2017 -- H 6087

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LC002358

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS -- RIGHT-

TO-KNOW ACT

     Introduced By: Representatives Shanley, Carson, Regunberg, Bennett, and
Marszalkowski

     Date Introduced: April 06, 2017

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 6 of the General Laws entitled "COMMERCIAL LAW - GENERAL

REGULATORY PROVISIONS" is hereby amended by adding thereto the following chapter:

CHAPTER 48.1

RIGHT-TO-KNOW ACT

     6-48.1-1. Short title.

     This chapter shall be known and may be cited as the "Right-to-Know Act."

     6-48.1-2. Legislative findings.

     The General Assembly hereby finds and declares that:

     (1) The right to privacy is a personal and fundamental right protected by the United

States Constitution. As such, all individuals have a right to privacy in information pertaining to

them. This state recognizes the importance of providing consumers with transparency about how

their personal information, especially information relating to their children, is shared by

businesses. This transparency is crucial for Rhode Island citizens to protect themselves and their

families from cyber-crimes and identity thieves.

     (2) Furthermore, for free market forces to have a role in shaping the privacy practices and

for "opt-in" and "opt-out" remedies to be effective, consumers must be more than vaguely

informed that a business might share personal information with third parties. Consumers must be

better informed about what kinds of personal information is shared with other businesses. With

these specifics, consumers can knowledgeably choose to opt-in, opt-out, or choose among

businesses that disclose information to third parties on the basis of how protective the business is

of consumers' privacy.

     (3) Businesses are now collecting personal information and sharing and selling it in ways

not contemplated or properly covered by the current law. Some websites are installing tracking

tools that record when consumers visit web pages, and sending very personal information, such as

age, gender, race, income, health concerns, religion, and recent purchases to third-party marketers

and data brokers. Third-party data broker companies are buying, selling, and trading personal

information obtained from mobile phones, financial institutions, social media sites, and other

online and brick and mortar companies. Some mobile applications are sharing personal

information, such as location information, unique phone identification numbers, and age, gender,

and other personal details with third-party companies.

     (4) As such, consumers need to know the ways that their personal information is being

collected by companies and then shared or sold to third parties in order to properly protect their

privacy, personal safety, and financial security.

     6-48.1-3. Definitions.

     As used in this chapter:

     (1) "Categories of personal information" includes, but is not limited to, the following:

     (i) Identity information including, but not limited to, real name, alias, nickname, and user

name;

     (ii) Address information, including, but not limited to, postal or e-mail;

     (iii) Telephone number;

     (iv) Account name;

     (v) Social security number or other government-issued identification number, including,

but not limited to, social security number, driver's license number, identification card number,

and passport number;

     (vi) Birthdate or age;

     (vii) Physical characteristic information, including, but not limited to, height and weight;

     (viii) Sexual information, including, but not limited to, sexual orientation, sex, gender

status, gender identity, and gender expression;

     (ix) Race or ethnicity;

     (x) Religious affiliation or activity;

     (xi) Political affiliation or activity;

     (xii) Professional or employment-related information;

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     (xiii) Educational information;

     (xiv) Medical information, including, but not limited to, medical conditions or drugs,

therapies, mental health, or medical products or equipment used;

     (xv) Financial information, including, but not limited to, credit, debit, or account

numbers, account balances, payment history, or information related to assets, liabilities, or

general creditworthiness;

     (xvi) Commercial information, including, but not limited to, records of property, products

or services provided, obtained, or considered, or other purchasing or consumer histories or

tendencies;

     (xvii) Location information;

     (xviii) Internet or mobile activity information, including, but not limited to, Internet

protocol addresses or information concerning the access or use of any Internet or mobile-based

site or service;

     (xix) Content, including text, photographs, audio or video recordings, or other material

generated by or provided by the customer; and

     (xx) Any of the above categories of information as they pertain to the children of the

customer.

     (2) "Customer" means an individual residing in this state who provides, either knowingly

or unknowingly, personal information to a private entity, with or without an exchange of

consideration, in the course of purchasing, viewing, accessing, renting, leasing, or otherwise

using real or personal property, or any interest therein, or obtaining a product or service from the

private entity, including advertising or any other content.

     (3) "Designated request address" means an email address or toll-free telephone number

whereby customers may request or obtain the information required to be provided under §6-48.1-

4.

     (4) "Disclose" means to disclose, release, transfer, share, disseminate, make available, or

otherwise communicate orally, in writing, or by electronic or any other means to any third party.

"Disclose" does not include the following:

     (i) Disclosure of personal information by a private entity to a third party under a written

contract authorizing the third party to utilize the personal information to perform services on

behalf of the private entity, including maintaining or servicing accounts, providing customer

service, processing or fulfilling orders and transactions, verifying customer information,

processing payments, providing financing, or similar services, but only if:

     (A) The contract prohibits the third party from using the personal information for any

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reason other than performing the specified service or services on behalf of the private entity and

from disclosing any such personal information to additional third parties; and

     (B) The private entity effectively enforces these prohibitions.

     (ii) Disclosure of personal information by a business to a third party based on a good-

faith belief that disclosure is required to comply with applicable law, regulation, legal process, or

court order.

     (iii) Disclosure of personal information by a private entity to a third party that is

reasonably necessary to address fraud, security, or technical issues; to protect the disclosing

private entity's rights or property; or to protect customers or the public from illegal activities as

required or permitted by law.

     (5) "Operator" means any person or entity that owns an Internet website located or an

online service that collects and maintains personally identifiable information from a customer

residing in this state who uses or visits the website or online service if the website or online

service is operated for commercial purposes. It does not include any third party that operates,

hosts, or manages, but does not own, a website or online service on the owner's behalf or by

processing information on behalf of the owner.

     (6)(i) "Personal information" means any information that identifies, relates to, describes,

or is capable of being associated with, a particular individual, including, but not limited to, their

name, signature, physical characteristics or description, address, telephone number, passport

number, driver's license or state identification card number, insurance policy number, education,

employment, employment history, bank account number, credit card number, debit card number,

or any other financial information.

     (ii) "Personal information" also means any data or information pertaining to an

individual's income, assets, liabilities, purchases, leases, or rentals of goods, services, or real

property, if that information is disclosed, or is intended to be disclosed, with any identifying

information, such as the individual's name, address, telephone number, or social security number.

     (7) "Third party" or "third parties" means:

     (i) A private entity that is a separate legal entity from the private entity that has disclosed

personal information;

     (ii) A private entity that does not share common ownership or common corporate control

with the private entity that has disclosed personal information; or

     (iii) A private entity that does not share a brand name or common branding with the

private entity that has disclosed personal information such that the affiliate relationship is clear to

the customer.

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     6-48.1-4. Notification of information sharing practices.

     An operator of a commercial website or online service that collects personally

identifiable information through the Internet about individual customers residing in this state who

use or visit its commercial website or online service shall, in its customer agreement or

incorporated addendum:

     (1) Identify all categories of personal information that the operator collects through the

website or online service about individual customers who use or visit its commercial website or

online service;

     (2) Identify all categories of third-party persons or entities with whom the operator may

disclose that personally identifiable information; and

     (3) Provide a description of a customer's rights, as required under §6-48.1-6,

accompanied by one or more designated request addresses.

     6-48.1-5. Disclosure of a customer's personal information to a third party.

     (a) An operator that discloses a customer's personal information to a third party shall

make the following information available to the customer free of charge:

     (1) All categories of personal information that were disclosed; and

     (2) The names of all third parties that received the customer's personal information.

     (b) This section applies only to personal information disclosed after the effective date of

this chapter.

     6-48.1-6. Information availability service.

     (a) An operator required to comply with §6-48.1-5 shall make the required information

available by providing a designated request address in its customer agreement or incorporated

addendum, and, upon receipt of a request under this section, shall provide the customer with the

information required under §6-48.1-5 for all disclosures occurring in the prior twelve (12)

months.

     (b) An operator that receives a request from a customer under this section at one of the

designated addresses shall provide a response to the customer within thirty (30) days.

     6-48.1-7. Right of action.

     Any person whose rights under this chapter are violated shall have a right of action

against an offending party, and shall recover:

     (i) Liquidated damages of ten dollars ($10.00) or actual damages, whichever is greater;

     (ii) Injunctive relief, if appropriate; and

     (iii) Reasonable attorneys' fees, costs, and expenses.

     6-48.1-8. Waivers; Contracts.

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     Any waiver of the provisions of this chapter shall be void and unenforceable. Any

agreement that does not comply with the applicable provisions of this chapter shall be void and

unenforceable.

     6-48.1-9. Construction.

     (a) Nothing in this chapter shall be construed to conflict with the Federal Health

Insurance Portability and Accountability Act of 1996 and the rules promulgated under that act.

     (b) Nothing in this chapter shall be deemed to apply in any manner to a financial

institution or an affiliate of a financial institution that is subject to Title V of the Federal Gramm-

Leach-Bliley Act of 1999 and the rules promulgated under that act.

     (c) Nothing in this chapter shall be deemed to apply to the activities of an individual or

entity to the extent that those activities are subject to Section 222 or 631 of the Federal

Communications Act of 1934.

     (d) Nothing in this chapter shall be construed to apply to a contractor, subcontractor, or

agent of a state agency or local unit of government when working for that state agency or local

unit of government.

     SECTION 2. This act shall take effect on July 1, 2017.

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LC002358

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS -- RIGHT-

TO-KNOW ACT

***

     This act would protect individuals of this state from disclosure of personally identifiable

information through the Internet by operators of commercial websites or online services and

would create a right of action for any operator violations.

     This act would take effect on July 1, 2017.

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