BILL ANALYSIS Ó AB 1116 Page 1 Date of Hearing: May 13, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 1116 (Committee on Privacy and Consumer Protection) - As Amended April 30, 2015 ----------------------------------------------------------------- |Policy |Privacy and Consumer |Vote:|11 - 0 | |Committee: |Protection | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Judiciary | |10 - 0 | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill limits the ability of "smart TVs" to record and transmit spoken words for a purpose not essential to the function of the television. Specifically, this bill: AB 1116 Page 2 1)Prohibits TVs with voice-recognition (VR) features, also known as "smart TVs," from being used to collect, record, store, analyze, or transmit spoken words for any purpose not essential to the function of the application with the VR feature that the consumer uses. 2)Requires a one-time opt-in consent with a separate notice to the consumer before a VR feature on a smart TV is enabled. 3)Requires smart TVs with VR features to have mechanisms that allow consumers to: a) Affirmatively choose to use of the VR feature; b) Start and stop the VR feature; and c) Understand when the VR feature is on and collecting or transmitting spoken words or sounds. 4)Authorizes the Attorney General (AG) or a district attorney to prosecute a manufacturer that violates or proposes to violate these provisions by seeking injunctive relief and/or a civil penalty of up to $2,500 per violation. FISCAL EFFECT: Potential minor costs to the AG or local prosecutors, offset to some extent by penalty revenues. COMMENTS: AB 1116 Page 3 1)Background. Smart TVs are home entertainment systems that are connected to the Internet. Some smart TVs now have technology that can respond to human voices, which allows consumers not only to speak basic commands but also to search for content on the Internet or TV, rather than use a standard remote control to find and select options. While some manufacturers have warnings in their user manuals and privacy policies, many consumers are unaware that their TVs can capture conversations inside the home and transmit them back to the manufacturer or to a third-party service provider. 2)Purpose. This bill expands to smart TVs current law prohibiting cable and satellite TV operators from recording or transmitting conversations that occur in a subscriber's home without notice and consent. According to the Chair of the Committee on Privacy and Consumer Protection, "AB 1116 protects California consumers by requiring manufacturers to ensure that a TV's VR features cannot be enabled or activated without a consumer's knowledge or consent and also by banning the secondary use of voice data, for example for marketing and advertising purposes. This bill affirms the fundamental right to privacy established in the California constitution. Nowhere is privacy more sacred than in the comfort of a person's home. As Justice Scalia noted in Kyllo v. United States, when speaking about the home, 'all details are intimate details, because the entire area is held safe from prying government eyes.' People's intimate details must be kept safe from the prying eyes of corporations as well." Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081 AB 1116 Page 4