BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  SB 568
          Author:   Steinberg (D)
          Amended:  4/1/13
          Vote:     21

           
           SENATE JUDICIARY COMMITTEE  :  6-0, 4/23/13
          AYES:  Evans, Anderson, Corbett, Jackson, Leno, Monning
          NO VOTE RECORDED:  Walters


           SUBJECT  :    Privacy:  Internet:  minors

           SOURCE  :     Author


           DIGEST  :    This bill (1) prohibits an operator of an Internet  
          Web site, online service, online application, or mobile  
          application, as specified, from marketing or advertising a  
          product or service to a minor, as defined, if the minor cannot  
          legally purchase the product or participate in the service in  
          the State of California; (2) prohibits an operator from using,  
          disclosing, or compiling, or allowing a third-party to knowingly  
          use, disclose, or compile, the personal information of a minor  
          for the purpose of marketing goods or services that minors  
          cannot legally purchase or engage in the State of California;  
          (3) requires on January 1, 2015, the operator of an Internet Web  
          site, online service, online application, or mobile application  
          to permit a minor to remove content or information submitted to  
          or posted on the operator's Internet Web site, service, or  
          application by the minor, unless the content or information was  
          submitted or posted by a third-party or any other provision of  
          state or federal law requires the operator or third-party to  
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          maintain the content or information; and (4) requires the  
          operator to provide notice to a minor that the minor may remove  
          the content or information, as specified.

           ANALYSIS  :    

          Existing law:

          1. Provides that, among other rights, all people have an  
             inalienable right to pursue and obtain privacy.

          2. Permits a person to bring an action in tort for an invasion  
             of privacy and provides that in order to state a claim for  
             violation of the constitutional right to privacy, a plaintiff  
             must establish the following three elements:  (1) a legally  
             protected privacy interest; (2) a reasonable expectation of  
             privacy in the circumstances; and (3) conduct by the  
             defendant that constitutes a serious invasion of privacy.   
             (Hill v. National Collegiate Athletic Assn.)  Recognizes four  
             types of activities considered to be an invasion of privacy,  
             giving rise to civil liability including the public  
             disclosure of private facts. 

          3. Provides that there is no reasonable expectation of privacy  
             in information posted on an Internet Web site.  The  
             information is no longer a "private fact" that can be  
             protected from public disclosure.   (Moreno v. Hanford  
             Sentinel.)

          4. Requires an operator of an Internet Web site or online  
             service directed to a child, as defined, or an operator of an  
             Internet Web site or online service that has actual knowledge  
             that it is collecting personal information from a child to  
             provide notice of what information is being collected and how  
             that information is being used, and to give the parents of  
             the child the opportunity to refuse to permit the operator's  
             further collection of information from the child.  

          This bill:


          1  Prohibits an operator of an Internet Web site, online  
             service, online application, or mobile application directed  
             to minors or the operator of an Internet Web site, online  

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             service, online application or mobile application that has  
             actual knowledge that a minor is using its Internet Web site,  
             online service, online application, or mobile application  
             from:


                 marketing or advertising a product or service to a  
               minor, if the minor cannot legally purchase the product or  
               participate in the service in the State of California; or

                 using, disclosing, or compiling, or knowingly allowing a  
               third party to use, disclose, or compile, the personal  
               information of a minor for the purpose of marketing goods  
               or services that minors cannot legally purchase or engage  
               in in the State of California.


          2. As of January 1, 2015, requires an operator of an Internet  
             Web site, online service, online application, or mobile  
             application to do all of the following:


                 permit a minor who is a user of the operator's Internet  
               Web site, service, or application to remove content or  
               information submitted to or posted on the operator's Web  
               site, service or application by the user; and


                 provide notice to a minor who is the user of the  
               operator's Internet Web site, service, or application that  
               the minor may remove content or information submitted to or  
               posted on the operator's Web site, service, or application  
               by the user; and

                 provide notice to a minor who is the user of the  
               operator's Internet Web site, service, or application that  
               the removal described above does not ensure complete or  
               comprehensive removal of the content or information.

          3. As of January 1, 2015, provides that an operator or third  
             party is not required to erase or otherwise eliminate content  
             or information in either of the following circumstances:
                 any other provision of federal or state law requires the  
               operator or third party to maintain the content or  

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               information; or
                 the content or information was submitted to the  
               operator's Internet Web site, service, or application by a  
               third party other than the minor user, including any  
               content or information submitted by the minor user that was  
               republished or resubmitted by the third party.

          4. Provides that the above provisions shall not be construed to  
             limit the authority of a law enforcement agency to obtain any  
             content or information from an operator as authorized by law  
             or pursuant to an order of a court of competent jurisdiction.  


          5. Defines "minor" as a natural person under 18 years of age.

           Background
           
          Enacted in 1998, the federal Child's Online Privacy Protection  
          Act of 1998 (COPPA), requires the Federal Trade Commission (FTC)  
          to issue and enforce a rule (the Rule) concerning children's  
          online privacy.  The FTC further notes that:

             The primary goal of COPPA and the Rule is to place parents  
             in control over what information is collected from their  
             young children online.  The Rule was designed to protect  
             children under age 13 while accounting for the dynamic  
             nature of the Internet.  The Rule applies to operators of  
             commercial websites and online services directed to  
             children under 13 that collect, use, or disclose personal  
             information from children, and operators of general  
             audience websites or online services with actual knowledge  
             that they are collecting, using, or disclosing personal  
             information from children under 13.  (Federal Trade  
             Commission: Frequently Asked Questions about the  
             Children's Online Privacy Protection Rule  
              [as of Apr.   
             19, 2013].)

          On December 19, 2012, the FTC announced final amendments to the  
          COPPA rule in order to strengthen privacy protections for  
          children and to give parents greater control over personal  
          information that online services may collect from children.    
          The New York Times' December 19, 2012 article entitled "New  
          Online Privacy Rules for Children" reported:

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             In an era of widespread photo sharing, video chatting and  
             location-based apps, the revised children's privacy rule  
             makes clear that companies must obtain parental consent  
             before collecting certain details that could be used to  
             identify, contact or locate a child.  These include photos,  
             video and audio as well as the location of a child's mobile  
             device.

             While the new rule strengthens such safeguards, it could  
             also disrupt online advertising.  Web sites and online  
             advertising networks often use persistent identification  
             systems - like a cookie in a person's browser, the unique  
             serial number on a mobile phone, or the I.P. address of a  
             computer - to collect information about a user's online  
             activities and tailor ads for that person.

             The new rule expands the definition of personal information  
             to include persistent IDs if they are used to show a child  
             behavior-based ads.  It also requires third parties like ad  
             networks and social networks that know they are operating  
             on children's sites to notify and obtain consent from  
             parents before collecting such personal information.  And  
             it makes children's sites responsible for notifying parents  
             about data collection by third parties integrated into  
             their services.  (Singer, New Online Privacy Rules for  
             Children, The New York Times (Dec.  19, 2012)  
              [as of Apr.  19,  
             2013].)

           Prior legislation
           
          SB 632 (Davis, 2009) would have required a social networking  
          Internet Web site to provide a disclosure to users that an image  
          which is uploaded onto the Web site is capable of being copied,  
          without consent, by persons who view the image, or copied in  
          violation of the privacy policy, terms of use, or other policy  
          of the site.  The bill was vetoed.
           
          SB 1361 (Corbett, 2010) would have prohibited a social  
          networking Internet Web site, as defined, from displaying, to  
          the public or other registered users, the home address or  
          telephone number of a registered user of that Internet Web site  

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          who is under 18 years of age, as provided.  This bill failed  
          passage in the Assembly Arts, Entertainment, Sports, Tourism,  
          and Internet Media Committee.
           
          SB 242 (Corbett, 2011) would have prohibited a social networking  
          Internet Web site from displaying the home address or telephone  
          number, in specified text fields, of a registered user who  
          identifies himself or herself as under 18 years of age.  This  
          bill failed passage on the Senate Floor.
           
          SB 761 (Lowenthal, 2012) would have required the Attorney  
          General, by July 1, 2012, to adopt regulations that would  
          require online businesses to provide California consumers with a  
          method for the consumer to opt out of the collection or use of  
          his or her information by the business.  This bill died in the  
          Senate Appropriations Committee.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   Local:  
           No

           SUPPORT  :   (Verified  4/25/13)

          California Partnership to End Domestic Violence
          Child Abuse Prevention Center
          Children Now
          Common Sense Media
          Crime Victim United of California


           ARGUMENTS IN SUPPORT  :    According to the author, "Children  
          should be allowed to erase that which they post because mistakes  
          can follow a young person for a long time and impact their  
          chances of getting into college and landing a job.  In fact, a  
          2011 Kaplan Survey found that 27 [percent] of college admissions  
          officers check Google and 26 [percent] check Facebook as part of  
          the applicant review process.  Over a third of employers,  
          according to a CareerBuilder study, say that they will not hire  
          someone whose Facebook page includes photos of that person  
          drinking or in provocative dress."  


          AL:d  4/26/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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