EXPANSIVE DATA REGULATION
An ordinance introduced by Aldermen Ed Burke, Brian Hopkins, and Brendan Reilly seeks to regulate websites, data breaches, data brokers, cell phone and mobile device sellers, and geolocation information.
It seeks to prohibit anyone who owns a website from using, disclosing, selling or permitting access to customer personal information and includes additional requirements for data breaches and data brokers and mobile phone privacy. “Customer personal information” includes:
- name and billing information;
- government-issued identifiers;
- information that would permit the physical or online contacting of an individual such as physical address, email, phone, or IP address;
- demographic information such as date of birth, age, gender, race, ethnicity, nationality, religion, or sexual orientation;
- financial information;
- health information;
- information pertaining to minors;
- geolocation information;
- information from use of the service including web browsing history, application usage history, content of communications, and origin and destination IP addresses of all traffic;
- device identifiers, such as media access control (MAC) address or Internet mobile equipment identifier (IMEI);
- information concerning a customer or user of the customer’s subscription or account that is collected or made available and is maintained in personal identifiable form.
However, if the customer gives the operator prior opt-in consent. The customer can revoke this option at any time and the operator must provide a clearly available option to do so at all times. The request for consent must disclose the following:
- the types of customer personal information for which the operator is seeking customer approval to use, disclose, sell, or permit access;
- the purposes for which the customer personal information will be used;
- the categories of entities to which the operator intends to disclose, sell, or permit access to the customer personal information.
Interestingly, the operator cannot refuse to serve a customer, or in any way limit services to a customer, who does not provide consent or charge a customer a penalty, or penalize a customer in any way, or offer a customer a discount or another benefit based on the customer’s decision to provide or not provide consent.
An operator can use, disclose, or permit access to customer personal information without customer consent, but only to the extent necessary to achieve the stated purpose, in the following circumstances:
- to provide the operator service from which information is derived, or services necessary to the provision of that service;
- to comply with legal process or other laws, court orders, or administrative orders;
- to initiate, render, bill for, and collect for the operator’s service;
- to protect the rights or property of the operator, or to protect customers of those services and other operators from fraudulent, abusive, or unlawful use of, or subscription to, those services;
- to provide location information concerning the customer in emergency situations.
Data breaches must be reported, without delay, to the Chicago Department of Business Affairs and Consumer Protection and affected Chicago residents.
Data brokers that maintain personal information shall register with the Chicago Department of Business Affairs and Consumer Protection.
In terms of cell phones and mobile devices, the proposed ordinance, requires retailers who sell cell phones or mobile devices to provide notices to customers with a notice that customers can disable such services. The notice must also be prominently displayed at any point of sale where phones or mobile devices are sold or leased. The content of the notice is proscribed in the proposed ordinance.
Finally, the proposed ordinance seeks to regulate the collection, use, storage, or disclosure of geolocation information without affirmative express consent. It does provide some exemptions from affirmative express consent.
In all the above instances, there are various penalties and courses of action available and regulatory authority is granted to the Chicago Department of Business Affairs and Consumer Protection. The ordinance will take effect 180-days after passage.
Please share with us your thoughts on these various proposals as soon as possible.
CELL-PHONE AND MOBILE DEVICE MERCHANTS
Several years ago, the City of Chicago enacted an ordinance regulating food trucks including how far they had to be from an existing restaurant. Mayor Rahm Emanuel has proposed an ordinance to regulate mobile merchants. A few years ago, temporary regulations were put in place. To date, only six licenses for such truck have been issued. This proposal would formalize that licensure and regulation. Regulations include truck size restrictions, when and who can operate, and where they can park and for how long (2 hours). The major difference is unlike the regulations for food trucks there are no provisions restricting how far such trucks have to be from a retailer selling similar merchandise.
OFFICE OF LABOR STANDARDS
Currently, there is no one agency responsible for the enforcement of labor laws within the City of Chicago. Alderman Ameya Pawar has introduced a proposal to combine such enforcement under an Office of Labor Standards. The new office would be empowered to:
1. Promote Chicago’s labor standards through outreach, education, technical assistance and training for employees and employers;
2. Collect and analyze federal, state, and local data on workforce and workplaces and coordinate enforcement;
3. Engage in worker education, safety, and protection;
4. Recommend efforts to achieve workplace equity for women, communities of color, immigrants, refugees, and other vulnerable workers;
5. Otherwise enforce labor laws.
The Office will generate reports regarding complaints, cases, results of cases and enforcement actions, and anything else the Director deems appropriate. To the extent allowed by law, civil penalties and fines shall be allocated to the Office.
WATER COST SHIFT
Alderman Carlos Ramirez-Rosa has introduced a proposal to provide discounted or free water for residents of Chicago called “Water-For All”. The credit will vary by resident and will depend on a formula based on the resident’s income. Like property taxes, these costs will be universalized over the other rate-payers.