Texas House Bill HB3011

Texas 2011 - 82nd Regular

• Out of House Committee: 4/11/11
• Report Pass: 4/6/11

Caption

Relating to prohibiting the use or retention of zip codes obtained by businesses in verifying the identity of customers; providing a civil penalty.

Summary

House Bill 3011 aims to enhance consumer protection by prohibiting businesses from retaining or utilizing customer zip codes after a transaction is completed. The bill stipulates that any zip code obtained by a business in the process of verifying a customer's identity can neither be stored nor used for any purpose post-purchase. This legislative measure is designed to safeguard consumer information and address growing concerns regarding data privacy in commercial transactions. It applies specifically to zip codes collected after the effective date of the Act, reinforcing the emphasis on protecting consumer data at the point of sale. The bill introduces civil penalties for businesses that violate this regulation. Specifically, businesses found in contravention of this law may face fines ranging from $500 to $1,000 per violation. Enforcement measures are stipulated, allowing the attorney general or district attorneys to pursue action on behalf of the state to recover said penalties. This framework establishes accountability for businesses that disregard these privacy protections and seeks to deter potential misuse of consumer information. Notable points of contention around HB3011 revolve around the balance between consumer protection and business operational flexibility. Advocates of the bill argue that these measures are essential to safeguard consumer data, especially given the increasing prevalence of identity theft and privacy concerns in the digital age. They emphasize that zip codes can be used to deduce personal information and thus should be appropriately protected. Opponents, however, may argue that such restrictions could impose undue burdens on businesses, particularly small and local enterprises that rely on customer data for marketing and identity verification purposes. The potential implications for customer service practices and operational efficiency are crucial discussion points, with some stakeholders concerned about the impacts on businesses' ability to tailor services or offers based on customer demographics. Overall, HB3011 represents a defined shift towards more stringent data privacy regulations in Texas, aligning state laws with consumer rights priorities. Its implementation could set a precedent for further legislative measures aimed at enhancing consumer data security in the future.