BILL ANALYSIS Ó AB 1116 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1116 (Committee on Privacy and Consumer Protection) As Amended , 2015 Majority vote -------------------------------------------------------------------- |ASSEMBLY: | 74-0 | (May 22, |SENATE: | 40-0 | (September 8, | | | |2015) | | |2015) | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: P. & C.P. SUMMARY: Prohibits the collection and use of spoken words and conversations captured by Internet-connected televisions, commonly known as "connected televisions" or "smart TVs" without first informing the user, and prohibits using or selling for advertising purposes any spoken words or sounds collected through a connected television for purposes of improving the voice recognition feature. Specifically, this bill: 1)Prohibits the provision of voice recognition features without first prominently providing the user or user's designee with of the television's capability to collect, record, store, analyze, transmit, interpret or otherwise use spoken words during the initial setup or installation. 2)Prohibits the sale or use for advertising purposes of actual recordings of spoken words collected through the operation of a voice recognition feature by the manufacturer of a connected television for the purpose of improving the voice recognition AB 1116 Page 2 feature. 3)Prohibits the sale or use for advertising purposes of actual recordings of spoken words collected through the operation of a voice recognition feature by a third party contracting with a manufacturer for the purpose of improving the voice recognition feature. 4)Prohibits a person or entity from compelling a manufacturer or an entity offering voice recognition services to build features into a connected television for the purpose of allowing an investigative or law enforcement officer to monitor communications. 5)Specifies that a manufacturer is only liable for functionality provided at the time of the original sale of a connected television, and is not liable for any separate applications downloaded and installed onto the connected television by a user. 6)Specifies that the provisions of this bill do not apply to satellite or cable television corporations, as specified. 7)Defines the terms "connected television," "user," and "voice recognition feature." 8)Invalidates any waiver of this bill's provisions as contrary to public policy, and void and unenforceable. 9)Gives the Attorney General or a district attorney the power to prosecute a manufacturer that violates or proposes to violate these provisions by seeking injunctive relief, a civil penalty of up to $2,500 per violation, or both, and are cumulative. AB 1116 Page 3 10)Specifies that there is no private right of action for violation of these provisions, nor do these provisions limit any existing right of private action. 11)Declares that the provisions of this bill are severable. The Senate amendments generally revise and recast the provisions of this bill to: 1) remove the requirement for user consent prior to initially enabling the voice recognition feature of a connected television; 2) remove the requirements that connected televisions indicate when the voice recognition feature is activated and have an on/off function for the voice recognition feature; 3) limit the bill to restricting connected TV manufacturers and their third party voice recognition service contractors from using data originally collected for the purpose of improving the voice recognition features for the purpose of advertising; and 4) specify that the penalties in the bill apply when there is a "knowing" violation of the bill. FISCAL EFFECT: According to the Assembly Appropriations Committee, there are potential minor costs to the Attorney General or local prosecutors, offset to some extent by penalty revenues. COMMENTS: This bill is intended to protect the privacy of people inside their homes by requiring disclosure at installation to the user of the functions of a connected television, while also prohibiting the use of voice data collected from connected TVs for advertising if the voice data was originally collected by the manufacturer (or third party voice recognition provider) solely for the purpose of improving the connected television or voice recognition features of the TV. Connected TV voice recognition features respond to human voices so that users can speak basic commands to operate the TV and speak search terms to search for content on the Internet, rather AB 1116 Page 4 than using the remote control to find and select options. According to Statistica.com, about 52 million smart TVs were sold worldwide in 2011, and that figure is expected to reach 141 million in 2015. Analysis Prepared by: Jennie Bretschneider / P. & C.P. / (916) 319-2200 FN: 0002228