A newly proposed data privacy bill in New York, called the New York Privacy Act, is working its way through the New York legislature. The bill is the latest data privacy act to be introduced at the state level, with the California Consumer Privacy Act of 2018 (CCPA) leading the way, followed recently by the Virginia Consumer Data Protection Act (VCDPA). Insiders believe that, were it to pass, the New York Privacy Act could be the most far-reaching data privacy bill yet. Rob Williams, reporting for MediaPost said, “While the New York Privacy Act may be well intended, it could negatively affect publishers by diminishing the value of their ad inventories and expose them to greater legal liabilities.”
What Is The Proposed New York Privacy Act?
The proposed New York Privacy Act (SB 6701/A680) shares some similarities with CCPA and VCDPA in that it seeks to provide transparency to consumers with regard to how and when their data is collected and used. However, the New York Privacy Act, if passed, will impose several new provisions, including the ability for consumers to:
- Opt in or out of data sharing
- Request access to, and corrections or deletions of, their personal data
- Confirm whether their data is being sold and to whom.
Additionally, MediaPost reports that “the bill would prohibit companies from using pre-checked boxes – or other default settings – to obtain consumers' consent to data processing.”
How Is The Proposed New York Privacy Act Different Than The CCPA And VCDPA?
MediaPost notes that the requirement in the proposed New York Privacy Act for advertisers to obtain “opt-in consent [from consumers] makes New York's law more restrictive than the privacy laws in California or Virginia, which give consumers the right to opt out of data processing.”
Plus, the ability for consumers to bring suit for violations of a “number of new rights” that include things like “how their data is being processed and sold, and the ability to correct or delete data” could put a huge onus on advertisers and lead to frivolous lawsuits.
Do Most Advertisers Support The Proposed New York Privacy Act?
As the bill stands right now, many advertisers are concerned about the proposed New York Privacy Act. MediaPost reports that The Association of National Advertisers, American Association of Advertising Agencies, Interactive Advertising Bureau, Network Advertising Initiative and American Advertising Federation together wrote a letter suggesting the state study “the many practical and beneficial uses of [consumer] data, as well as other states' privacy laws, before moving forward with the bill.” The advertising trade groups also expressed concern about consumers being “inundated with constant requests for their consent to carry out the most routine, essential and expected data processing activities.”
What Could The Proposed New York Privacy Act Mean For Advertisers?
If the proposed bill passes as it is currently written, any advertiser that is in compliance with the CCPA should be able to meet the standards of the New York Privacy Act with minor campaign and database management updates. As is the case with all the privacy laws being proposed, businesses should be proactive and prepared and aware of how they collect, store and use data and how data impacts ongoing and upcoming campaigns. Offering reassurance to consumers that their data isn't being mismanaged should also be a part of future-proofing strategies.
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Digital Media Solutions® (DMS) understands how important it is for brands to adhere to regulations like CCPA, TCPA and CAN-SPAM, so we have prioritized and operationalized compliance across everything we do to offer brand-safe digital consumer engagement opportunities. DMS de-risks ad spend while helping our advertiser clients connect with more consumers and expand their customer bases.
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