BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1116


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          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


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          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


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          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


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          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


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