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Who cares
Headline styles
Sponsors
3 Co-sponsors
History
- Committee discharged and committed to rules
- Notice of committee consideration - requested
- Referred to consumer protection
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to the personal information of a credit or debit card holder
In Assembly Committee · Consumer Affairs And Protection · Sponsor Naomi Rivera
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.