Tough Privacy Bill Advances In Massachusetts

Lawmakers in Massachusetts' Senate unanimously voted on Thursday in favor of a privacy bill that includes a ban on the use of precise location data for ad targeting.

The bill (S. 2608) hasn't yet been passed by the Massachusetts House. If enacted in its current form, the measure would be one of the most restrictive in the country.

Among other provisions, the proposed law would prohibit data controllers from collecting, processing or transferring consumers' "sensitive data" unless doing so was necessary to provide a service or product requested by them. Another provision would prohibit the "sale" of sensitive data.

The measure's definition of "sensitive" data includes information regarding consumers' health, race, religion, citizenship status, biometrics and precise location data -- which the bill generally describes as data that identifies or is linkable to a consumer within a radius of up to 1,750 feet.

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The bill additionally would require companies to allow people to opt out of targeted advertising based on non-sensitive data, and provides that companies must honor opt-out preference signals. The best known opt-out preference signal is the Global Privacy Control, which essentially sends opt-out requests to every site consumers visit.

The legislation broadly describes targeted advertising as ads based on consumers' activity over time and across nonaffiliated websites or apps.

The Association of National Advertisers, American Association of Advertising Agencies, American Advertising Federation, Interactive Advertising Bureau and Digital Advertising Alliance opposed the bill, arguing in a September 23 letter to lawmakers that it "would severely restrict data collection and processing, threatening the vital flow of data that fuels the economy."

"Without the ability to collect and use sensitive data, such as precise geolocation data, for advertising purposes, businesses will have a more difficult time, and face higher costs, reaching individuals with relevant marketing, and consumers will not be alerted to products and services they desire that are near to them," the ad groups write.

"The bill should be updated to allow Massachusetts consumers to exercise choice by providing consent for sensitive data sales instead of imposing a flat ban on the activity," they added.

Privacy advocates including the Electronic Privacy Information Center and Consumer Reports cheered news that the bill had advanced.

“For too long, tech companies have abused their power to exploit our personal data without meaningful accountability," Consumer Reports policy analyst Matt Schwartz stated Thursday. "This bill provides strong, default protections and allows consumers to take real control over their personal information."

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