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7/1/2024
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Shanley, DiPalma legislation to provide data transparency and protect online privacy becomes law
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STATE HOUSE — Legislation introduced by Rep. Evan P. Shanley and Sen. Louis P. DiPalma that would establish data transparency guidelines and strengthen online privacy has become law.
The Rhode Island Data Transparency and Privacy Protection Act (2024-H 7787A, 2024-S 2500) requires online service providers and commercial websites that collect, store and sell personally identifiable information to identify all categories of information collected, when the controller may disclose such information, when customers may exercise their rights, the purpose for processing the personal data, categories of personal data shared with a third party and means to contact the controller.
“Everybody has a fundamental right to privacy,” said Representative Shanley (D-Dist. 24, Warwick, East Greenwich). “Whenever you enter your information on a website, you should know if the administrators of that site are taking that information and selling it. If they are, then they should say so by posting it in an obvious and visible place on their home page, and give you an opportunity to opt out. It is imperative that consumers understand how their information — especially information relating to their children — is shared by businesses.”
Representative Shanley has been in the vanguard of the emerging field of online privacy legislation, spearheading a special legislative commission to study privacy protection on the Internet.
“It is the Wild West on the internet in regards to the data they have on all of us that people can do just about anything with,” said Senator DiPalma (D-Dist. 12, Middletown, Little Compton, Newport, Tiverton), who chairs the Senate Finance Committee. “It allows Rhode Islanders to opt in to what data is collected. This protects our privacy when we’re all at risk, and it’s a long time coming.”
Entities that control or process personal data of not less than 35,000 customers or at least 10,000 customers and derive more than 20% of gross revenue from the sale of personal data are now subject to additional disclosure requirements and must allow customers the right to opt out of the collection of personally identifiable information.
While the law does not prohibit the collection or sale of personally identifiable information, it does provide penalties for any intentional disclosure of personal information in violation of the act. Such violations are now punishable by a fine of not less than $100 nor more than $500 per disclosure. Sole enforcement of these provisions are vested in the office of the Attorney General.
“As the Internet alters our lives, it’s important for the law to keep up with changing trends and policies in the online world,” said Representative Shanley. “Businesses can now collect information and disclose it in ways we couldn’t have comprehended 30 years ago. Some websites have tracking tools that record information such as age, gender, race, income, health concerns, religion, and recent purchases. They can use that information to set up an individual profile about you and sell it to third-party marketers and data brokers.”
The measure takes effect on Jan. 1, 2025.
For more information, contact:
Daniel Trafford, Publicist
State House Room 20
Providence, RI 02903
(401)222-1922
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