Maryland 2023 Regular Session

Maryland Senate Bill SB844 Compare Versions

Only one version of the bill is available at this time.
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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
55 *sb0844*
66
77 SENATE BILL 844
88 I3, S1 3lr1979
99 CF HB 901
1010 By: Senators Kramer and West
1111 Introduced and read first time: February 6, 2023
1212 Assigned to: Finance
1313
1414 A BILL ENTITLED
1515
1616 AN ACT concerning 1
1717
1818 Consumer Protection – Online Products and Services – Children’s Data 2
1919
2020 FOR the purpose of requiring a business that offers an online product likely to be accessed 3
2121 by children to complete a certain data protection impact assessment under certain 4
2222 circumstances; prohibiting a business from offering a certain online product before 5
2323 completing a data protection impact assessment; requiring businesses to document 6
2424 certain risks associated with certain online products; requiring certain privacy 7
2525 protections for certain online products; prohibiting certain data collection and 8
2626 sharing practices; providing certain exemptions; and generally relating to the 9
2727 protection of online privacy of children. 10
2828
2929 BY adding to 11
3030 Article – Commercial Law 12
3131 Section 14–4501 through 14–4513 to be under the new subtitle “Subtitle 45. 13
3232 Maryland Age–Appropriate Design Code Act” 14
3333 Annotated Code of Maryland 15
3434 (2013 Replacement Volume and 2022 Supplement) 16
3535
3636 Preamble 17
3737
3838 WHEREAS, The United Nations Convention on the Rights of the Child recognizes 18
3939 that children need special safeguards and care in all aspects of their lives, specifying how 19
4040 children’s rights apply in the digital environment in General Comment No. 25; and 20
4141
4242 WHEREAS, As children spend more of their time interacting with the online world, 21
4343 the impact of the design of online products on their well–being has become a focus of 22
4444 significant concern; and 23
4545
4646 WHEREAS, There is widespread agreement at the international level, and 24
4747 bipartisan agreement in the United States, that more needs to be done to create a safer 25
4848 online space for children to learn, explore, and play; and 26 2 SENATE BILL 844
4949
5050
5151
5252 WHEREAS, Lawmakers around the globe have taken steps to enhance privacy 1
5353 protections for children based on the understanding that, in relation to data protection, 2
5454 greater privacy necessarily means greater security and well–being; and 3
5555
5656 WHEREAS, Children should be afforded protections not only by online products and 4
5757 services specifically directed at them, but by all online products they are likely to access, 5
5858 and thus businesses should take into account the unique needs of different age ranges, 6
5959 including the following developmental stages: 0 to 5 years of age, or “preliterate and early 7
6060 literacy”; 6 to 9 years of age, or “core primary school years”; 10 to 12 years of age, or 8
6161 “transition years”; 13 to 15 years of age, or “early teens”; and 16 to 17 years of age, or 9
6262 “approaching adulthood”; and 10
6363
6464 WHEREAS, While it is clear that the same data protection regime may not be 11
6565 appropriate for children of all ages, children of all ages should nonetheless be afforded 12
6666 privacy and protection, and online products should adopt data protection regimes 13
6767 appropriate for children of the ages likely to access those products; and 14
6868
6969 WHEREAS, According to the Pew Research Center, in 20 22, 97% of American 15
7070 teenagers aged 13–17 used the Internet every day, with 46% responding they used the 16
7171 Internet almost constantly; and, additionally, 36% of teens reported being concerned about 17
7272 their social media use, while an earlier Pew Research Center study found that 59% of teens 18
7373 have been bullied or harassed online; and 19
7474
7575 WHEREAS, The findings of the Pew Research Center are not surprising, given what 20
7676 is known about controllers’ use of personal data and how it is utilized to inform 21
7777 manipulative practices, to which children are particularly vulnerable; and 22
7878
7979 WHEREAS, Online products that are likely to be accessed by children should offer 23
8080 strong privacy protections by design and by default, including by disabling features that 24
8181 profile children using their previous behavior, browsing history, or assumptions of their 25
8282 similarity to other children in order to offer them detrimental material; and 26
8383
8484 WHEREAS, Ensuring robust privacy, and thus safety, protections for children by 27
8585 design is consistent with federal safety laws and policies applied to children’s products, 28
8686 regulating everything from toys to clothing to furniture and games; and 29
8787
8888 WHEREAS, The consumer protections that federal safety laws apply to children’s 30
8989 products require these products to comply with certain safety standards by their very 31
9090 design, so that harms to children, and in some cases other consumers, are prevented; and 32
9191
9292 WHEREAS, It is the intent of the Maryland General Assembly that the Maryland 33
9393 Age–Appropriate Design Code Act promote innovation by businesses whose online products 34
9494 are likely to be accessed by children by ensuring that those online products are designed in 35
9595 a manner that recognizes the distinct needs of children within different age ranges; and 36
9696 SENATE BILL 844 3
9797
9898
9999 WHEREAS, It is the intent of the Maryland General Assembly that businesses 1
100100 covered by the Maryland Age–Appropriate Design Code Act may look to guidance and 2
101101 innovation in response to the Age–Appropriate Design Code established in the United 3
102102 Kingdom and California when developing online products that are likely to be accessed by 4
103103 children; now, therefore, 5
104104
105105 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
106106 That the Laws of Maryland read as follows: 7
107107
108108 Article – Commercial Law 8
109109
110110 SUBTITLE 45. MARYLAND AGE–APPROPRIATE DESIGN CODE ACT. 9
111111
112112 14–4501. 10
113113
114114 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 11
115115 INDICATED. 12
116116
117117 (B) (1) “AGGREGATE CONSUMER IN FORMATION” MEANS INFORMATION : 13
118118
119119 (I) THAT RELATES TO A GRO UP OR CATEGORY OF CO NSUMERS; 14
120120
121121 (II) FROM WHICH INDIVIDUAL CONSUMER IDENTITIES HAVE 15
122122 BEEN REMOVED ; AND 16
123123
124124 (III) THAT IS NOT LINKED OR REASONABLY LINKABLE TO ANY 17
125125 CONSUMER OR HOUSEHOL D, INCLUDING BY A DEVIC E. 18
126126
127127 (2) “AGGREGATE CONSUMER IN FORMATION” DOES NOT INCLUDE 19
128128 INDIVIDUAL CONSUMER RECORDS THAT HAVE BE EN DEIDENTIFIED . 20
129129
130130 (C) (1) “BUSINESS” MEANS A SOLE PROPRIE TORSHIP, LIMITED LIABILITY 21
131131 COMPANY, CORPORATION , ASSOCIATION, OR OTHER LEGAL ENTIT Y THAT: 22
132132
133133 (I) IS ORGANIZED OR OPERA TED FOR THE PROFIT O R 23
134134 FINANCIAL BENEFIT OF ITS SHAREHOLDERS OR OTHER OWNERS ; 24
135135
136136 (II) COLLECTS CONSUMERS ’ PERSONAL INFORMATION , OR ON 25
137137 THE BEHALF OF WHICH ANOTHER COLLECTS CON SUMERS’ PERSONAL 26
138138 INFORMATION ; 27
139139
140140 (III) ALONE, OR JOINTLY WITH ITS AFFILIATES OR 28
141141 SUBSIDIARIES, DETERMINES THE PURPO SES AND MEANS OF THE PROCESSING OF 29
142142 CONSUMERS ’ PERSONAL INFORMATION ; 30 4 SENATE BILL 844
143143
144144
145145
146146 (IV) DOES BUSINESS IN THE STATE; AND 1
147147
148148 (V) SATISFIES AT LEAST ON E OF THE FOLLOWING C RITERIA: 2
149149
150150 1. THE BUSINESS HAS ANNU AL GROSS REVENUES IN 3
151151 EXCESS OF $25,000,000, ADJUSTED EVERY ODD –NUMBERED YEAR TO REF LECT 4
152152 ADJUSTMENTS IN THE CONSUMER PRICE INDEX; 5
153153
154154 2. THE BUSINESS ANNUALLY BUYS, RECEIVES, SELLS, 6
155155 OR SHARES THE PERSON AL INFORMATION OF 50,000 OR MORE CONSUMERS , 7
156156 HOUSEHOLDS , OR DEVICES, ALONE OR IN COMBINAT ION WITH ITS AFFILIA TES OR 8
157157 SUBSIDIARIES, AND FOR THE BUSINESS ’S COMMERCIAL PURPOSE S; OR 9
158158
159159 3. THE BUSINESS DERIVES AT LEAST 50% OF ITS 10
160160 ANNUAL REVENUES FROM THE SALE OF CONSUMER S’ PERSONAL INFORMATION . 11
161161
162162 (2) “BUSINESS” INCLUDES: 12
163163
164164 (I) AN ENTITY THAT CONTRO LS OR IS CONTROLLED BY A 13
165165 BUSINESS AND THAT SH ARES COMMON BRANDING WITH THAT BUSINESS ; AND 14
166166
167167 (II) A JOINT VENTURE OR PAR TNERSHIP COMPOSED OF 15
168168 BUSINESSES IN WHICH EACH HAS AT LEAST A 40% INTEREST IN THE JOIN T VENTURE 16
169169 OR PARTNERSHIP . 17
170170
171171 (D) “CHILD” MEANS A CONSUMER THA T IS UNDER THE AGE O F 18 YEARS. 18
172172
173173 (E) “COLLECT” MEANS TO ACTIVELY OR PASSIVELY BUY , RENT, GATHER, 19
174174 OBTAIN, RECEIVE, OR ACCESS ANY PERSON AL INFORMATION PERTA INING TO A 20
175175 CONSUMER OR OBSERVE A CONSUMER ’S BEHAVIOR, BY ANY MEANS. 21
176176
177177 (F) “COMMON BRANDING ” MEANS A SHARED NAME , SERVICE MARK , OR 22
178178 TRADEMARK THAT WOULD CAUSE A REASONABLE C ONSUMER TO UND ERSTAND 23
179179 THAT TWO OR MORE ENT ITIES ARE COMMONLY O WNED. 24
180180
181181 (G) “CONSUMER” MEANS AN INDIVIDUAL WHO IS A RESIDENT OF THE 25
182182 STATE, HOWEVER IDENTIFIED , INCLUDING BY ANY UNI QUE IDENTIFIER. 26
183183
184184 (H) “CONTROL” MEANS: 27
185185
186186 (1) OWNERSHIP OF OR THE P OWER TO VOTE MORE TH AN 50% OF THE 28
187187 OUTSTANDING SHARES O F ANY CLASS OF VOTIN G SECURITY OF A BUSI NESS; 29 SENATE BILL 844 5
188188
189189
190190
191191 (2) ANY MANNER OF CONTROL OVER THE ELECTION OF A MAJORITY 1
192192 OF THE DIRECTORS OF A BUSINESS, OR INDIVIDUALS EXERC ISING SIMILAR 2
193193 FUNCTIONS; OR 3
194194
195195 (3) THE POWER TO EXERCISE A CONTROLLIN G INFLUENCE OVER THE 4
196196 MANAGEMENT OF A BUSI NESS. 5
197197
198198 (I) “DARK PATTERN ” MEANS A USER INTERFA CE DESIGNED OR 6
199199 MANIPULATED WITH THE SUBSTANTIAL EFFECT O F SUBVERTING OR IMPA IRING 7
200200 USER AUTONOMY , DECISION MAKING , OR CHOICE. 8
201201
202202 (J) “DATA PROTECTION IMPAC T ASSESSMENT” OR “ASSESSMENT” MEANS A 9
203203 SYSTEMATIC SURVEY TO ASSESS AND MITIGATE RISKS TO CHILDREN WH O ARE 10
204204 REASONABLY LIKELY TO ACCESS THE ONLINE PR ODUCT AT ISSUE THAT ARISE FROM 11
205205 THE DATA MANAGEMENT PRACTICES OF THE BUS INESS AND THE PROVIS ION OF THE 12
206206 ONLINE PRODUCT . 13
207207
208208 (K) “DEFAULT” MEANS A PRESELECTED OPTION ADOPTED BY TH E 14
209209 BUSINESS FOR AN ONLI NE PRODUCT. 15
210210
211211 (L) “DEIDENTIFIED INFORMAT ION” MEANS INFORMATION TH AT CANNOT 16
212212 BE USED TO REASONABL Y INFER INFORMATION ABOUT, OR OTHERWISE BE LINK ED 17
213213 TO, A PARTICULAR CONSUME R, IF THE BUSINE SS THAT POSSESSES TH E 18
214214 INFORMATION : 19
215215
216216 (1) TAKES REASONABLE MEAS URES TO ENSURE THAT THE 20
217217 INFORMATION CANNOT B E ASSOCIATED WITH A CONSUMER OR HOUSEHOL D; 21
218218
219219 (2) COMMITS IN PUBLICLY A VAILABLE TERMS AND C ONDITIONS OR IN 22
220220 A PUBLICLY AVAILABLE PRIVACY POLICY TO : 23
221221
222222 (I) MAINTAIN AND USE THE INFORMATION IN DEIDE NTIFIED 24
223223 FORM; AND 25
224224
225225 (II) NOT ATTEMPT TO REIDEN TIFY THE INFORMATION , EXCEPT 26
226226 FOR THE SOLE PURPOSE OF DETERMINING WHETH ER THE BUSINESS ’S 27
227227 DEIDENTIFICATION PRO CESS SATISFIES THE R EQUIREMENTS OF THIS SUBSECTION; 28
228228 AND 29
229229
230230 (3) CONTRACTUALLY OBLIGAT ES ANY RECIPIENTS OF THE 30
231231 INFORMATION TO COMPL Y WITH ALL PROVISION S OF THIS SUBSECTION . 31
232232 6 SENATE BILL 844
233233
234234
235235 (M) “LIKELY TO BE ACCESSED BY CHILDREN ” MEANS REASONABLY 1
236236 EXPECTED THAT THE ON LINE SERVICE , PRODUCT, OR FEATURE WOULD BE 2
237237 ACCESSED BY CHIL DREN, BASED ON SATISFYING ANY OF THE FOLLOWING CRITERIA: 3
238238
239239 (1) THE ONLINE PRODUCT IS DIRECTED TO CHILDREN AS DEFINED IN 4
240240 THE FEDERAL CHILDREN’S ONLINE PRIVACY PROTECTION ACT; 5
241241
242242 (2) THE ONLINE PRODUCT IS DETERMINED , BASED ON COMPETENT 6
243243 AND RELIABLE EVIDENC E REGARDING AUDIENCE C OMPOSITION, TO BE ROUTINELY 7
244244 ACCESSED BY A SIGNIF ICANT NUMBER OF CHIL DREN; 8
245245
246246 (3) THE ONLINE PRODUCT IS SUBSTANTIALLY SIMILA R OR THE SAME 9
247247 AS AN ONLINE PRODUCT THAT SATISFIES ITEM (2) OF THIS SUBSECTION ; 10
248248
249249 (4) THE ONLINE PRODUCT FE ATURES ADVERTISEMENTS MAR KETED 11
250250 TO CHILDREN; 12
251251
252252 (5) THE ONLINE PRODUCT HA S DESIGN ELEMENTS TH AT ARE KNOWN 13
253253 TO BE OF INTEREST TO CHILDREN, SUCH AS GAMES , CARTOONS, MUSIC, AND 14
254254 CELEBRITIES WHO APPE AL TO CHILDREN ; OR 15
255255
256256 (6) THE BUSINESS KNOWS , BASED ON INTERNAL RE SEARCH, THAT A 16
257257 SIGNIFICANT AMOUNT O F THE ONLINE PRODUCT ’S AUDIENCE IS CHILDR EN. 17
258258
259259 (N) (1) “ONLINE PRODUCT ” MEANS AN ONLINE SERV ICE, PRODUCT, OR 18
260260 FEATURE. 19
261261
262262 (2) “ONLINE PRODUCT ” DOES NOT INCLUDE : 20
263263
264264 (I) A TELECOMMUNICATIONS S ERVICE, AS DEFINED IN 47 21
265265 U.S.C. § 153; OR 22
266266
267267 (II) THE DELIVERY OR USE O F A PHYSICAL PRODUCT SOLD BY 23
268268 AN ONLINE RETAILER . 24
269269
270270 (O) (1) “PERSONAL INFORMATION ” MEANS INFORMATION TH AT 25
271271 IDENTIFIES, RELATES TO , DESCRIBES, IS REASONABLY CAPABL E OF BEING 26
272272 ASSOCIATED WITH , OR COULD REASONABLY BE LINKED, DIRECTLY OR INDIRECT LY, 27
273273 WITH A PARTICULAR CO NSUMER OR HOUSEHOLD . 28
274274
275275 (2) “PERSONAL INFORMATION ” DOES NOT INCLUDE : 29
276276 SENATE BILL 844 7
277277
278278
279279 (I) PUBLICLY AVAILABLE IN FORMATION OR LAWFULL Y 1
280280 OBTAINED, TRUTHFUL INFORMATION THAT IS OF PUBLIC CO NCERN; OR 2
281281
282282 (II) CONSUMER INFORMATION THAT IS DEIDENTIFIED OR 3
283283 AGGREGATE CONSUMER I NFORMATION . 4
284284
285285 (P) “PRECISE GEOLOCATION ” MEANS ANY DATA THAT IS: 5
286286
287287 (1) DERIVED FROM A DEVICE ; AND 6
288288
289289 (2) USED OR INTENDED TO B E USED TO LOCATE A C ONSUMER WITHIN 7
290290 A GEOGRAPHIC AREA TH AT IS LESS THAN OR E QUAL TO THE AREA OF A CIRCLE WIT H 8
291291 A RADIUS OF 1,850 FEET. 9
292292
293293 (Q) (1) “PROFILING” MEANS ANY FORM OF AU TOMATED PROCESSING O F 10
294294 PERSONAL INFORMATION THAT USES PERSONAL I NFORMATION TO EVALUA TE 11
295295 CERTAIN ASPECTS RELA TING TO AN INDIVIDUA L. 12
296296
297297 (2) “PROFILING” INCLUDES ANALYZING OR PREDICTING ASPECT S 13
298298 CONCERNING AN INDIVI DUAL’S PERFORMANCE AT WOR K, ECONOMIC SITUATION , 14
299299 HEALTH, PERSONAL PREFERENCES , INTERESTS, RELIABILITY, BEHAVIOR, 15
300300 LOCATION, OR MOVEMENTS . 16
301301
302302 (R) (1) “PUBLICLY AVAILABLE IN FORMATION” MEANS INFORMATION 17
303303 THAT: 18
304304
305305 (I) IS LAWFULLY MADE AVAILA BLE FROM FEDERAL , STATE, OR 19
306306 LOCAL GOVERNMENT REC ORDS; OR 20
307307
308308 (II) A BUSINESS HAS A REASO NABLE BASIS TO BELIE VE IS 21
309309 LAWFULLY MADE AVAILA BLE TO THE GENERAL P UBLIC BY THE CONSUME R OR BY 22
310310 WIDELY DISTRIBUTED M EDIA. 23
311311
312312 (2) “PUBLICLY AVAILABLE I NFORMATION ” DOES NOT INCLUDE 24
313313 BIOMETRIC INFORMATIO N COLLECTED BY A BUS INESS ABOUT A CONSUM ER 25
314314 WITHOUT THE CONSUMER ’S KNOWLEDGE . 26
315315
316316 (S) “SELL” MEANS TO TRANSFER , RENT, RELEASE, DISCLOSE, 27
317317 DISSEMINATE, MAKE AVAILABLE , OR OTHERWISE COMMUNI CATE, WHETHER 28
318318 ORALLY, IN WRITING, OR BY ELECTRONIC OR OTHER MEANS , A CONSUMER ’S 29
319319 PERSONAL INFORMATION BY THE BUSINESS TO A THIRD PARTY FOR MONE TARY OR 30
320320 OTHER VALUABLE CONSI DERATION. 31
321321 8 SENATE BILL 844
322322
323323
324324 (T) (1) “SENSITIVE PERSONAL IN FORMATION” MEANS: 1
325325
326326 (I) PERSONAL INFORMATION THAT REVEALS A CONSU MER’S: 2
327327
328328 1. SOCIAL SECURITY NUMBER , DRIVER’S LICENSE 3
329329 NUMBER, STATE IDENTIFICATION CARD NUMBER , OR PASSPORT NUMBER ; 4
330330
331331 2. ACCOUNT LOGIN INFORMA TION, FINANCIAL 5
332332 ACCOUNT NUMBER , DEBIT CARD NUMBER , OR CREDIT CARD NUMBE R, IN 6
333333 COMBINATION WITH ANY REQUIRED SEC URITY OR ACCESS CODE , PASSWORD, OR 7
334334 CREDENTIALS THAT ALL OW ACCESS TO AN ACCO UNT; 8
335335
336336 3. PRECISE GEOLOCATION ; 9
337337
338338 4. RACIAL OR ETHNIC ORIG IN OR RELIGIOUS OR 10
339339 PHILOSOPHICAL BELIEF S; 11
340340
341341 5. UNION MEMBERSHIP STAT US; 12
342342
343343 6. MAIL, E–MAIL, TEXT, OR MESSAGE CONTENTS, 13
344344 UNLESS THE BUSINESS IS THE INTENDED RECI PIENT; OR 14
345345
346346 7. GENETIC DATA; 15
347347
348348 (II) BIOMETRIC INFORMATION THAT IS OR MAY BE PR OCESSED 16
349349 FOR THE PURPOSE OF U NIQUELY IDENTIFYING A CONSUMER ; 17
350350
351351 (III) PERSONAL INFORMATION COLLECTED AND ANALYZ ED 18
352352 CONCERNIN G A CONSUMER ’S HEALTH; OR 19
353353
354354 (IV) PERSONAL INFORMATION COLLECTED AND ANALYZ ED 20
355355 CONCERNING A CONSUME R’S SEX LIFE OR SEXUAL ORIENTATION . 21
356356
357357 (2) “SENSITIVE PERSONAL IN FORMATION” DOES NOT INCLUDE 22
358358 PUBLICLY AVAILABLE I NFORMATION . 23
359359
360360 (U) “SHARE” MEANS TO RENT , RELEASE, DISCLOSE, DISSEMINATE, MAKE 24
361361 AVAILABLE, TRANSFER, OR OTHERWISE COMMUNI CATE, WHETHER ORALLY , IN 25
362362 WRITING, OR BY ELECTRONIC OR OTHER MEANS , A CONSUMER ’S PERSONAL 26
363363 INFORMATION TO A THI RD PARTY FOR CROSS –CONTEXT BEHAVIORAL A DVERTISING 27
364364 WHETHER OR NOT FOR M ONETARY OR OTHER VAL UABLE CONSIDERATION , 28
365365 INCLUDING IN A TRANS ACTION BETWEEN A BUS INESS AND A THIRD PA RTY FOR 29 SENATE BILL 844 9
366366
367367
368368 CROSS–CONTEXT BEHAVIORAL A DVERTISING FOR THE B ENEFIT OF A BUSINESS IN 1
369369 WHICH NO MONEY IS EX CHANGED. 2
370370
371371 (V) “THIRD PARTY” MEANS A PERSON WHO IS NO T: 3
372372
373373 (1) THE BUSINESS WITH WHI CH THE CONSUMER INTE NTIONALLY 4
374374 INTERACTS AND THAT C OLLECTS PERSONAL INF ORMATION FROM THE CO NSUMER 5
375375 AS PART OF THE CONSU MER’S INTERACTION WITH T HE BUSINESS; OR 6
376376
377377 (2) A SERVICE PROVIDER FOR THE BUSINESS. 7
378378
379379 14–4502. 8
380380
381381 THIS SUBTITLE DOES NO T APPLY TO: 9
382382
383383 (1) PROTECTED HEALTH INFO RMATION THAT IS COLL ECTED BY A 10
384384 COVERED ENTITY OR BU SINESS ASSOCIATION G OVERNED BY THE PRIVA CY 11
385385 SECURITY AND BREACH NOTIFICATION RULES I N 45 C.F.R. PARTS 160 AND 164, 12
386386 ESTABLISHED UNDER TH E FEDERAL HEALTH INSURANCE PORTABILITY AND 13
387387 ACCOUNTABILITY ACT OF 1996 AND THE FEDERAL HEALTH INFORMATION 14
388388 TECHNOLOGY FOR ECONOMIC AND CLINICAL HEALTH ACT; 15
389389
390390 (2) A HEALTH PROVIDER OR C OVERED ENTITY GOVERN ED BY THE 16
391391 PRIVACY SECURITY AND BREACH NOTIFICATION RULES IN 45 C.F.R. PARTS 160 AND 17
392392 164, ESTABLISHED UNDER TH E FEDERAL HEALTH INSURANCE PORTABILITY AND 18
393393 ACCOUNTABILITY ACT OF 1996 AND THE FEDERAL HEALTH INFORMATION 19
394394 TECHNOLOGY FOR ECONOMIC AND CLINICAL HEALTH ACT, TO THE EXTENT THAT 20
395395 THE PROVIDER OR COVE RED ENTITY MAINTAINS PATIENT INFORMATION IN THE 21
396396 SAME MANNER AS MEDIC AL INFORMATION OR PR OTECTED HEALTH INFOR MATION 22
397397 AS DESCRIBED IN ITEM (1) OF THIS SECTION; OR 23
398398
399399 (3) INFORMATION COLLECTED AS PART OF A CLINICA L TRIAL 24
400400 SUBJECT TO THE FEDERAL POLICY FOR THE PROTECTION OF HUMAN SUBJECTS, 25
401401 IN ACCORDANCE WITH : 26
402402
403403 (I) GOOD CLINICAL PRACTIC E GUIDELINES ISSUED BY THE 27
404404 INTERNATIONAL COUNCIL FOR HARMONISATION OF TECHNICAL REQUIREMENTS 28
405405 FOR PHARMACEUTICALS FOR HUMAN USE; OR 29
406406
407407 (II) HUMAN SUBJECT PROTECT ION REQUIREMENTS OF THE 30
408408 U.S. FOOD AND DRUG ADMINISTRATION . 31
409409
410410 14–4503. 32 10 SENATE BILL 844
411411
412412
413413
414414 IT IS THE INTENT OF T HE GENERAL ASSEMBLY THAT : 1
415415
416416 (1) CHILDREN SHOULD BE AF FORDED PROTECTIONS N OT ONLY BY 2
417417 ONLINE PRODUCTS SPEC IFICALLY DIRECTED AT THEM, BUT BY ALL ONLINE 3
418418 PRODUCTS THEY ARE LI KELY TO ACCESS ; 4
419419
420420 (2) BUSINESSES THAT DEVEL OP AND PROVIDE ONLIN E SERVICES 5
421421 THAT CHILDREN ARE LI KELY TO ACCESS SHOUL D CONSIDER THE BEST INTERESTS 6
422422 OF CHILDREN WHEN DES IGNING, DEVELOPING , AND PROVIDING THOSE ONLINE 7
423423 PRODUCTS; AND 8
424424
425425 (3) IF A CONFLICT ARISES BETWEEN COMMERCIAL I NTERESTS AND 9
426426 THE BEST INTERESTS O F CHILDREN, COMPANIES THAT DEVEL OP ONLINE PRODUCTS 10
427427 LIKELY TO BE ACCESSE D BY CHILDREN SHALL GIVE PRIORITY TO THE PRIVACY, 11
428428 SAFETY, AND WELL–BEING OF CHILDREN OV ER THOSE COMMERCIAL INTERESTS. 12
429429
430430 14–4504. 13
431431
432432 (A) THIS SECTION APPLIE S ONLY TO AN ONLINE PRODUCT THAT IS 14
433433 OFFERED TO THE PUBLI C ON OR AFTER JULY 1, 2024. 15
434434
435435 (B) A BUSINESS THAT PROVID ES AN ONLINE PRODUCT LIKELY TO BE 16
436436 ACCESSED BY CHILDREN SHALL PREPARE A DATA PROTECTION IMPACT 17
437437 ASSESSMENT FOR THE O NLINE PRODUCT . 18
438438
439439 (C) THE DATA PROTECTION IMPACT AS SESSMENT SHALL : 19
440440
441441 (1) IDENTIFY THE PURPOSE OF THE ONLINE PRODUC T; 20
442442
443443 (2) IDENTIFY HOW THE ONLI NE PRODUCT USES CHIL DREN’S 21
444444 PERSONAL INFORMATION ; 22
445445
446446 (3) IDENTIFY THE RISKS OF MATERIAL DETRIMENT T O CHILDREN 23
447447 THAT ARISE FROM THE DATA MANAGEM ENT PRACTICES OF THE BUSINESS; AND 24
448448
449449 (4) ADDRESS, TO THE EXTENT APPLIC ABLE: 25
450450
451451 (I) WHETHER THE DESIGN OF THE ONLINE PRODUCT C OULD 26
452452 HARM CHILDREN , INCLUDING BY EXPOSIN G THEM TO HARMFUL OR POTENTIALLY 27
453453 HARMFUL CONTENT ON T HE ONLINE PRODUCT ; 28
454454 SENATE BILL 844 11
455455
456456
457457 (II) WHETHER THE DESIGN OF THE ON LINE PRODUCT COULD 1
458458 LEAD TO CHILDREN EXP ERIENCING OR BEING T ARGETED BY HARMFUL , OR 2
459459 POTENTIALLY HARMFUL , CONTACTS ON THE ONLI NE PRODUCT; 3
460460
461461 (III) WHETHER THE DESIGN OF THE ONLINE PRODUCT C OULD 4
462462 ALLOW CHILDREN TO WI TNESS, PARTICIPATE IN, OR BE SUBJECT TO HARM FUL OR 5
463463 POTENTIALLY HARMFUL CONDUCT ON THE ONLIN E PRODUCT; 6
464464
465465 (IV) WHETHER THE DESIGN OF THE ONLINE PRODUCT C OULD 7
466466 ALLOW CHILDREN TO BE PARTY TO OR BE EXPLO ITED BY A HARMFUL , OR 8
467467 POTENTIALLY HARMFUL , CONTACT ON THE ONLIN E PRODUCT; 9
468468
469469 (V) WHETHER ALGORITHMS US ED BY THE ONLINE PRO DUCT 10
470470 COULD HARM CHILDREN ; 11
471471
472472 (VI) WHETHER TARGETED ADVE RTISING SYSTEMS USED BY THE 12
473473 ONLINE PRODUCT COULD HARM CHILDREN ; 13
474474
475475 (VII) WHETHER AND HOW THE O NLINE PRODUCT USES S YSTEM 14
476476 DESIGN FEATURES TO I NCREASE, SUSTAIN, OR EXTEND USE BY CHI LDREN, 15
477477 INCLUDING: 16
478478
479479 1. THE AUTOMATIC PLAYING OF MEDIA; 17
480480
481481 2. REWARDS FOR TIME SPEN T; AND 18
482482
483483 3. NOTIFICATIONS; AND 19
484484
485485 (VIII) WHETHER, HOW, AND FOR WHAT PURPOSE THE ONLINE 20
486486 PRODUCT COLLECTS OR PROCESSES SENSITIVE PERSONAL INFORMAT ION OF 21
487487 CHILDREN. 22
488488
489489 (D) (1) A DATA PROTECTION IMPA CT ASSESSMENT PREPAR ED BY A 23
490490 BUSINESS FOR THE PUR POSE OF COMPLIANCE W ITH ANY OTHER LAW CO MPLIES 24
491491 WITH THIS SECTION IF THE ASSESSMENT MEETS THE REQUIREMENTS OF THIS 25
492492 SECTION. 26
493493
494494 (2) A SINGLE DATA PROTECTI ON IMPACT ASSESSMENT MA Y CONTAIN 27
495495 MULTIPLE SIMILAR PRO CESSING OPERATIONS T HAT PRESENT SIMILAR RISKS, ONLY 28
496496 IF EACH RELEVANT ONL INE PRODUCT IS ADDRE SSED. 29
497497 12 SENATE BILL 844
498498
499499
500500 (E) A BUSINESS SHALL COMPL ETE A DATA PROTECTIO N IMPACT 1
501501 ASSESSMENT ON OR BEF ORE JUNE 30, 2024, FOR ANY ONLI NE PRODUCT OFFERED 2
502502 TO THE PUBLIC THAT I S LIKELY TO BE ACCES SED BY CHILDREN BEFO RE THAT DATE. 3
503503
504504 14–4505. 4
505505
506506 (A) A BUSINESS THAT PROVID ES AN ONLINE PRODUCT LIKELY TO BE 5
507507 ACCESSED BY CHILDREN MAY NOT OFFER THE PR ODUCT TO THE PUBLIC BEFORE 6
508508 COMPLETING A DATA PR OTECTION IMPACT ASSESSM ENT. 7
509509
510510 (B) A BUSINESS THAT COMPLE TES A DATA PROTECTIO N IMPACT 8
511511 ASSESSMENT REQUIRED BY THIS SECTION SHAL L: 9
512512
513513 (1) MAINTAIN DOCUMENTATIO N OF THE ASSESSMENT FOR AS LONG 10
514514 AS THE ONLINE PRODUC T IS LIKELY TO BE AC CESSED BY CHILDREN ; 11
515515
516516 (2) REVIEW EACH DATA PROT ECTION IMPACT ASSESS MENT EVERY 2 12
517517 YEARS; 13
518518
519519 (3) DOCUMENT ANY RISK OF MATERIAL DETRIMENT T O CHILDREN 14
520520 THAT ARISES FROM THE DATA MANAGEMENT PRAC TICE OF THE BUSINESS 15
521521 IDENTIFIED IN THE AS SESSMENT; 16
522522
523523 (4) CREATE A PLAN TO MITI GATE OR ELIMINAT E THE RISK BEFORE 17
524524 THE ONLINE PRODUCT I S MADE AVAILABLE TO CHILDREN; 18
525525
526526 (5) (I) ESTIMATE THE AGE OF C HILD USERS WITH A RE ASONABLE 19
527527 LEVEL OF CERTAINTY A PPROPRIATE TO THE RI SKS THAT ARISE FROM THE DATA 20
528528 MANAGEMENT PRACTICES OF THE BUSINESS ; OR 21
529529
530530 (II) APPLY TO ALL CONSUMERS THE PR IVACY AND DATA 22
531531 PROTECTIONS AFFORDED TO CHILDREN; 23
532532
533533 (6) CONFIGURE ALL DEFAULT PRIVACY SETTINGS PRO VIDED TO 24
534534 CHILDREN BY THE ONLI NE PRODUCT TO OFFER A HIGH LEVEL OF PRIV ACY, UNLESS 25
535535 THE BUSINESS CAN DEM ONSTRATE A COMPELLIN G REASON THAT A DIFFERENT 26
536536 SETTING IS IN THE BE ST INTEREST OF CHILD REN; 27
537537
538538 (7) PROVIDE ANY PRIVACY I NFORMATION , TERMS OF SERVICE , 28
539539 POLICIES, AND COMMUNITY STANDA RDS CONCISELY , PROMINENTLY , AND USING 29
540540 CLEAR LANGUAGE SUITE D TO THE AGE OF CHIL DREN LIKELY TO ACCES S THE 30
541541 ONLINE PRODUCT; 31
542542 SENATE BILL 844 13
543543
544544
545545 (8) PROVIDE AN OBVIOUS SI GNAL TO THE CHILD WH EN THE CHILD’S 1
546546 LOCATION IS BEING MO NITORED OR TRACKED , IF THE ONLINE PRODUC T ALLOWS 2
547547 THE CHILD’S PARENT, GUARDIAN, OR ANY OTHER CONSUME R TO TRACK THE CHILD ’S 3
548548 LOCATION; 4
549549
550550 (9) ENFORCE PUBLISHED TER MS, POLICIES, AND COMMUNITY 5
551551 STANDARDS ESTABLISHE D BY THE BUSINESS , INCLUDING PRIVACY PO LICIES, AND 6
552552 THOSE REGARDING CHIL DREN; AND 7
553553
554554 (10) PROVIDE PROMINENT , ACCESSIBLE, AND RESPONSIVE TOOLS TO 8
555555 HELP CHILDREN OR THE IR PARENTS OR GUARDI ANS, IF APPLICABLE, EXERCISE 9
556556 THEIR PRIVACY RIGHTS AND REPORT CONCERNS . 10
557557
558558 14–4506. 11
559559
560560 A BUSINESS THAT PROVID ES AN ONLINE PRODUCT LIKELY TO BE ACCESSE D 12
561561 BY CHILDREN MAY NOT : 13
562562
563563 (1) USE THE PERSONAL INFO RMATION OF A CHILD I N A WAY THAT 14
564564 THE BUSINESS KNOWS , OR HAS REASON TO KNO W, IS MATERIALLY DETRIMENTAL TO 15
565565 THE PHYSICAL HEALTH , MENTAL HEALTH , OR WELL–BEING OF A CHILD; 16
566566
567567 (2) PROFILE A CHILD BY DE FAULT, UNLESS: 17
568568
569569 (I) THE BUSINESS CAN DEMO NSTRATE, TO THE ATTORNEY 18
570570 GENERAL’S SATISFACTION, THAT THE BUSINESS HA S APPROPRIATE SAFEGU ARDS IN 19
571571 PLACE TO PROTECT CHILDREN ; AND 20
572572
573573 (II) 1. PROFILING IS NECESSAR Y TO PROVIDE THE ONL INE 21
574574 PRODUCT REQUEST , AND IS DONE ONLY WIT H RESPECT TO THE ASP ECTS OF THE 22
575575 ONLINE PRODUCT WITH WHICH THE CHILD IS A CTIVELY AND KNOWINGL Y ENGAGED; 23
576576 OR 24
577577
578578 2. THE BUSINESS CAN DEMO NSTRATE A COMPELLING 25
579579 REASON THAT PROFILIN G IS IN THE BEST INTERESTS OF CHILDREN ; 26
580580
581581 (3) COLLECT, SELL, SHARE, OR RETAIN ANY PERSON AL 27
582582 INFORMATION THAT IS UNNECESSARY TO PROVI DE AN ONLINE PRODUCT THAT A 28
583583 CHILD IS ACTIVELY AN D KNOWINGLY ENGAGED WITH, UNLESS THE BUS INESS CAN 29
584584 DEMONSTRATE A COMPEL LING REASON THAT THE COLLECTION, SALE, SHARING, OR 30
585585 RETENTION OF THE PER SONAL INFORMATION IS IN THE BEST INTEREST S OF 31
586586 CHILDREN LIKELY TO A CCESS THE ONLINE PRO DUCT; 32
587587 14 SENATE BILL 844
588588
589589
590590 (4) USE THE PERSONAL INFO RMATION OF A CHILD E ND–USER FOR 1
591591 ANY REASON OTHER THAN TH AT FOR WHICH THE PER SONAL INFORMATION WA S 2
592592 COLLECTED, UNLESS THE BUSINESS CAN DEMONSTRATE A CO MPELLING REASON 3
593593 THAT THE USE OF THE PERSONAL INFORMATION IS IN THE BEST INTER ESTS OF 4
594594 CHILDREN LIKELY TO A CCESS THE ONLINE PRO DUCT; 5
595595
596596 (5) COLLECT, SELL, OR SHARE ANY PRECISE GEOLOCATION 6
597597 INFORMATION OF CHILD REN BY DEFAULT , UNLESS THE COLLECTIO N OF THAT 7
598598 INFORMATION IS STRIC TLY NECESSARY IN ORD ER FOR THE BUSINESS TO PROVIDE 8
599599 THE ONLINE PRODUCT R EQUESTED, AND THEN MAY ONLY DO SO FOR THE LIMITED 9
600600 TIME THAT THE COLLECTION OF PRECISE GEOLOCATI ON INFORMATION IS 10
601601 NECESSARY TO PROVIDE THE ONLINE PRODUCT ; 11
602602
603603 (6) COLLECT ANY PRECISE G EOLOCATION INFORMATI ON OF A CHILD 12
604604 WITHOUT PROVIDING AN OBVIOUS SIGN TO THE CHILD FOR THE DURATI ON THAT 13
605605 THE PRECISE GEOLOCAT ION INFORMATION IS BEING C OLLECTED; 14
606606
607607 (7) USE DARK PATTERNS TO : 15
608608
609609 (I) LEAD OR ENCOURAGE CHI LDREN TO PROVIDE PER SONAL 16
610610 INFORMATION BEYOND W HAT IS REASONABLY EX PECTED TO PROVIDE TH E ONLINE 17
611611 PRODUCT; 18
612612
613613 (II) CIRCUMVENT PRIVACY PR OTECTIONS; OR 19
614614
615615 (III) TAKE ANY A CTION THAT THE BUSIN ESS KNOWS, OR HAS 20
616616 REASON TO KNOW , IS MATERIALLY DETRIM ENTAL TO THE CHILD ’S PHYSICAL 21
617617 HEALTH, MENTAL HEALTH , OR WELL–BEING; OR 22
618618
619619 (8) USE ANY PERSONAL INFO RMATION COLLECTED TO ESTIMATE AGE 23
620620 OR AGE RANGE FOR ANY OTHER PURPOSE , RETAIN THE PERSONAL INFORMATION 24
621621 LONGER THAN NECESSAR Y TO ESTIMATE AGE , OR ATTEMPT AGE ASSUR ANCE IN A 25
622622 WAY THAT IS DISPROPO RTIONATE TO THE RISK S AND DATA PRACTICE OF AN ONLINE 26
623623 PRODUCT. 27
624624
625625 14–4507. 28
626626
627627 (A) WITHIN 3 BUSINESS DAYS AFTER RECEIVING A WRITTEN REQUEST FROM 29
628628 THE ATTORNEY GENERAL, A BUSINESS THAT PROV IDES AN ONLINE PRODU CT 30
629629 LIKELY TO BE ACCESSE D BY CHILDREN SHALL PROVIDE TO THE ATTORNEY 31
630630 GENERAL A LIST OF ALL DATA PROTECTION IMPA CT ASSESSMENTS THE B USINESS 32
631631 HAS COMPLETED UNDER § 14–4504 OF THIS SUBTITLE. 33
632632 SENATE BILL 844 15
633633
634634
635635 (B) WITHIN 5 BUSINESS DAYS AFTER RECEIVING A WRITTEN REQUEST FROM 1
636636 THE ATTORNEY GENERAL, THE BUSINESS SHALL P ROVIDE TO THE ATTORNEY 2
637637 GENERAL ANY DATA PROT ECTION IMPACT ASSESS MENT COMPLETED UNDER § 3
638638 14–4504 OF THIS SUBTITLE. 4
639639
640640 (C) TO THE EXTENT THAT AN Y DISCLOSURE REQUIRE D UNDER SUBSECTION 5
641641 (B) OF THIS SECTION INCL UDES INFORMATION SUB JECT TO ATTORNEY –CLIENT 6
642642 PRIVILEGE OR WORK PR ODUCT PROTECTION , THE DISCLOSURE MAY N OT 7
643643 CONSTITUTE A WAIVER OF THAT PRIVILEGE OR PROTECTION. 8
644644
645645 14–4508. 9
646646
647647 (A) THE ATTORNEY GENERAL MAY FILE A CI VIL ACTION IN A COURT OF 10
648648 COMPETENT JURISDICTI ON AGAINST A BUSINES S THAT VIOLATES THIS SUBTITLE 11
649649 FOR RECOVERY OF A CI VIL PENALTY OR INJUN CTION OR BOTH . 12
650650
651651 (B) A BUSINESS THAT VIOLAT ES THIS SUBTITLE SHA LL BE LIABLE FOR A 13
652652 CIVIL PENALTY OF NOT MORE THAN: 14
653653
654654 (1) $2,500 PER AFFECTED CHILD F OR EACH NEGLIGENT VI OLATION; 15
655655 OR 16
656656
657657 (2) $7,500 PER AFFECTED CHILD F OR EACH INTENTIONAL 17
658658 VIOLATION. 18
659659
660660 (C) IN ADDITION TO A CIVI L PENALTY UNDER SUBS ECTION (B) OF THIS 19
661661 SECTION, A BUSINESS THAT VIOL ATES THIS SUBTITLE I S SUBJECT TO INJUNCT ION 20
662662 AND OTHER APPROPRIAT E RELIEF. 21
663663
664664 (D) CIVIL PENALTIES , FEES, AND EXPENSES RECOVER ED UNDER THIS 22
665665 SECTION SHALL BE DEP OSITED IN THE GENERAL FUND WITH THE INTENT THAT 23
666666 THEY BE USED TO FULL Y OFFSET COSTS INCUR RED BY THE ATTORNEY GENERAL IN 24
667667 CONNECTION WITH THIS SUBTITLE. 25
668668
669669 14–4509. 26
670670
671671 (A) IF A BUSINESS IS IN S UBSTANTIAL COMPLIANC E WITH THE 27
672672 REQUIREMENTS OF §§ 14–4504 THROUGH 14–4506 OF THIS SUBTITLE , THE 28
673673 ATTORNEY GENERAL SHALL PROVIDE WRITTEN NOTICE TO TH E BUSINESS BEFORE 29
674674 FILING AN ACTION UND ER § 14–4508 OF THIS SUBTITLE. 30
675675 16 SENATE BILL 844
676676
677677
678678 (B) NOTICE GIVEN UNDER SU BSECTION (A) OF THIS SECTION SHAL L 1
679679 IDENTIFY THE SPECIFI C PROVISIONS OF THIS SUBTITLE THAT THE ATTORNEY 2
680680 GENERAL ALLEGES HAVE BEEN OR ARE BEING VI OLATED. 3
681681
682682 (C) A BUSINESS MAY NOT BE LIABLE FOR A CIVIL P ENALTY FOR ANY 4
683683 VIOLATION FOR WHICH NOTICE IS GIVEN UNDE R SUBSECTION (A) OF THIS SECTION 5
684684 IF THE BUSINESS: 6
685685
686686 (1) CURES ANY VIOLATION S PECIFIED IN THE ATTORNEY GENERAL’S 7
687687 NOTICE WITHIN 90 DAYS AFTER RECEIVING NOTICE UNDER SUBSECT ION (A) OF THIS 8
688688 SECTION; 9
689689
690690 (2) PROVIDES THE ATTORNEY GENERAL WITH A WRITTE N 10
691691 STATEMENT THAT THE A LLEGED VIOLATIONS HA VE BEEN CURED ; AND 11
692692
693693 (3) TAKES MEASURES TO PRE VENT FUTURE VIOLATIO NS THAT THE 12
694694 ATTORNEY GENERAL AGREES TO BE SUFFICIENT. 13
695695
696696 14–4510. 14
697697
698698 NOTHING IN THIS SUBTI TLE MAY BE INTERPRET ED TO PROV IDE A PRIVATE 15
699699 RIGHT OF ACTION UNDE R THIS SUBTITLE OR A NY OTHER LAW . 16
700700
701701 14–4511. 17
702702
703703 THE SHARING OF PERSON AL INFORMATION WITHI N A JOINT VENTURE OR 18
704704 PARTNERSHIP IS SUBJE CT TO THE REQUIREMEN TS OF THIS SUBTITLE AS THOUGH 19
705705 THE JOINT VENTURE OR PARTNERSHIP DOES NOT EXIST. 20
706706
707707 14–4512. 21
708708
709709 NOTWITHSTANDING ANY O THER LAW , A DATA PROTECTION IM PACT 22
710710 ASSESSMENT IS PROTEC TED AS CONFIDENTIAL AND SHALL BE EXEMPT FROM 23
711711 PUBLIC DISCLOSURE , INCLUDING UNDER THE MARYLAND PUBLIC INFORMATION 24
712712 ACT. 25
713713
714714 14–4513. 26
715715
716716 THIS SUBTITLE MAY BE CITED AS THE MARYLAND AGE–APPROPRIATE 27
717717 DESIGN CODE ACT. 28
718718
719719 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 29
720720 October 1, 2023. 30
721721