Relating to prohibiting the use of opt-out notices by businesses to obtain the consent of consumers to transfer or share their personal identifying information.
Impact
If enacted, HB3539 will amend the Business & Commerce Code and the Finance Code, introducing specific requirements for obtaining consent. This includes defining terms such as 'personal identifying information' and the obligations of businesses in relation to consumer data. The law will enforce that violations render any agreements based on improperly obtained consent void and unenforceable. As such, businesses will need to revise their data privacy practices to comply with these new standards, potentially resulting in costs associated with compliance and changes to operational practices.
Summary
House Bill 3539 aims to enhance consumer protection by prohibiting businesses from using opt-out notices as a means of obtaining consent for the transfer or sharing of personal identifying information. This bill is particularly important in the context of growing concerns over privacy and consumer rights, as it ensures that consumer consent must be explicit and cannot be deemed granted simply through a lack of response to notifications. The legislation establishes a clear framework for how consent must be obtained, thereby closing loopholes that might allow businesses to exploit consumer inaction.
Contention
The key points of contention surrounding HB3539 include the balance between consumer privacy rights and the operational flexibility of businesses. Proponents argue that the requirement for explicit consent protects consumers from manipulation and enhances their control over personal information. Critics, however, may express concerns that heightened restrictions on how businesses can manage consent could lead to increased administrative burdens and slower service delivery for consumers. Furthermore, the bill raises discussions regarding the effectiveness of opt-out mechanisms and whether they sufficiently safeguard consumer interests in a digital marketplace.
Relating to the regulation of the collection, use, processing, and treatment of consumers' personal data by certain business entities; imposing a civil penalty.
Relating to the regulation of the collection, use, processing, and treatment of consumers' personal data by certain business entities; imposing a civil penalty.
Relating to the authority of individuals over the personal identifying information collected, processed, or maintained about the individuals and certain others by certain businesses.
Relating to the protection of personally identifiable student information and the use of covered information by an operator or educational entity; authorizing a civil and administrative penalty.
Relating to certain restrictions on the use of personally identifiable information pertaining to a public school student by an operator or educational entity.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.
Relating to the transfer and statutory novation of insurance policies from a transferring insurer to an assuming insurer through an insurance business transfer plan; authorizing fees.
Relating to the capture and use of an individual's biometric identifiers, specimen, or genetic information by a governmental body or peace officer or by a person for commercial purposes; authorizing civil penalties.