Vote Smart's Synopsis:

Vote to pass a bill that authorizes business entities to collect certain cardholder information in online transactions involving an electronic downloadable product.

Highlights:

• Authorizes an entity accepting a credit card in an online transaction involving an electronic downloadable product to require the cardholder to provide the following information if used solely for the detection, investigation, or prevention of criminal activity or for the enforcement of terms of sale (Sec. 3):
• The billing zip code number associated with the credit card;
• The numerical portion of the street address associated with the credit card; and
• Additional personal information, if it is required and used solely for the detection, investigation, or prevention of criminal activity or for the enforcement of terms of sale.

• Requires the entity to dispose of the zip code, street address number, and any additional personal information required of the cardholder after it is no longer needed for the detection, investigation, or prevention of criminal activity or for the enforcement of terms of sale (Sec. 3).

• Prohibits the entity from sharing the cardholder’s personal information with any other entity, unless the following criteria are met (Sec. 3):
• The entity is required to do so by law; or
• The entity is contractually obligated to share the information with another entity to verify the information, complete the transaction, or for the detection, investigation, or prevention of criminal activity or for the enforcement of terms of sale.

• Authorizes an entity accepting a credit card in an online transaction involving an electronic downloadable product to request, but not require, personal information from the cardholder as long as the cardholder opts in to the collection of the information and is “contemporaneously” notified of the following (Sec. 3):
• The purpose of the request;
• The intended use of the information; and
• That providing the information is not required to complete the transaction.

• Requires a cardholder to be provided with an additional opportunity to opt out of the collection of the information before the online transaction is completed (Sec. 3).

• Classifies a violation of this bill as a civil penalty, punishable by the following fines (Sec. 3):
• A fine of up to $250 for the first offense; and
• A fine of up to $1,000 for each subsequent offense.

Full Bill Text