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S222Senate2009-2010 Session

Restricts the distribution of customer information by certain utility corporations

Sponsor Carl KrugerSD-27Affects Environment & Energy
Status
In Senate Committee
Energy And Telecommunications
Impact
Pending
Passage
Pending

Bill progress

Step 2 of 7

In committee · Energy And Telecommunications

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Who cares

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Sponsors

Primary sponsor
Carl Kruger

Senator · Senate District 27

No co-sponsors yet.

History

  1. Referred to energy and telecommunications
  2. Referred to energy and telecommunications

Full text

The text isn't available here yet. Check nysenate.gov.

Sponsor's memo

Title of bill

An act to amend the public service law, in relation to restricting the distribution of information pertaining to customers which a gas corporation, electric corporation, steam corporation or water-works corporation may disclose

Summary

The purpose of this bill is to ensure the privacy of public utility customers. Under the bill, the Public Service commission would regulate the sale by utility corporations, as defined in the proposed law, of customer mailing lists consisting of residential customer or subscriber names and addresses.

However, a utility would be prohibited from disclosing or marketing the following information:

Read the full memo (629 words)

(a) the customer's service usage patterns, including any energy audit information; (b) the customer's social security number, credit rating or other personal financial information; (c) services obtained from the corporation; (d) demographic information; and (e) any other information determined by the PSC.

Prior to marketing or disclosing customer lists, utility corporations must provide customer notification of the practice and provide a service bill check-off mechanism or opt-out provision whereby customers or subscribers could restrict the sale of their names and addresses. The Public Service Commission may require additional notification or other conditions on the sale of mailing lists. Any person injured because of a violation of the provisions of this section could bring an action in their own name to recover the greater of their actual damages or $500, to enjoin the continuation of such violations, or both. The court could, in its discretion, impose treble damages for knowing and willful violations. Prevailing plaintiffs could be awarded reasonable attorney's fees. In addition to the other remedies, any corporation which violates any provision, shall be liable for a civil fine of not more than $500 for each violation. The existing authority of any court, department or agency to regulate the practices of public utilities would not be limited by this bill.

Effects of present law which this bill would alter

The public service law is amended by adding a new section 119-d.

Justification

With the advances in computer technology, information access and database management, public utilities have begun to compile and market lists consisting of their customers' names, addresses and other data to third parties. The information is often combined in predetermined configurations or profiles without the knowledge or consent of customers. The information is sold and then resold for purposes not originally intended. This practice has serious intrusion implications. In fact, knowledge of personal information such as a social security Number enables individuals and businesses to access other data banks of sensitive information. Numerous nationwide studies have revealed that Americans are increasingly concerned about their personal privacy and the use of personal information stored in files.

In TRENDS AND FORECASTS TECHNOLOGY AND CONSUMERS: JOBS, EDUCATION, PRIVACY by Cambridge Reports, over 91% of those sampled indicated a concern for their personal privacy. In an American Express study, 80% of those surveyed believe that corporations should not disclose personal information to third parties. Finally, in a 1990 survey conducted by Harris, 'over 70% of those sampled indicated that consumers have lost control over how personal information is circulated and used.

Furthermore, while some indicated their approval for selling customer lists they conditioned that consent on the ability to restrict the release to certain third parties or having the opportunity to opt-out. In addition to the findings of recent surveys, empirical evidence has demonstrated the fact that consumer resistance to database marketing is increasing. Chesapeake, Potomac and New York Telephone Companies, for example, reversed decisions to market and rent their customer listings due to the overwhelmingly negative reaction from customers concerned about their privacy.

Fiscal implication

None.

Effective date

The act shall take effect on the one hundred eightieth day after it shall have become a law.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.