SUCH
 RETAILER  PERFORMS  SUCH  TRACKING. SUCH WARNING SIGN SHALL ALSO PROVIDE
 INFORMATION FOR CUSTOMERS WHO WISH TO OPT OUT OF THE TRACKING.
   2. ANY RETAILER THAT VIOLATES THIS SECTION SHALL BE SUBJECT TO A CIVIL
 PENALTY OF NOT MORE THAN ONE HUNDRED DOLLARS FOR  THE  FIRST  VIOLATION,
 NOT  MORE  THAN  TWO HUNDRED FIFTY DOLLARS FOR THE SECOND VIOLATION, AND
 NOT MORE THAN FIVE HUNDRED DOLLARS FOR EACH  VIOLATION  THEREAFTER.  THE
 PROVISIONS  OF  SUBDIVISION  ONE OF THIS SECTION MAY BE ENFORCED CONCUR-
 RENTLY BY THE DIRECTOR OF A MUNICIPAL CONSUMER AFFAIRS OFFICE, OR BY THE
 TOWN ATTORNEY, CITY CORPORATION COUNSEL, OR OTHER LAWFUL DESIGNEE  OF  A
 MUNICIPALITY  OR  LOCAL  GOVERNMENT, AND ALL MONEYS COLLECTED THEREUNDER
 SHALL BE RETAINED BY SUCH MUNICIPALITY OR LOCAL GOVERNMENT.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD00449-02-2
 S. 272--A                           2
 
   3. FOR PURPOSES OF THIS SECTION, THE FOLLOWING TERMS  SHALL  HAVE  THE
 FOLLOWING MEANINGS:
   (A) "ELECTRONIC  DEVICE" SHALL MEAN ANY CELL PHONE AS DEFINED BY PARA-
 GRAPH  (B)  OF    THIS SUBDIVISION, PERSONAL DIGITAL ASSISTANT, HANDHELD
 DEVICE WITH  MOBILE  DATA  ACCESS,  LAPTOP  COMPUTER,  PAGER,  BROADBAND
 PERSONAL  COMMUNICATION  DEVICE,  TWO-WAY MESSAGING   DEVICE, ELECTRONIC
 GAME, OR PORTABLE COMPUTING DEVICE, OR ANY OTHER ELECTRONIC DEVICE  WHEN
 USED TO INPUT, WRITE, SEND, RECEIVE, OR READ TEXT FOR  PRESENT OR FUTURE
 COMMUNICATION.
   (B) "CELL PHONE" SHALL MEAN THE DEVICE USED BY  SUBSCRIBERS  AND OTHER
 USERS OF WIRELESS TELEPHONE SERVICE TO ACCESS SUCH SERVICE.
   (C)  "WIRELESS  TELEPHONE  SERVICE" SHALL MEAN TWO-WAY REAL TIME VOICE
 TELECOMMUNICATIONS SERVICE THAT IS INTERCONNECTED TO A  PUBLIC  SWITCHED
 TELEPHONE  NETWORK AND IS PROVIDED BY A COMMERCIAL MOBILE RADIO SERVICE,
 AS SUCH TERM IS DEFINED BY 47 C.F.R. § 20.3.
   (D) "TRACKING" INCLUDES, BUT  IS  NOT  LIMITED  TO,  SITUATIONS  WHERE
 RETAILERS  TRACK  A  PERSON'S  MOVEMENT THROUGHOUT THE ESTABLISHMENT FOR
 PURPOSES OF STORING OR  SELLING  SUCH  INFORMATION  PERTAINING  TO  SUCH
 PERSON.  "TRACKING"  DOES NOT INCLUDE THE USE OF ELECTRONIC DEVICES THAT
 ARE NOT UNIQUE TO A PARTICULAR PERSON.
   § 2. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.

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