MEMO OF OPPOSITION: Legislation That Would Create the NY Privacy Act
Date: June 2, 2021
MEMO OF OPPOSITION
Legislation That Would Create the NY Privacy Act
MACNY- The Manufacturers Association opposes S.6701(Thomas)/A.680A (Rosenthall), which would enact the “New York Privacy Act” to require companies to disclose their methods of de-identifying personal information, place special safeguards around data sharing, and allow consumers to obtain the names of all entities with whom their information is shared. While we understand the intention of the bill and support consumer security, we believe the bill is overly expansive and worry it would create significant costs for New York businesses during challenging fiscal times.
The proposed “NY Privacy Act,” if enacted in its current form, would be even more expansive than California’s Consumer Privacy Act (CCPA), and much more onerous for businesses to comply with. The California Attorney General’s office performed a regulatory assessment for the California Consumer Privacy Act (CCPA) and found that 75 percent of California’s businesses would have to comply, costing businesses $55 billion statewide. The report found these costs:
- $100,000 for companies with 20-100 employees
- $450,000 for companies with 100-500 employees
- $2 million for companies with over 500 employees
This legislation imposes excessive mandates on business and goes far beyond what is necessary to improve the protection of personal data. Furthermore, it includes a private right to action for consumers, with no “right to cure,” which would only encourage more costly litigation in New York.
For these reasons, MACNY opposes S.6701 (Thomas)/A.680A (Rosenthall) with the hope that businesses can have more of a voice in the matter.