103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5581 Introduced , by Rep. Hoan Huynh SYNOPSIS AS INTRODUCED: New Act Creates the Illinois Privacy Rights Act. Defines terms such as "biometric data", "consumer", "controller", "deidentified data", and "processor". Creates a consumer protection of privacy in which, with some exceptions, provides an individual with the right to: (i) confirm whether or not a controller is processing the consumer's personal data and access such personal data; (ii) correct inaccuracies in the consumer's personal data; (iii) delete personal data provided by or obtained about the consumer; (iv) obtain a copy of the consumer's personal data processed by the controller in a portable and, to the extent technically feasible, readily usable format; and, (v) opt out of the processing of the personal data for purposes of targeted advertising, the sale of personal data, or profiling in furtherance of solely automated decisions that produce legal or similarly significant effects concerning the consumer. Defines a consumer as a resident of this State excluding an individual acting in commercial or employment context. Provides that this Act applies to persons that conduct business in this State or persons that produce products or services that are targeted to residents of this State that during a 1-year period: (i) controlled or processed the personal data of not less than 35,000 unique consumers, excluding personal data controlled or processed solely for the purpose of completing a payment transaction; or (ii) controlled or processed the personal data of not less than 10,000 unique consumers and derived more than 25% of their gross revenue from the sale of personal data. Provides that the Attorney General has the exclusive authority under this Act to enforce violations of it. Makes a violation of this Act an unfair method of competition or any unfair or deceptive act or practice under the Consumer Fraud and Deceptive Business Practices Act. Prohibits a private cause of action under this Act. Effective January 1, 2025. LRB103 38323 JRC 68458 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5581 Introduced , by Rep. Hoan Huynh SYNOPSIS AS INTRODUCED: New Act New Act Creates the Illinois Privacy Rights Act. Defines terms such as "biometric data", "consumer", "controller", "deidentified data", and "processor". Creates a consumer protection of privacy in which, with some exceptions, provides an individual with the right to: (i) confirm whether or not a controller is processing the consumer's personal data and access such personal data; (ii) correct inaccuracies in the consumer's personal data; (iii) delete personal data provided by or obtained about the consumer; (iv) obtain a copy of the consumer's personal data processed by the controller in a portable and, to the extent technically feasible, readily usable format; and, (v) opt out of the processing of the personal data for purposes of targeted advertising, the sale of personal data, or profiling in furtherance of solely automated decisions that produce legal or similarly significant effects concerning the consumer. Defines a consumer as a resident of this State excluding an individual acting in commercial or employment context. Provides that this Act applies to persons that conduct business in this State or persons that produce products or services that are targeted to residents of this State that during a 1-year period: (i) controlled or processed the personal data of not less than 35,000 unique consumers, excluding personal data controlled or processed solely for the purpose of completing a payment transaction; or (ii) controlled or processed the personal data of not less than 10,000 unique consumers and derived more than 25% of their gross revenue from the sale of personal data. Provides that the Attorney General has the exclusive authority under this Act to enforce violations of it. Makes a violation of this Act an unfair method of competition or any unfair or deceptive act or practice under the Consumer Fraud and Deceptive Business Practices Act. Prohibits a private cause of action under this Act. Effective January 1, 2025. LRB103 38323 JRC 68458 b LRB103 38323 JRC 68458 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5581 Introduced , by Rep. Hoan Huynh SYNOPSIS AS INTRODUCED: New Act New Act New Act Creates the Illinois Privacy Rights Act. Defines terms such as "biometric data", "consumer", "controller", "deidentified data", and "processor". Creates a consumer protection of privacy in which, with some exceptions, provides an individual with the right to: (i) confirm whether or not a controller is processing the consumer's personal data and access such personal data; (ii) correct inaccuracies in the consumer's personal data; (iii) delete personal data provided by or obtained about the consumer; (iv) obtain a copy of the consumer's personal data processed by the controller in a portable and, to the extent technically feasible, readily usable format; and, (v) opt out of the processing of the personal data for purposes of targeted advertising, the sale of personal data, or profiling in furtherance of solely automated decisions that produce legal or similarly significant effects concerning the consumer. Defines a consumer as a resident of this State excluding an individual acting in commercial or employment context. Provides that this Act applies to persons that conduct business in this State or persons that produce products or services that are targeted to residents of this State that during a 1-year period: (i) controlled or processed the personal data of not less than 35,000 unique consumers, excluding personal data controlled or processed solely for the purpose of completing a payment transaction; or (ii) controlled or processed the personal data of not less than 10,000 unique consumers and derived more than 25% of their gross revenue from the sale of personal data. Provides that the Attorney General has the exclusive authority under this Act to enforce violations of it. Makes a violation of this Act an unfair method of competition or any unfair or deceptive act or practice under the Consumer Fraud and Deceptive Business Practices Act. Prohibits a private cause of action under this Act. Effective January 1, 2025. LRB103 38323 JRC 68458 b LRB103 38323 JRC 68458 b LRB103 38323 JRC 68458 b A BILL FOR HB5581LRB103 38323 JRC 68458 b HB5581 LRB103 38323 JRC 68458 b HB5581 LRB103 38323 JRC 68458 b 1 AN ACT concerning civil law. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 1. Short title. This Act may be cited as the 5 Illinois Privacy Rights Act. 6 Section 5. Definitions. As used in this Act: 7 (a) "Affiliate" means a legal entity that shares common 8 branding with another legal entity, or is controlled by, or is 9 under common control with, another legal entity. 10 (b) "Control" or "controlled" means ownership of, or the 11 power to vote, more than 50 percent of the outstanding shares 12 of any class of voting security of a company; control in any 13 manner over the election of a majority of the directors or of 14 individuals exercising similar functions; or the power to 15 exercise controlling influence over the management of a 16 company. 17 (c) "Authenticate" means to use reasonable means to 18 determine that a request to exercise any of the rights 19 afforded under paragraphs (1) through (4) of subsection (a) of 20 Section 20 is being made by, or on behalf of, the consumer who 21 is entitled to exercise such consumer rights with respect to 22 the personal data at issue. 23 (d) "Biometric data" means data generated by automatic 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5581 Introduced , by Rep. Hoan Huynh SYNOPSIS AS INTRODUCED: New Act New Act New Act Creates the Illinois Privacy Rights Act. Defines terms such as "biometric data", "consumer", "controller", "deidentified data", and "processor". Creates a consumer protection of privacy in which, with some exceptions, provides an individual with the right to: (i) confirm whether or not a controller is processing the consumer's personal data and access such personal data; (ii) correct inaccuracies in the consumer's personal data; (iii) delete personal data provided by or obtained about the consumer; (iv) obtain a copy of the consumer's personal data processed by the controller in a portable and, to the extent technically feasible, readily usable format; and, (v) opt out of the processing of the personal data for purposes of targeted advertising, the sale of personal data, or profiling in furtherance of solely automated decisions that produce legal or similarly significant effects concerning the consumer. Defines a consumer as a resident of this State excluding an individual acting in commercial or employment context. Provides that this Act applies to persons that conduct business in this State or persons that produce products or services that are targeted to residents of this State that during a 1-year period: (i) controlled or processed the personal data of not less than 35,000 unique consumers, excluding personal data controlled or processed solely for the purpose of completing a payment transaction; or (ii) controlled or processed the personal data of not less than 10,000 unique consumers and derived more than 25% of their gross revenue from the sale of personal data. Provides that the Attorney General has the exclusive authority under this Act to enforce violations of it. Makes a violation of this Act an unfair method of competition or any unfair or deceptive act or practice under the Consumer Fraud and Deceptive Business Practices Act. Prohibits a private cause of action under this Act. Effective January 1, 2025. LRB103 38323 JRC 68458 b LRB103 38323 JRC 68458 b LRB103 38323 JRC 68458 b A BILL FOR New Act LRB103 38323 JRC 68458 b HB5581 LRB103 38323 JRC 68458 b HB5581- 2 -LRB103 38323 JRC 68458 b HB5581 - 2 - LRB103 38323 JRC 68458 b HB5581 - 2 - LRB103 38323 JRC 68458 b 1 measurements of an individual's biological characteristics, 2 such as a fingerprint, a voiceprint, eye retinas, irises or 3 other unique biological patterns, or characteristics that are 4 used to identify a specific individual. "Biometric data" does 5 not include a digital or physical photograph, an audio or 6 video recording, or any data generated from a digital or 7 physical photograph, or an audio or video recording, unless 8 such data is generated to identify a specific individual. 9 (e) "Business associate" has the same meaning as provided 10 in the Health Insurance Portability and Accountability Act 11 (HIPAA). 12 (f) "Child" has the same meaning as provided in the 13 Children's Online Privacy Protection Act (COPPA). 14 (g) "Consent" means a clear affirmative act signifying a 15 consumer's freely given, specific, informed and unambiguous 16 agreement to allow the processing of personal data relating to 17 the consumer. "Consent" may include a written statement, 18 including by electronic means, or any other unambiguous 19 affirmative action. "Consent" does not include acceptance of a 20 general or broad terms of use or similar document that 21 contains descriptions of personal data processing along with 22 other, unrelated information; hovering over, muting, pausing 23 or closing a given piece of content; or an agreement obtained 24 through the use of deceptive design patterns (also known as 25 "dark patterns"). 26 (h) "Consumer" means an individual who is a resident of HB5581 - 2 - LRB103 38323 JRC 68458 b HB5581- 3 -LRB103 38323 JRC 68458 b HB5581 - 3 - LRB103 38323 JRC 68458 b HB5581 - 3 - LRB103 38323 JRC 68458 b 1 this State. "Consumer" does not include an individual acting 2 in a commercial or employment context or as an employee, 3 owner, director, officer or contractor of a company, 4 partnership, sole proprietorship, nonprofit or government 5 agency whose communications or transactions with the 6 controller occur solely within the context of that 7 individual's role with the company, partnership, sole 8 proprietorship, nonprofit or government agency. 9 (i) "Controller" means an individual who, or legal entity 10 that, alone or jointly with others determines the purpose and 11 means of processing personal data. 12 (j) "COPPA" means the Children's Online Privacy Protection 13 Act of 1998, 15 U.S.C. 6501 et seq., and any amendments, 14 regulations, rules, guidance and exemptions adopted under that 15 act. 16 (k) "Covered entity" has the same meaning as provided in 17 HIPAA. 18 (l) "Dark pattern" or "deceptive design pattern" means a 19 user interface designed or manipulated with the substantial 20 effect of subverting or impairing user autonomy, 21 decision-making or choice, and includes, but is not limited 22 to, any practice the Federal Trade Commission refers to as a 23 "dark pattern". 24 (m) "Decisions that produce legal or similarly significant 25 effects concerning the consumer" means decisions made by the 26 controller that result in the provision or denial by the HB5581 - 3 - LRB103 38323 JRC 68458 b HB5581- 4 -LRB103 38323 JRC 68458 b HB5581 - 4 - LRB103 38323 JRC 68458 b HB5581 - 4 - LRB103 38323 JRC 68458 b 1 controller of financial or lending services, housing, 2 insurance, education enrollment or opportunity, criminal 3 justice, employment opportunities, health care services or 4 access to essential goods or services. 5 (n) "Deidentified data" means data that cannot reasonably 6 be used to infer information about, or otherwise be linked to, 7 an identified or identifiable individual, or a device linked 8 to such individual, if the controller that possesses such data 9 takes reasonable measures to ensure that such data cannot be 10 associated with an individual; publicly commits to process 11 such data only in a deidentified way and not attempt to 12 reidentify such data; and contractually obligates any 13 recipients of such data to satisfy the criteria under this 14 paragraph. 15 (o) "HIPAA" means the Health Insurance Portability and 16 Accountability Act of 1996, 42 USC 1320d et seq., as amended. 17 (p) "Identified or identifiable individual" means an 18 individual who can be readily identified, directly or 19 indirectly. 20 (q) "Institution of higher education" means any individual 21 who, or school, board, association, limited liability company 22 or corporation that, is licensed or accredited to offer one or 23 more programs of higher learning leading to one or more 24 degrees. 25 (r) "Nonprofit organization" means any organization that 26 is exempt from taxation under Section 501(c)(3), 501(c)(4), HB5581 - 4 - LRB103 38323 JRC 68458 b HB5581- 5 -LRB103 38323 JRC 68458 b HB5581 - 5 - LRB103 38323 JRC 68458 b HB5581 - 5 - LRB103 38323 JRC 68458 b 1 501(c)(6), or 501(c)(12) of the Internal Revenue Code of 1986, 2 or any subsequent corresponding internal revenue code of the 3 United States, as amended. 4 (s) "Personal data" means any information that is linked 5 or reasonably linkable to an identified or identifiable 6 individual. "Personal data" does not include deidentified data 7 or publicly available information. 8 (t) "Precise geolocation data" means information derived 9 from technology, including, but not limited to, global 10 positioning system level latitude and longitude coordinates or 11 other mechanisms, that directly identifies the specific 12 location of an individual with precision and accuracy within a 13 radius of 1,750 feet. "Precise geolocation data" does not 14 include the content of communications or any data generated by 15 or connected to advanced utility metering infrastructure 16 systems or equipment for use by a utility. 17 (u) "Process" or "processing" means any operation or set 18 of operations performed, whether by manual or automated means, 19 on personal data or on sets of personal data, such as the 20 collection, use, storage, disclosure, analysis, deletion or 21 modification of personal data. 22 (v) "Processor" means an individual who, or legal entity 23 that, processes personal data on behalf of a controller. 24 (w) "Profiling" means any form of automated processing 25 performed on personal data to evaluate, analyze, or predict 26 personal aspects related to an identified or identifiable HB5581 - 5 - LRB103 38323 JRC 68458 b HB5581- 6 -LRB103 38323 JRC 68458 b HB5581 - 6 - LRB103 38323 JRC 68458 b HB5581 - 6 - LRB103 38323 JRC 68458 b 1 individual's economic situation, health, personal preferences, 2 interests, reliability, behavior, location, or movements. 3 (x) "Protected health information" has the same meaning as 4 provided in HIPAA. 5 (y) "Pseudonymous data" means personal data that cannot be 6 attributed to a specific individual without the use of 7 additional information, provided such additional information 8 is kept separately and is subject to appropriate technical and 9 organizational measures to ensure that the personal data is 10 not attributed to an identified or identifiable individual. 11 (z) "Publicly available information" means information 12 that is lawfully made available through federal, State, 13 municipal government records, or widely distributed media, and 14 a controller has a reasonable basis to believe a consumer has 15 lawfully made available to the general public. 16 (aa) "Sale of personal data" means the exchange of 17 personal data for monetary or other valuable consideration by 18 the controller to a third party. "Sale of personal data" does 19 not include: 20 (1) The disclosure of personal data to a processor 21 that processes the personal data on behalf of the 22 controller; 23 (2) The disclosure of personal data to a third party 24 for purposes of providing a product or service requested 25 by the consumer; 26 (3) The disclosure or transfer of personal data to an HB5581 - 6 - LRB103 38323 JRC 68458 b HB5581- 7 -LRB103 38323 JRC 68458 b HB5581 - 7 - LRB103 38323 JRC 68458 b HB5581 - 7 - LRB103 38323 JRC 68458 b 1 affiliate of the controller; 2 (4) The disclosure of personal data where the consumer 3 directs the controller to disclose the personal data or 4 intentionally uses the controller to interact with a third 5 party; 6 (5) The disclosure of personal data that the consumer 7 intentionally made available to the general public via a 8 channel of mass media, and did not restrict to a specific 9 audience; or 10 (6) The disclosure or transfer of personal data to a 11 third party as an asset that is part of a merger, 12 acquisition, bankruptcy or other transaction, or a 13 proposed merger, acquisition, bankruptcy or other 14 transaction, in which the third party assumes control of 15 all or part of the controller's assets. 16 (bb) "Sensitive data" means personal data that includes 17 data revealing racial or ethnic origin, religious beliefs, 18 mental or physical health condition or diagnosis, sex life, 19 sexual orientation or citizenship or immigration status; the 20 processing of genetic or biometric data for the purpose of 21 uniquely identifying an individual; personal data collected 22 from a known child; or precise geolocation data. 23 (cc) "Targeted advertising" means displaying 24 advertisements to a consumer where the advertisement is 25 selected based on personal data obtained or inferred from that 26 consumer's activities over time and across nonaffiliated HB5581 - 7 - LRB103 38323 JRC 68458 b HB5581- 8 -LRB103 38323 JRC 68458 b HB5581 - 8 - LRB103 38323 JRC 68458 b HB5581 - 8 - LRB103 38323 JRC 68458 b 1 Internet websites or online applications to predict such 2 consumer's preferences or interests. "Targeted advertising" 3 does not include: 4 (1) Advertisements based on activities within a 5 controller's own Internet websites or online applications; 6 (2) Advertisements based on the context of a 7 consumer's current search query, visit to an Internet 8 website, or online application; 9 (3) Advertisements directed to a consumer in response 10 to the consumer's request for information or feedback; or 11 (4) Processing personal data solely to measure or 12 report advertising frequency, performance, or reach. 13 (dd) "Third party" means an individual or legal entity, 14 such as a public authority, agency or body, other than the 15 consumer, controller or processor or an affiliate of the 16 processor or the controller. 17 Section 10. Application. This Act applies to persons that 18 conduct business in this State or persons that produce 19 products or services that are targeted to residents of this 20 State that during a one-year period: 21 (a) Controlled or processed the personal data of not 22 less than 35,000 unique consumers, excluding personal data 23 controlled or processed solely for the purpose of 24 completing a payment transaction; or 25 (b) Controlled or processed the personal data of not HB5581 - 8 - LRB103 38323 JRC 68458 b HB5581- 9 -LRB103 38323 JRC 68458 b HB5581 - 9 - LRB103 38323 JRC 68458 b HB5581 - 9 - LRB103 38323 JRC 68458 b 1 less than 10,000 unique consumers and derived more than 25 2 percent of their gross revenue from the sale of personal 3 data. 4 Section 15. Exclusions. 5 (a) This Act does not apply to any: 6 (1) Body, authority, board, bureau, commission, 7 district or agency of this State or any political 8 subdivision of this State; 9 (2) Nonprofit organization; 10 (3) Institution of higher education; 11 (4) National securities association that is registered 12 under 15 U.S.C. 78o-3 of the Security Exchange Act of 13 1934, as amended; 14 (5) Financial institution or data subject to Title V 15 of the Gramm-Leach-Bliley Act, 15 U.S.C. 6801 et seq.; or 16 (6) A covered entity or business associate, as defined 17 in 45 CFR 160.103(b). 18 (b) The following information and data shall be exempt 19 from this Act: 20 (1) Protected health information under HIPAA; 21 (2) Patient-identifying information for purposes of 42 22 U.S.C. 290dd-2; 23 (3) Identifiable private information for purposes of 24 the federal policy for the protection of human subjects 25 under 45 CFR 46; HB5581 - 9 - LRB103 38323 JRC 68458 b HB5581- 10 -LRB103 38323 JRC 68458 b HB5581 - 10 - LRB103 38323 JRC 68458 b HB5581 - 10 - LRB103 38323 JRC 68458 b 1 (4) Identifiable private information that is otherwise 2 information collected as part of human subjects research 3 pursuant to the good clinical practice guidelines issued 4 by the International Council for Harmonization of 5 Technical Requirements for Pharmaceuticals for Human Use; 6 (5) The protection of human subjects under 21 CFR 7 Parts 6, 50, and 56, or personal data used or shared in 8 research, as defined in 45 CFR 164.501, that is conducted 9 in accordance with the standards set forth in this Act, or 10 other research conducted in accordance with applicable 11 law; 12 (6) Information and documents created for purposes of 13 the Health Care Quality Improvement Act of 1986, 42 U.S.C. 14 11101 et seq.; 15 (7) Patient safety work product for purposes of the 16 Patient Safety and Quality Improvement Act, 42 U.S.C. 17 299b-21 et seq., as amended; 18 (8) Information derived from any of the health care 19 related information listed in this subsection that is 20 deidentified in accordance with the requirements for 21 de-identification pursuant to HIPAA; 22 (9) Information originating from and intermingled to 23 be indistinguishable with, or information treated in the 24 same manner as, information exempt under this Section that 25 is maintained by a covered entity or business associate, 26 program or qualified service organization, as specified in HB5581 - 10 - LRB103 38323 JRC 68458 b HB5581- 11 -LRB103 38323 JRC 68458 b HB5581 - 11 - LRB103 38323 JRC 68458 b HB5581 - 11 - LRB103 38323 JRC 68458 b 1 42 U.S.C. 290dd-2, as amended; 2 (10) Information used for public health activities and 3 purposes as authorized by HIPAA, community health 4 activities and population health activities; 5 (11) The collection, maintenance, disclosure, sale, 6 communication or use of any personal information bearing 7 on a consumer's credit worthiness, credit standing, credit 8 capacity, character, general reputation, personal 9 characteristics or mode of living by a consumer reporting 10 agency, furnisher or user that provides information for 11 use in a consumer report, and by a user of a consumer 12 report, but only to the extent that such activity is 13 regulated by and authorized under the Fair Credit 14 Reporting Act, 15 U.S.C. 1681 et seq.; 15 (12) Personal data collected, processed, sold or 16 disclosed in compliance with the Driver's Privacy 17 Protection Act of 1994, 18 U.S.C. 2721 et seq., as 18 amended; 19 (13) Personal data regulated by the Family Educational 20 Rights and Privacy Act, 20 U.S.C. 1232g et seq., as 21 amended; 22 (14) Personal data collected, processed, sold or 23 disclosed in compliance with the Farm Credit Act, 12 24 U.S.C. 2001 et seq., as amended; 25 (15) Data processed or maintained in the course of an 26 individual applying to, employed by or acting as an agent HB5581 - 11 - LRB103 38323 JRC 68458 b HB5581- 12 -LRB103 38323 JRC 68458 b HB5581 - 12 - LRB103 38323 JRC 68458 b HB5581 - 12 - LRB103 38323 JRC 68458 b 1 or independent contractor of a controller, processor or 2 third party, to the extent that the data is collected and 3 used within the context of that role; as the emergency 4 contact information of an individual under this Act used 5 for emergency contact purposes; or that is necessary to 6 retain to administer benefits for another individual 7 relating to the individual who is the subject of the 8 information under HIPAA and used for the purposes of 9 administering such benefits; 10 (16) Personal data collected, processed, sold or 11 disclosed in relation to price, route or service, as such 12 terms are used in the Airline Deregulation Act, 49 U.S.C. 13 40101 et seq., as amended, by an air carrier subject to the 14 act, to the extent this Act is preempted by the Airline 15 Deregulation Act, 49 U.S.C. 41713, as amended; 16 (17) Personal information maintained or used for 17 purposes of compliance with the regulation of listed 18 chemicals under the federal Controlled Substances Act, 21 19 U.S.C. 830; and 20 (18) Information included in a limited data set as 21 described at 45 CFR 164.514(e), to the extent that the 22 information is used, disclosed, and maintained in the 23 manner specified at 45 CFR 164.514(e). 24 (c) Controllers and processors that comply with the 25 verifiable parental consent requirements of COPPA shall be 26 compliant with any obligation to obtain parental consent HB5581 - 12 - LRB103 38323 JRC 68458 b HB5581- 13 -LRB103 38323 JRC 68458 b HB5581 - 13 - LRB103 38323 JRC 68458 b HB5581 - 13 - LRB103 38323 JRC 68458 b 1 pursuant to this Act. 2 Section 20. Consumer expectation of privacy. 3 (a) A consumer has the right to: 4 (1) Confirm whether or not a controller is processing 5 the consumer's personal data and access such personal 6 data, unless such confirmation or access would require the 7 controller to reveal a trade secret; 8 (2) Correct inaccuracies in the consumer's personal 9 data, taking into account the nature of the personal data 10 and the purposes of the processing of the consumer's 11 personal data; 12 (3) Delete personal data provided by, or obtained 13 about, the consumer; 14 (4) Obtain a copy of the consumer's personal data 15 processed by the controller, in a portable and, to the 16 extent technically feasible, readily usable format that 17 allows the consumer to transmit the data to another 18 controller without hindrance, where the processing is 19 carried out by automated means, provided such controller 20 shall not be required to reveal any trade secret; and 21 (5) Opt out of the processing of the personal data for 22 purposes of targeted advertising, the sale of personal 23 data, except as provided in Section 30, or profiling in 24 furtherance of solely automated decisions that produce 25 legal or similarly significant effects concerning the HB5581 - 13 - LRB103 38323 JRC 68458 b HB5581- 14 -LRB103 38323 JRC 68458 b HB5581 - 14 - LRB103 38323 JRC 68458 b HB5581 - 14 - LRB103 38323 JRC 68458 b 1 consumer. 2 (b) A consumer may exercise rights under this Section by a 3 secure and reliable means established by the Secretary of 4 State and described to the consumer in the controller's 5 privacy notice. A consumer may designate an authorized agent 6 in accordance with Section 25 to exercise the rights of such 7 consumer to opt out of the processing of such consumer's 8 personal data for purposes of paragraph (5) of subsection (a) 9 on behalf of the consumer. In the case of processing personal 10 data of a known child, the parent or legal guardian may 11 exercise such consumer rights on the child's behalf. In the 12 case of processing personal data concerning a consumer subject 13 to a guardianship, conservatorship, or other protective 14 arrangement, the guardian or the conservator of the consumer 15 may exercise such rights on the consumer's behalf. 16 (c) Except as otherwise provided in this Act, a controller 17 shall comply with a request by a consumer to exercise the 18 consumer rights authorized pursuant to this Act as follows: 19 (1) A controller shall respond to the consumer without 20 undue delay, but not later than 45 days after receipt of 21 the request. The controller may extend the response period 22 by 45 additional days when reasonably necessary, 23 considering the complexity and number of the consumer's 24 requests, provided the controller informs the consumer of 25 any such extension within the initial 45-day response 26 period and of the reason for the extension. HB5581 - 14 - LRB103 38323 JRC 68458 b HB5581- 15 -LRB103 38323 JRC 68458 b HB5581 - 15 - LRB103 38323 JRC 68458 b HB5581 - 15 - LRB103 38323 JRC 68458 b 1 (2) If a controller declines to take action regarding 2 the consumer's request, the controller shall inform the 3 consumer without undue delay, but not later than 45 days 4 after receipt of the request, of the justification for 5 declining to take action and instructions for how to 6 appeal the decision. 7 (3) Information provided in response to a consumer 8 request shall be provided by a controller, free of charge, 9 once per consumer during any 12-month period. If requests 10 from a consumer are manifestly unfounded, excessive or 11 repetitive, the controller may charge the consumer a 12 reasonable fee to cover the administrative costs of 13 complying with the request or decline to act on the 14 request. The controller bears the burden of demonstrating 15 the manifestly unfounded, excessive or repetitive nature 16 of the request. 17 (4) If a controller is unable to authenticate a 18 request to exercise any of the rights afforded under 19 paragraphs (1) through (4) of subsection (a) using 20 commercially reasonable efforts, the controller shall not 21 be required to comply with a request to initiate an action 22 pursuant to this Section and shall provide notice to the 23 consumer that the controller is unable to authenticate the 24 request to exercise such right or rights until such 25 consumer provides additional information reasonably 26 necessary to authenticate such consumer and such HB5581 - 15 - LRB103 38323 JRC 68458 b HB5581- 16 -LRB103 38323 JRC 68458 b HB5581 - 16 - LRB103 38323 JRC 68458 b HB5581 - 16 - LRB103 38323 JRC 68458 b 1 consumer's request to exercise such right or rights. A 2 controller shall not be required to authenticate an 3 opt-out request, but a controller may deny an opt-out 4 request if the controller has a good faith, reasonable and 5 documented belief that such request is fraudulent. If a 6 controller denies an opt-out request because the 7 controller believes such request is fraudulent, the 8 controller shall send a notice to the person who made such 9 request disclosing that such controller believes such 10 request is fraudulent, why such controller believes such 11 request is fraudulent and that such controller shall not 12 comply with such request. 13 (5) A controller that has obtained personal data about 14 a consumer from a source other than the consumer shall be 15 deemed in compliance with a consumer's request to delete 16 such data pursuant to paragraph (3) of subsection (a) by 17 retaining a record of the deletion request and the minimum 18 data necessary for the purpose of ensuring the consumer's 19 personal data remains deleted from the controller's 20 records and not using such retained data for any other 21 purpose pursuant to this Act, or opting the consumer out 22 of the processing of such personal data for any purpose 23 except for those exempted pursuant this Act. 24 (d) A controller shall establish a process for a consumer 25 to appeal the controller's refusal to take action on a request 26 within a reasonable period of time after the consumer's HB5581 - 16 - LRB103 38323 JRC 68458 b HB5581- 17 -LRB103 38323 JRC 68458 b HB5581 - 17 - LRB103 38323 JRC 68458 b HB5581 - 17 - LRB103 38323 JRC 68458 b 1 receipt of the decision. The appeal process shall be 2 conspicuously available and similar to the process for 3 submitting requests to initiate action pursuant to this 4 Section. Not later than 60 days after receipt of an appeal, a 5 controller shall inform the consumer in writing of any action 6 taken or not taken in response to the appeal, including a 7 written explanation of the reasons for the decisions. If the 8 appeal is denied, the controller shall also provide the 9 consumer with an online mechanism, if available, or other 10 method through which the consumer may contact the Attorney 11 General to submit a complaint. 12 Section 25. Consumer agents. A consumer may designate 13 another person to serve as the consumer's authorized agent, 14 and act on such consumer's behalf, to opt out of the processing 15 of such consumer's personal data for one or more of the 16 purposes specified in paragraph (5) of subsection (a) of 17 Section 20. The consumer may designate such authorized agent 18 by way of, among other things, a technology, including, but 19 not limited to, an Internet link or a browser setting, browser 20 extension or global device setting, indicating such consumer's 21 intent to opt out of such processing. A controller shall 22 comply with an opt-out request received from an authorized 23 agent if the controller is able to verify, with commercially 24 reasonable effort, the identity of the consumer and the 25 authorized agent's authority to act on such consumer's behalf. HB5581 - 17 - LRB103 38323 JRC 68458 b HB5581- 18 -LRB103 38323 JRC 68458 b HB5581 - 18 - LRB103 38323 JRC 68458 b HB5581 - 18 - LRB103 38323 JRC 68458 b 1 Section 30. Controller responsibilities. 2 (a) A controller shall: 3 (1) Limit the collection of personal data to what is 4 adequate, relevant and reasonably necessary in relation to 5 the purposes for which such data is processed, as 6 disclosed to the consumer; 7 (2) Except as otherwise provided in this Act, not 8 process personal data for purposes that are neither 9 reasonably necessary to, nor compatible with, the 10 disclosed purposes for which such personal data is 11 processed, as disclosed to the consumer, unless the 12 controller obtains the consumer's consent; 13 (3) Establish, implement and maintain reasonable 14 administrative, technical and physical data security 15 practices to protect the confidentiality, integrity and 16 accessibility of personal data appropriate to the volume 17 and nature of the personal data at issue; 18 (4) Not process sensitive data concerning a consumer 19 without obtaining the consumer's consent, or, in the case 20 of the processing of sensitive data concerning a known 21 child, without processing such data in accordance with 22 COPPA; 23 (5) Not process personal data in violation of the laws 24 of this State and federal laws that prohibit unlawful 25 discrimination against consumers; HB5581 - 18 - LRB103 38323 JRC 68458 b HB5581- 19 -LRB103 38323 JRC 68458 b HB5581 - 19 - LRB103 38323 JRC 68458 b HB5581 - 19 - LRB103 38323 JRC 68458 b 1 (6) Provide an effective mechanism for a consumer to 2 revoke the consumer's consent under this Section that is 3 at least as easy as the mechanism by which the consumer 4 provided the consumer's consent and, upon revocation of 5 such consent, cease to process the data as soon as 6 practicable, but not later than 15 days after the receipt 7 of such request; and 8 (7) Not process the personal data of a consumer for 9 purposes of targeted advertising, or sell the consumer's 10 personal data without the consumer's consent, under 11 circumstances where a controller has actual knowledge, and 12 willfully disregards, that the consumer is at least 13 13 years of age but younger than 16 years of age. A controller 14 shall not discriminate against a consumer for exercising 15 any of the consumer rights contained in this Act, 16 including denying goods or services, charging different 17 prices or rates for goods or services or providing a 18 different level of quality of goods or services to the 19 consumer. 20 (b) Nothing in this Section shall be construed to require 21 a controller to provide a product or service that requires the 22 personal data of a consumer which the controller does not 23 collect or maintain, or prohibit a controller from offering a 24 different price, rate, level, quality or selection of goods or 25 services to a consumer, including offering goods or services 26 for no fee, if the offering is in connection with a consumer's HB5581 - 19 - LRB103 38323 JRC 68458 b HB5581- 20 -LRB103 38323 JRC 68458 b HB5581 - 20 - LRB103 38323 JRC 68458 b HB5581 - 20 - LRB103 38323 JRC 68458 b 1 voluntary participation in a bona fide loyalty, rewards, 2 premium features, discounts or club card program. 3 (c) A controller shall provide consumers with a reasonably 4 accessible, clear and meaningful privacy notice meeting 5 standards established by the Secretary of State that includes: 6 (1) The categories of personal data processed by the 7 controller; 8 (2) The purpose for processing personal data; 9 (3) How consumers may exercise their consumer rights, 10 including how a consumer may appeal a controller's 11 decision with regard to the consumer's request; 12 (4) The categories of personal data that the 13 controller shares with third parties, if any; 14 (5) The categories of third parties, if any, with 15 which the controller shares personal data; and 16 (6) An active electronic mail address or other online 17 mechanism that the consumer may use to contact the 18 controller. 19 (d) If a controller sells personal data to third parties 20 or processes personal data for targeted advertising, the 21 controller shall clearly and conspicuously disclose such 22 processing, as well as the manner in which a consumer may 23 exercise the right to opt out of such processing. 24 (e) A controller shall establish, and shall describe in a 25 privacy notice, consistent with the requirements of the 26 Secretary of State, one or more secure and reliable means for HB5581 - 20 - LRB103 38323 JRC 68458 b HB5581- 21 -LRB103 38323 JRC 68458 b HB5581 - 21 - LRB103 38323 JRC 68458 b HB5581 - 21 - LRB103 38323 JRC 68458 b 1 consumers to submit a request to exercise their consumer 2 rights pursuant to this Act. Such means shall take into 3 account the ways in which consumers normally interact with the 4 controller, the need for secure and reliable communication of 5 such requests and the ability of the controller to verify the 6 identity of the consumer making the request. A controller 7 shall not require a consumer to create a new account in order 8 to exercise consumer rights, but may require a consumer to use 9 an existing account. Any such means shall include: 10 (1) Providing a clear and conspicuous link on the 11 controller's Internet website to an Internet web page that 12 enables a consumer, or an agent of the consumer, to opt out 13 of the targeted advertising or sale of the consumer's 14 personal data; and 15 (2) Not later than January 1, 2025, allowing a 16 consumer to opt out of any processing of the consumer's 17 personal data for the purposes of targeted advertising, or 18 any sale of such personal data, through an opt-out 19 preference signal sent, with such consumer's consent, by a 20 platform, technology or mechanism to the controller, 21 indicating such consumer's intent to opt out of any such 22 processing or sale. Such platform, technology or mechanism 23 shall: 24 (A) Not unfairly disadvantage another controller; 25 (B) Not make use of a default setting, but, 26 rather, require the consumer to make an affirmative, HB5581 - 21 - LRB103 38323 JRC 68458 b HB5581- 22 -LRB103 38323 JRC 68458 b HB5581 - 22 - LRB103 38323 JRC 68458 b HB5581 - 22 - LRB103 38323 JRC 68458 b 1 freely given and unambiguous choice to opt out of any 2 processing of such consumer's personal data pursuant 3 to this Act; 4 (C) Be consumer-friendly and easy to use by the 5 average consumer; 6 (D) Be as consistent as possible with any other 7 similar platform, technology or mechanism required by 8 any federal or State law or regulation; and 9 (E) Enable the controller to accurately determine 10 whether the consumer is a resident of this State and 11 whether the consumer has made a legitimate request to 12 opt out of any sale of such consumer's personal data or 13 targeted advertising. 14 (3) If a consumer's decision to opt out of any 15 processing of the consumer's personal data for the 16 purposes of targeted advertising, or any sale of such 17 personal data, through an opt-out preference signal sent 18 in accordance with this subsection (e) conflicts with the 19 consumer's existing controller-specific privacy setting or 20 voluntary participation in a controller's bona fide 21 loyalty, rewards, premium features, discounts or club card 22 program, the controller shall comply with such consumer's 23 opt-out preference signal but may notify such consumer of 24 such conflict and provide to such consumer the choice to 25 confirm such controller-specific privacy setting or 26 participation in such program. HB5581 - 22 - LRB103 38323 JRC 68458 b HB5581- 23 -LRB103 38323 JRC 68458 b HB5581 - 23 - LRB103 38323 JRC 68458 b HB5581 - 23 - LRB103 38323 JRC 68458 b 1 (e-5) If a controller responds to consumer opt-out 2 requests received pursuant to subsection (e) by informing the 3 consumer of a charge for the use of any product or service, the 4 controller shall present the terms of any financial incentive 5 offered pursuant to this Section for the retention, use, sale 6 or sharing of the consumer's personal data. 7 Section 35. Processor responsibilities. 8 (a) A processor shall adhere to the instructions of a 9 controller and shall assist the controller in meeting the 10 controller's obligations under this Act. Such assistance shall 11 include: 12 (1) Taking into account the nature of processing and 13 the information available to the processor, by appropriate 14 technical and organizational measures, insofar as is 15 reasonably practicable, to fulfill the controller's 16 obligation to respond to consumer rights requests; 17 (2) Taking into account the nature of processing and 18 the information available to the processor, by assisting 19 the controller in meeting the controller's obligations in 20 relation to the security of processing the personal data 21 and in relation to the notification of a breach of 22 security or of the system of the processor, in order to 23 meet the controller's obligations; and 24 (3) Providing necessary information to enable the 25 controller to conduct and document data protection HB5581 - 23 - LRB103 38323 JRC 68458 b HB5581- 24 -LRB103 38323 JRC 68458 b HB5581 - 24 - LRB103 38323 JRC 68458 b HB5581 - 24 - LRB103 38323 JRC 68458 b 1 assessments. 2 (b) A contract between a controller and a processor shall 3 govern the processor's data processing procedures with respect 4 to processing performed on behalf of the controller. The 5 contract shall be binding and clearly set forth instructions 6 for processing data, the nature and purpose of processing, the 7 type of data subject to processing, the duration of processing 8 and the rights and obligations of both parties. The contract 9 shall also require that the processor: 10 (1) Ensure that each person processing personal data 11 is subject to a duty of confidentiality with respect to 12 the data; 13 (2) At the controller's direction, delete or return 14 all personal data to the controller as requested at the 15 end of the provision of services, unless retention of the 16 personal data is required by law; 17 (3) Upon the reasonable request of the controller, 18 make available to the controller all information in its 19 possession necessary to demonstrate the processor's 20 compliance with the obligations in this Act; 21 (4) After providing the controller an opportunity to 22 object, engage any subcontractor pursuant to a written 23 contract that requires the subcontractor to meet the 24 obligations of the processor with respect to the personal 25 data; and 26 (5) Allow, and cooperate with, reasonable assessments HB5581 - 24 - LRB103 38323 JRC 68458 b HB5581- 25 -LRB103 38323 JRC 68458 b HB5581 - 25 - LRB103 38323 JRC 68458 b HB5581 - 25 - LRB103 38323 JRC 68458 b 1 by the controller or the controller's designated assessor, 2 or the processor may arrange for a qualified and 3 independent assessor to conduct an assessment of the 4 processor's policies and technical and organizational 5 measures in support of the obligations under this Act, 6 using an appropriate and accepted control standard or 7 framework and assessment procedure for such assessments. 8 The processor shall provide a report of such assessment to 9 the controller upon request. 10 (c) Nothing in this Section shall be construed to relieve 11 a controller or processor from the liabilities imposed on the 12 controller or processor by virtue of such controller's or 13 processor's role in the processing relationship, as described 14 in this Act. 15 (d) Determining whether a person is acting as a controller 16 or processor with respect to a specific processing of data is a 17 fact-based determination that depends upon the context in 18 which personal data is to be processed. A person who is not 19 limited in such person's processing of personal data pursuant 20 to a controller's instructions, or who fails to adhere to such 21 instructions, is a controller and not a processor with respect 22 to a specific processing of data. A processor that continues 23 to adhere to a controller's instructions with respect to a 24 specific processing of personal data remains a processor. If a 25 processor begins, alone or jointly with others, determining 26 the purposes and means of the processing of personal data, the HB5581 - 25 - LRB103 38323 JRC 68458 b HB5581- 26 -LRB103 38323 JRC 68458 b HB5581 - 26 - LRB103 38323 JRC 68458 b HB5581 - 26 - LRB103 38323 JRC 68458 b 1 processor is a controller with respect to such processing and 2 may be subject to an enforcement action Section 55. 3 Section 40. Heightened risk of harm. 4 (a) A controller shall conduct and document a data 5 protection assessment for each of the controller's processing 6 activities that presents a heightened risk of harm to a 7 consumer. For the purposes of this Section, processing that 8 presents a heightened risk of harm to a consumer includes: 9 (1) The processing of personal data for the purposes 10 of targeted advertising; 11 (2) The sale of personal data; 12 (3) The processing of personal data for the purposes 13 of profiling, where such profiling presents a reasonably 14 foreseeable risk of unfair or deceptive treatment of, or 15 unlawful disparate impact on, consumers, financial, 16 physical or reputational injury to consumers, a physical 17 or other intrusion upon the solitude or seclusion, or the 18 private affairs or concerns, of consumers, where such 19 intrusion would be offensive to a reasonable person, or 20 other substantial injury to consumers; and 21 (4) The processing of sensitive data. 22 (b) Data protection assessments conducted pursuant to 23 subsection (a) shall identify and weigh the benefits that may 24 flow, directly and indirectly, from the processing to the 25 controller, the consumer, other stakeholders and the public HB5581 - 26 - LRB103 38323 JRC 68458 b HB5581- 27 -LRB103 38323 JRC 68458 b HB5581 - 27 - LRB103 38323 JRC 68458 b HB5581 - 27 - LRB103 38323 JRC 68458 b 1 against the potential risks to the rights of the consumer 2 associated with such processing, as mitigated by safeguards 3 that can be employed by the controller to reduce such risks. 4 The controller shall factor into any such data protection 5 assessment the use of deidentified data and the reasonable 6 expectations of consumers, as well as the context of the 7 processing and the relationship between the controller and the 8 consumer whose personal data will be processed. 9 (c) The Attorney General may require that a controller 10 disclose any data protection assessment that is relevant to an 11 investigation conducted by the Attorney General, and the 12 controller shall make the data protection assessment available 13 to the Attorney General. The Attorney General may evaluate the 14 data protection assessment for compliance with the 15 responsibilities set forth in this Act. Data protection 16 assessments shall be confidential and shall be exempt from 17 disclosure under 5 ILCS 120. To the extent any information 18 contained in a data protection assessment disclosed to the 19 Attorney General includes information subject to 20 attorney-client privilege or work product protection, such 21 disclosure shall not constitute a waiver of such privilege or 22 protection. 23 (d) A single data protection assessment may address a 24 comparable set of processing operations that include similar 25 activities. 26 (e) If a controller conducts a data protection assessment HB5581 - 27 - LRB103 38323 JRC 68458 b HB5581- 28 -LRB103 38323 JRC 68458 b HB5581 - 28 - LRB103 38323 JRC 68458 b HB5581 - 28 - LRB103 38323 JRC 68458 b 1 for the purpose of complying with another applicable law or 2 regulation, the data protection assessment shall be deemed to 3 satisfy the requirements established in this Section if such 4 data protection assessment is reasonably similar in scope and 5 effect to the data protection assessment that would otherwise 6 be conducted pursuant to this Section. 7 (f) Data protection assessment requirements shall apply to 8 processing activities created or generated after July 1, 2024, 9 and are not retroactive. 10 Section 45. Deidentified data. 11 (a) Any controller in possession of deidentified data 12 shall: 13 (1) Take reasonable measures to ensure that the data 14 cannot be associated with an individual; 15 (2) Publicly commit to maintaining and using 16 deidentified data without attempting to reidentify the 17 data; and 18 (3) Contractually obligate any recipients of the 19 deidentified data to comply with all provisions of this 20 Act. 21 (b) Nothing in this Act shall be construed to: 22 (1) Require a controller or processor to reidentify 23 deidentified data or pseudonymous data; or 24 (2) Maintain data in identifiable form, or collect, 25 obtain, retain, or access any data or technology, in order HB5581 - 28 - LRB103 38323 JRC 68458 b HB5581- 29 -LRB103 38323 JRC 68458 b HB5581 - 29 - LRB103 38323 JRC 68458 b HB5581 - 29 - LRB103 38323 JRC 68458 b 1 to be capable of associating an authenticated consumer 2 request with personal data. 3 (c) Nothing in this Act shall be construed to require a 4 controller or processor to comply with an authenticated 5 consumer rights request if the controller: 6 (1) Is not reasonably capable of associating the 7 request with the personal data or it would be unreasonably 8 burdensome for the controller to associate the request 9 with the personal data; 10 (2) Does not use the personal data to recognize or 11 respond to the specific consumer who is the subject of the 12 personal data, or associate the personal data with other 13 personal data about the same specific consumer; and 14 (3) Does not sell the personal data to any third party 15 or otherwise voluntarily disclose the personal data to any 16 third party other than a processor, except as otherwise 17 permitted in this Section. 18 (d) The rights afforded under paragraphs (1) through (4) 19 of subsection (a) of Section 20 shall not apply to 20 pseudonymized data in cases where the controller is able to 21 demonstrate that any information necessary to identify the 22 consumer is kept separately and is subject to effective 23 technical and organizational controls that prevent the 24 controller from accessing such information. 25 (e) A controller that discloses pseudonymous data or 26 deidentified data shall exercise reasonable oversight to HB5581 - 29 - LRB103 38323 JRC 68458 b HB5581- 30 -LRB103 38323 JRC 68458 b HB5581 - 30 - LRB103 38323 JRC 68458 b HB5581 - 30 - LRB103 38323 JRC 68458 b 1 monitor compliance with any contractual commitments to which 2 the pseudonymous data or deidentified data is subject and 3 shall take appropriate steps to address any breaches of those 4 contractual commitments. 5 Section 50. Controller responsibilities and obligations. 6 (a) Nothing in this Act shall be construed to restrict a 7 controller's or processor's ability to: 8 (1) Comply with federal, State or municipal ordinances 9 or regulations; 10 (2) Comply with a civil, criminal or regulatory 11 inquiry, investigation, subpoena or summons by federal, 12 State, municipal or other governmental authorities; 13 (3) Cooperate with law enforcement agencies concerning 14 conduct or activity that the controller or processor 15 reasonably and in good faith believes may violate federal, 16 State or municipal ordinances or regulations; 17 (4) Investigate, establish, exercise, prepare for or 18 defend legal claims; 19 (5) Provide a product or service specifically 20 requested by a consumer; 21 (6) Perform under a contract to which a consumer is a 22 party, including fulfilling the terms of a written 23 warranty; 24 (7) Take steps at the request of a consumer prior to 25 entering into a contract; HB5581 - 30 - LRB103 38323 JRC 68458 b HB5581- 31 -LRB103 38323 JRC 68458 b HB5581 - 31 - LRB103 38323 JRC 68458 b HB5581 - 31 - LRB103 38323 JRC 68458 b 1 (8) Take immediate steps to protect an interest that 2 is essential for the life or physical safety of the 3 consumer or another individual, and where the processing 4 cannot be manifestly based on another legal basis; 5 (9) Prevent, detect, protect against or respond to 6 security incidents, identity theft, fraud, harassment, 7 malicious or deceptive activities or any illegal activity, 8 preserve the integrity or security of systems or 9 investigate, report or prosecute those responsible for any 10 such action; 11 (10) Engage in public or peer-reviewed scientific or 12 statistical research in the public interest that adheres 13 to all other applicable ethics and privacy laws and is 14 approved, monitored and governed by an institutional 15 review board that determines, or similar independent 16 oversight entities that determine: 17 (A) Whether the deletion of the information is 18 likely to provide substantial benefits that do not 19 exclusively accrue to the controller, 20 (B) The expected benefits of the research outweigh 21 the privacy risks, and 22 (C) Whether the controller has implemented 23 reasonable safeguards to mitigate privacy risks 24 associated with research, including any risks 25 associated with reidentification; 26 (11) Assist another controller, processor, or third HB5581 - 31 - LRB103 38323 JRC 68458 b HB5581- 32 -LRB103 38323 JRC 68458 b HB5581 - 32 - LRB103 38323 JRC 68458 b HB5581 - 32 - LRB103 38323 JRC 68458 b 1 party with any of the obligations under this Act; or 2 (12) Process personal data for reasons of public 3 interest in the area of public health, community health or 4 population health, but solely to the extent that such 5 processing is: 6 (A) Subject to suitable and specific measures to 7 safeguard the rights of the consumer whose personal 8 data is being processed, and 9 (B) Under the responsibility of a professional 10 subject to confidentiality obligations under federal, 11 State or local law. 12 (b) The obligations imposed on controllers or processors 13 under this Act shall not restrict a controller's or 14 processor's ability to collect, use or retain data for 15 internal use to: 16 (1) Conduct internal research to develop, improve or 17 repair products, services or technology; 18 (2) Effectuate a product recall; 19 (3) Identify and repair technical errors that impair 20 existing or intended functionality; or 21 (4) Perform internal operations that are reasonably 22 aligned with the expectations of the consumer or 23 reasonably anticipated based on the consumer's existing 24 relationship with the controller, or are otherwise 25 compatible with processing data in furtherance of the 26 provision of a product or service specifically requested HB5581 - 32 - LRB103 38323 JRC 68458 b HB5581- 33 -LRB103 38323 JRC 68458 b HB5581 - 33 - LRB103 38323 JRC 68458 b HB5581 - 33 - LRB103 38323 JRC 68458 b 1 by a consumer or the performance of a contract to which the 2 consumer is a party. 3 (c) The obligations imposed on controllers or processors 4 under this Act shall not apply where compliance by the 5 controller or processor with said Sections would violate an 6 evidentiary privilege under the laws of this State. Nothing in 7 this Act shall be construed to prevent a controller or 8 processor from providing personal data concerning a consumer 9 to a person covered by an evidentiary privilege under the laws 10 of the State as part of a privileged communication. 11 (d) A controller or processor that discloses personal data 12 to a processor or third-party controller in accordance with 13 this Act shall not be deemed to have violated said Sections if 14 the processor or third-party controller that receives and 15 processes such personal data violates said Sections, provided, 16 at the time the disclosing controller or processor disclosed 17 such personal data, the disclosing controller or processor did 18 not have actual knowledge that the receiving processor or 19 third-party controller would violate said Sections. A 20 third-party controller or processor receiving personal data 21 from a controller or processor in compliance with this Act is 22 likewise not in violation of said Sections for the 23 transgressions of the controller or processor from which such 24 third-party controller or processor receives such personal 25 data. 26 (e) Nothing in this Act shall be construed to: HB5581 - 33 - LRB103 38323 JRC 68458 b HB5581- 34 -LRB103 38323 JRC 68458 b HB5581 - 34 - LRB103 38323 JRC 68458 b HB5581 - 34 - LRB103 38323 JRC 68458 b 1 (1) Impose any obligation on a controller or processor 2 that adversely affects the rights or freedoms of any 3 person, including, but not limited to, the rights of any 4 person to freedom of speech or freedom of the press 5 guaranteed in the First Amendment to the United States 6 Constitution; or 7 (2) Apply to any person's processing of personal data 8 in the course of such person's purely personal or 9 household activities. 10 (f) Personal data processed by a controller pursuant to 11 this Section may be processed to the extent that such 12 processing is: 13 (1) Reasonably necessary and proportionate to the 14 purposes listed in this Section; and 15 (2) Adequate, relevant and limited to what is 16 necessary in relation to the specific purposes listed in 17 this Section. Personal data collected, used or retained 18 under paragraph (2) of subsection (a), where applicable, 19 take into account the nature and purpose or purposes of 20 such collection, use or retention. Such data shall be 21 subject to reasonable administrative, technical and 22 physical measures to protect the confidentiality, 23 integrity and accessibility of the personal data and to 24 reduce reasonably foreseeable risks of harm to consumers 25 relating to such collection, use or retention of personal 26 data. HB5581 - 34 - LRB103 38323 JRC 68458 b HB5581- 35 -LRB103 38323 JRC 68458 b HB5581 - 35 - LRB103 38323 JRC 68458 b HB5581 - 35 - LRB103 38323 JRC 68458 b 1 (g) If a controller processes personal data pursuant to an 2 exemption in this Section, the controller bears the burden of 3 demonstrating that such processing qualifies for the exemption 4 and complies with the requirements in subsection (f). 5 (h) Processing personal data for the purposes expressly 6 identified in this Section shall not solely make a legal 7 entity a controller with respect to such processing. 8 Section 55. Notice; enforcement. 9 (a) The Attorney General shall have exclusive authority to 10 enforce violations under this Act. 11 (b) During the period beginning January 1, 2025 and ending 12 December 31, 2025, the Attorney General shall, and following 13 said period the Attorney General may, prior to initiating any 14 action for a violation under this Act, issue a notice of 15 violation to the controller if the Attorney General determines 16 that a cure is possible. If the controller fails to cure such 17 violation within 60 days of receipt of the notice of 18 violation, the Attorney General may bring an action pursuant 19 to this Section. 20 (c) Beginning January 1, 2026, in determining whether to 21 grant a controller or processor the opportunity to cure an 22 alleged violation described under this Act, the Attorney 23 General may consider: 24 (1) The number of violations; 25 (2) The size and complexity of the controller or HB5581 - 35 - LRB103 38323 JRC 68458 b HB5581- 36 -LRB103 38323 JRC 68458 b HB5581 - 36 - LRB103 38323 JRC 68458 b HB5581 - 36 - LRB103 38323 JRC 68458 b 1 processor; 2 (3) The nature and extent of the controller's or 3 processor's processing activities; 4 (4) The substantial likelihood of injury to the 5 public; 6 (5) The safety of persons or property; and 7 (6) Whether such alleged violation was likely caused 8 by human or technical error. 9 (d) Nothing in this Act shall be construed as providing 10 the basis for, or be subject to, a private right of action for 11 violations under this Act or any other law. 12 (e) A violation under this Act shall constitute an unfair 13 method of competition or any unfair or deceptive act or 14 practice in the conduct of any trade or commerce within this 15 State under the Consumer Fraud and Deceptive Business 16 Practices Act and shall be enforced by the Attorney General. 17 Section 60. Compliance with other law. An individual or 18 entity covered by this Act and other law regarding third-party 19 providers of information and services is required to comply 20 with both laws, provided, however, that to the extent there is 21 a direct conflict between the 2 laws which precludes 22 compliance with both statutes, the individual or entity shall 23 comply with the statute that provides the greater measure of 24 privacy protection to individuals. For purposes of this 25 Section, an "opt-in" procedure for an individual to grant HB5581 - 36 - LRB103 38323 JRC 68458 b HB5581- 37 -LRB103 38323 JRC 68458 b HB5581 - 37 - LRB103 38323 JRC 68458 b HB5581 - 37 - LRB103 38323 JRC 68458 b 1 consent for the disclosure of personal information shall be 2 deemed to provide a greater measure of protection of privacy 3 than the "opt-out" procedure established under this Act. HB5581 - 37 - LRB103 38323 JRC 68458 b