BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1116


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          1116 (Committee on Privacy and Consumer Protection)


          As Amended  , 2015


          Majority vote


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          |ASSEMBLY:  | 74-0 | (May 22,      |SENATE: | 40-0 | (September 8,   |
          |           |      |2015)          |        |      |2015)            |
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          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  








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            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. 










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          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  








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          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