Legislation To Protect Privacy and Combat Fraud Online

Ahead of the holidays, Governor Kathy Hochul signed a legislative bill package designed to strengthen protections for the personal data of consumers. During the holiday season, companies, offices and organizations statewide, experience higher levels of fraudulent activity involving consumer data and information. With this series of bills newly signed by the Governor, New York continues its commitment to protecting consumer data and safety both online and offline from dangerous activity.

“New Yorkers should never have to worry about their personal information being misused or falling into the wrong hands,” Governor Hochul said. “With this legislative package, we are taking bold action to hold companies accountable, strengthen protections, and give consumers the transparency and security they need and deserve. My administration will continue to lead the fight to protect privacy, combat fraud, and ensure every New Yorker can live and work with confidence in an increasingly digital world.”

Legislation S895B/A6789B requires social media companies to post terms of service for each social media platform owned or operated by the company in a manner reasonably designed to inform all users of the social media platform of the existence and contents of the terms of service; and also requires social media companies to submit to the attorney general certain terms of service reports; and provides remedies for violations.

State Senator Brad Hoylman-Sigal said, “With white supremacy, antisemitism, islamophobia, anti-LGBTQ hatred and anti-AAPI violence all on the rise, social media companies must ensure that their platforms don’t advance disinformation and hate-fueled violence. The current social media landscape makes it too easy for bad actors to promote false claims, hate and dangerous conspiracies, too often leading to violence like January 6 and the rise in antisemitism and islamophobia we have seen in the aftermath of the October 7th terrorist attacks in Israel. I’m proud that the ‘Stop Hiding Hate’ Act, which Assemblymember Lee and I wrote in partnership with the ADL, is now law. This act will require social media companies to report their moderation policies to the NYS Attorney General for public inspection. This will help boost accountability and transparency for social media companies who currently face far too little regulation, and create a safer social media environment for all.”

Assemblymember Grace Lee said, “Social media companies have created an environment where hate and disinformation spread like wildfire. Algorithms that prioritize the most attention-grabbing posts often amplify hateful language, giving it a massive platform. These companies have a responsibility to protect users from this hate, but have failed to do so. The Asian community was deeply affected by this phenomenon during COVID, as hateful conspiracy theories spread online, fueling real-world hate crimes. The “Stop Hiding Hate” Act ensures greater accountability and transparency on social media, requiring companies to clearly outline the steps they are taking to eliminate hate on their platforms. It will provide critical protections for all users online and hold these platforms accountable to the public. I am proud to have worked with Senator Holyman-Sigal and the ADL to make New York only the second state in the nation to pass this important legislation and have it signed into law. I thank Governor Hochul for signing this legislation into law and protecting New Yorkers from online harm.”

Legislation S2376B/A4737B strengthens protections of medical and insurance information from identity theft.

State Senator Roxanne J. Persaud said, “By expanding the definition of identity theft to include medical and health insurance details, we are taking a crucial step forward in safeguarding New Yorkers' personal and medical information. This legislation will help ensure that the privacy and security of every New Yorker’s sensitive health data is better protected, giving people peace of mind knowing that their medical information is just as safe as their financial records.”

Assemblymember Charles D. Lavine said, “This bill will help combat the growing problem of medical identity theft which until now, leaves hundreds of thousands of victims each year with few avenues for assistance. Thank you, Governor Hochul, for continuing to protect New Yorkers.”

Legislation S5615/A2833 requires better security features in devices procured by the government by directing state agencies to require procurement of personal computing goods, services and solutions meet the National Institute of Standards and Technology (NIST) Cybersecurity Framework.

State Senator Kevin Thomas said, “I thank Governor Hochul for signing this important legislation strengthening NYS procurement practices among State agencies to help prevent cyberattacks. Cyber security attacks cost business and government billions each year, we need to take all available measures to combat this growing problem. Utilizing best practices that have been adopted by the U.S. Government is an important step in protecting the data of our residents.”

Assemblymember Steve Otis said, “In August of 2023, Governor Hochul released NYS’s Cybersecurity Framework identifying the ongoing steps state government, business, and individuals need to take to keep pace with the ever-evolving cybersecurity threats. This legislation is consistent with New York’s leadership on cyber-threats by making sure state agency purchasing is consistent with the up-to-date work of the National Institute of Standards and Technology (NIST) standards. Governor Hochul and Senator Thomas have been great partners with the Assembly in understanding and acting on these crucial technology issues.”

Legislation S2659B/A8872A provides that a business must provide notification of a data breach within 30 days of such breach; includes the department of financial services to the list of entities that must be notified of a data breach that affects any New York resident.

State Senator Leroy Comrie said, “This bill marks a significant step forward in protecting New Yorkers’ personal data and ensuring transparency from businesses in the event of a data breach. By requiring notification within 30 days and including the Department of Financial Services as a key entity to be informed, this law strengthens consumer protections and enhances accountability. I commend Assemblyman Sayegh for working with me to get this passed and Governor Hochul for signing it into law. This package of bills will go a long way in safeguarding the privacy of New Yorkers.”

Assemblymember Nader Sayegh said, “I am proud to sponsor this crucial piece of legislation to protect consumers across New York State. Now more than ever consumers have very sensitive digital data stored by others. This law will require any business or individual owning or licensing computerized data containing private information to disclose a data breach within 30 days of its occurrence.”

Legislation S5703B/A1035B prohibits the use of social media websites for debt collection.

State Senator Kevin Parker said, “I want to thank Senate Majority Leader Andrea Stewart-Cousins for her leadership and my Senate colleagues for their support in advancing this critical legislation. I am grateful to Governor Hochul for signing it into law. Debt collectors should not have the ability to invade the personal privacy of New Yorkers through online platforms or social media. With this law, we are protecting New Yorkers from these intrusive and inappropriate tactics, reaffirming our commitment to safeguarding their privacy in the digital age.”

Assemblymember Bichotte Hermelyn said, “Social media has become the Wild West of the Internet for fraudsters and bad actors to steal our money; threatening our safety and causing irreparable damage, but New York is leading the nation in fighting back by enacting sweeping online safety legislation. Debt collectors and bad actors have had the leeway to harass vulnerable New Yorkers on social media, often through threats and manipulation exploiting personal information. Further, even legitimate debt is often being 'collected' from the wrong person on social media, due to the anonymity of these platforms. I thank Governor Hochul for signing the vital bill (S5703B/A1035B) I sponsored with Senator Kevin S. Parker that ensures legitimate debt collection is done through safer, well-established methods, while protecting millions of New Yorkers from potential abuse and harassment.”

Legislation S1759B/A1057C relates to how online dating services handle fraudulent members; and requires certain disclosures and regulations.

State Senator James Skoufis said, “Americans lose billions each year to scams, and dating sites are often used to target those looking to connect. This new law permits online dating platforms to disclose to its users when someone they've been in contact with has been previously banned or when someone they've previously been in contact with has since been banned. Having this fuller picture can help New Yorkers make informed decisions about with whom they want to invest their time. I'm pleased the Legislature recognized the changing social landscape and I thank the Governor for signing this common sense bill.”

Assemblymember Clyde Vanel said, “The romance scam industry is a multi-billion dollar enterprise that preys on vulnerable groups, including the elderly. This legislation is an important step forward in protecting New Yorkers from these heartless schemes by ensuring that online dating services inform New York members when they have interacted with fraudulent accounts. I commend Governor Kathy Hochul for her leadership in signing this bill into law and demonstrating her commitment to safeguarding all New Yorkers from fraudsters.”