Relates to the personal information of a credit or debit card holder: adds zip code, email address and home, cell and work telephone numbers to the personal information protected.

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S6041-2011 Actions

• Mar 12, 2012: COMMITTEE DISCHARGED AND COMMITTED TO RULES
• Feb 21, 2012: NOTICE OF COMMITTEE CONSIDERATION - REQUESTED
• Jan 4, 2012: REFERRED TO CONSUMER PROTECTION

S6041-2011 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.

S6041-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    6041

                              I N  SENATE

                                 (PREFILED)

                               January 4, 2012
                                 ___________

  Introduced  by  Sen.  MONTGOMERY  -- read twice and ordered printed, and
    when printed to be committed to the Committee on Consumer Protection

  AN ACT to amend the general business law, in relation  to  the  personal
    information of a credit or debit card holder

    THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section 1. Subdivision 3 of section 520-a of the general business law,
  as amended by chapter 233 of the laws of 2007, is  amended  to  read  as
  follows:

    3. No person, firm, partnership or corporation which accepts credit or
  debit  cards for the transaction of business shall require the credit or
  debit card holder to write OR ELECTRONICALLY  ENTER  on  the  credit  or
  debit  card transaction form, nor shall it write [or], cause to be writ-
  ten, OR ELECTRONICALLY ENTERED on such form or on any attachment  there-
  to,  any  personal identification information, including but not limited
  to the credit or debit card  holder's  address  [or],  ZIP  CODE,  EMAIL
  ADDRESS  OR  telephone  [number]  NUMBERS, INCLUDING HOME, CELL AND WORK
  TELEPHONE NUMBERS, that is not required by  the  credit  or  debit  card
  issuer  to  complete  the  credit  or  debit card transaction; provided,
  however, that the credit or debit card holder's  address  and  telephone
  number  may  be  required [on such form or attachment thereto] where (i)
  such information is necessary for shipping, delivery or installation  of
  purchased  merchandise  or for special orders; or (ii) the person, firm,
  partnership or corporation processes credit or debit  card  transactions
  by mailing transaction forms to a designated bankcard center for settle-
  ment.
    S 2. This act shall take effect immediately.



   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD13733-02-2