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<b><i>Online Extra</b></i> Bill Limiting Online Data Grabs Clears California Senate

By Cheryl Miller
January 31, 2014

Over protests from the tech lobby, California senators passed legislation on Jan 30 that would limit what information online retailers can collect from their customers.

Senate Bill 383'would still allow online merchants to log their credit card-paying customers' billing addresses and ZIP codes, but only if they use that information to battle identity theft and fraud. Merchants would eventually have to delete that data, and they would not be allowed to sell it to third-party brokers.

The bill, backed by consumer and privacy groups, is an attempt to legislatively address the state Supreme Court's 2013 ruling in'Apple Inc. v. Superior Court (Krescent). Justices held that state law restricting what information brick-and-mortar stores can collect from customers does not apply to e-tailers.

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