California ISP Privacy Bill Advances in 1 Senate Committee, Faces Scrutiny From Others

A California bill that would require ISPs to get express consent from consumers to use, disclose and sell personal data survived a Senate Energy, Utilities and Communications Committee hearing Tuesday, despite opposition from industry. By a 9-1 vote with one member abstaining, the committee advanced AB-375 with several saying the legislation needs work before it reaches the Senate floor. The bill, which unanimously passed the Assembly in May, faces scrutiny by the state Senate Judiciary Committee, scheduled to hold a hearing at our deadline (see 1707060052). A spokeswoman for the Energy Committee emailed that even if Judiciary votes down the bill, it would be held there and "is not officially dead."

"Repeal of the FCC rules was a betrayal of every Californian's right to privacy," testified Assemblymember Ed Chau (D), who introduced the bill. California is among many states (see 1706190058) pushing legislation after President Donald Trump and Congress killed FCC broadband privacy rules in April (see 1704040059). The state Senate Business, Professions and Economic Development Committee also is expected to review the legislation.

Chau said the bill also prohibits pay-for-privacy arrangements whereby consumers pay extra to prevent the sale or use of their personal information. Former FCC Chief Technology Officer Scott Jordan said the bill is pro-consumer and pro-business because it restores control of personal information to consumers, while allowing ISPs to use their information with consent. Supporters argued the bill targets ISPs because the majority of consumers may have limited choice, usually one or two companies, to access the internet, while they decide to join social networks or download apps. Representatives from the American Civil Liberties Union, Credo Mobile, Privacy Rights Clearinghouse and numerous consumer protection organizations, educators and residents told the committee they back the bill.

Former FTC Chairman Jon Leibowitz, co-chair of the ISP-funded 21st Century Privacy Coalition, said the bill addresses a "nonexistent problem." He said broadband privacy rules the FCC adopted last year never took effect. Leibowitz wrote a Monday opinion piece in The Sacramento Bee against the bill's adoption.

Any legislation, added Leibowitz, should focus on how the data is collected and used, not what organization is handling personal information. Andrea Deveau, vice president-state policy and politics for TechNet, and Bernie Orozco, vice-president of government affairs at the California Cable & Telecommunications Association, also testified against the bill, and representatives from AT&T, Charter Communications, Comcast, CTIA, Sprint and Verizon, among other state groups, told the committee they oppose it.