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Financial Services Law Insights and Observations

California Enacts Children's Online Privacy Legislation

Mobile Commerce Privacy/Cyber Risk & Data Security

Privacy, Cyber Risk & Data Security

On September 23, California Governor Jerry Brown signed SB 568, which prohibits an operator of a website, online service, online application, or mobile application from (i) marketing or advertising certain products or services to a minor and (ii) knowingly using, disclosing, compiling, or allowing a third-party to use, disclose, or compile, the personal information of a minor for the purpose of marketing or advertising specified types of products or services. The provisions apply to marketing provided by an advertising service if the operator notifies the service that the website, online service, or application is directed to minors. The bill also requires operators to permit a minor, who is a registered user of the operator’s website, online service, online application, or mobile application, to remove, or to request and obtain removal of, content or information posted on the operator’s website, service, or application by the minor. The law provides exceptions for content or information posted by a third-party, or if (i) any other provision of state or federal law requires the operator or third party to maintain the content or information or (ii) the operator anonymizes the content or information. The law is effective January 1, 2015.