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CA Data Privacy Bill Would Undo Apple's Win
Online retailers in California could be held liable for requiring anything more than a ZIP code from credit card and debit card customers to complete a transaction under proposed legislation unveiled on March 20.
Assembly Bill 844 (http://bit.ly/WGjNUo) is a direct response to the state Supreme Court's February ruling in Apple v. Superior Court (Krescent), No. S199384 (Ca. Sup. Ct., Feb. 4, 2013) (http://bit.ly/VysVKh), which held that long-standing state law shielding consumers' personal information did not apply to e-commerce. A slim four-justice majority said that while the statute was aimed at protecting consumer privacy, it did not foresee the potential for credit card fraud in online transactions.
'In today's high-tech world, the privacy of online consumers is continually susceptible to being violated,' the bill's author, Assemblyman Roger Dickinson (D-Sacramento) said in a prepared statement. 'The court's decision will further impair the privacy of online consumers.'
The bill would exempt companies who seek additional customer information when a credit card is used as a deposit to secure payment or for cash advance transfers. Violators would be subject to civil penalties.
Apple did not return a message seeking comment on the legislation.
Warrant Required for e-Mail
On the same day, amended legislation was introduced in the California Senate that would require law enforcement agencies to obtain a search warrant before asking a service provider for a customer's e-mails. The bill is sponsored by the Electronic Frontier Foundation (EFF; www.eff.org).
'Both state and federal privacy laws have failed to keep up with the modern electronic age, and government agencies are frequently able to access sensitive and personal information, including e-mail, without adequate oversight,' SB 467's author, Senator Mark Leno (D-San Francisco), said in a press statement. The Bill is available online at http://bit.ly/ZWpcEl.
Cheryl Miller is a Reporter for The Recorder, the San Francisco-based ALM affiliate of e-Commerce Law & Strategy.
Online retailers in California could be held liable for requiring anything more than a ZIP code from credit card and debit card customers to complete a transaction under proposed legislation unveiled on March 20.
Assembly Bill 844 (http://bit.ly/WGjNUo) is a direct response to the state Supreme Court's February ruling in
'In today's high-tech world, the privacy of online consumers is continually susceptible to being violated,' the bill's author, Assemblyman Roger Dickinson (D-Sacramento) said in a prepared statement. 'The court's decision will further impair the privacy of online consumers.'
The bill would exempt companies who seek additional customer information when a credit card is used as a deposit to secure payment or for cash advance transfers. Violators would be subject to civil penalties.
Warrant Required for e-Mail
On the same day, amended legislation was introduced in the California Senate that would require law enforcement agencies to obtain a search warrant before asking a service provider for a customer's e-mails. The bill is sponsored by the Electronic Frontier Foundation (EFF; www.eff.org).
'Both state and federal privacy laws have failed to keep up with the modern electronic age, and government agencies are frequently able to access sensitive and personal information, including e-mail, without adequate oversight,' SB 467's author, Senator Mark Leno (D-San Francisco), said in a press statement. The Bill is available online at http://bit.ly/ZWpcEl.
Cheryl Miller is a Reporter for The Recorder, the San Francisco-based ALM affiliate of e-Commerce Law & Strategy.
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