United States of America: Introduced New York Child Data Privacy and Protection Act (S9563)

On 22 September 2022, New York State Senator Andrew Gounardes introduced the New York Child Data Privacy and Protection Act (S9563). The purpose of the Bill is to prevent the exploitation of data of children under the age of 18 years old. The Bill first requires data controllers to assess the impact of digital products on children, and the data controllers' assessment must then be submitted to the bureau of internet and technology, which determines whether the product can be offered to the public. In addition, the bureau must create a plan to reduce or eliminate risks before the products are published. Secondly, the Bill bans certain data sets and targeted advertisements, holding that children may not be targeted unless there is prior consent from parents or legal guardians and it is demonstrated that the targeting is in the child's best interest. Thirdly, all parties offering products online must create a feature that warns children, in a way that makes it easy for them to understand, that their data is being collected. In this regard, the bureau has the power to ban anything that wants to increase children's engagement in the use of online products. The bureau must also carry out a public awareness campaign and provide biannual reports. In case of non-compliance, entities face civil penalties of up to USD 20'000 per violation and a maximum of USD 250 million.