Pending Bill Would Punish Companies That Use Consumer Information to Target Ads

NEW YORK — New legislation is picking up steam in New York that would make it harder for Internet giants like Google, Microsoft and Yahoo to use information collected about web surfers as a basis for targeted advertising.

New York state assmeblyman Richard L. Brodsky drafted the new bill, which would make it a punishable-by-fine crime for certain online companies to use information about web surfers without their consent.

“Should these companies be able to sell or use what’s essentially private data without permission?" asked Brodsky, a Democrat. "The easy answer is absolutely not.”

Adult industry lawyer Ira Rothken told XBIZ that even though the law appears to target the big kids on the virtual block – Microsoft, Google and Yahoo – it might affect the adult industry, too.

"It might have an impact to the extent that there are any adult affiliate companies or ad networks that track users' clicks to build an advertising profile," he said, though he cautioned that as far as he knows, the language of the New York bill hasn't been settled yet.

That exact language of the law might raise other Constitutional concerns as well, Rothken said. He explained that because the virtual space of the Internet ignores state and national boundaries, the New York law, if passed, might force Internet companies nationwide to abide by it out of caution.

"And that might be unconstitutional," Rothken said, adding that litigation over the matter may involve the Dormant Commerce Clause, the legal concept that tacitly grants Congress the authority to prevent states from passing laws that affect interstate commerce.

The pending legislation in New York also raises questions about how Internet companies can and should balance the need for users' privacy and the need for efficient advertising.

Earlier this year, a judge in Australia mounted an argument that runs contrary to Assemblyman Brodsky's proposed law. While considering a law that would force online companies to get surfers' consent before using their information, High Court Justice Michael Kirby said that the march of technology was unstoppable.

"It was a good moral and ethical principle to keep people's control over the usage that was made of the information ... and then along came Google and Yahoo," Kirby said. "And when the new technology came, there was a massive capacity to range through vast amounts of information. The notion that you could control this was a conundrum."

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Michigan Legislators Propose Online Porn Ban

Michigan lawmakers have introduced a bill that would make it illegal to distribute pornography via the internet in the state.

Florida AG Sues Aylo, Segpay Over State AV Law

Florida Attorney General James Uthmeier filed lawsuits against Aylo and Segpay today with the 12th Judicial Circuit Court of Florida for noncompliance with HB3, the state's age verification law.

Colombian Court Sides with Esperanza Goméz in Meta Account Deactivation Battle

On Friday, Colombia’s Constitutional Court ruled in favor of adult performer Esperanza Gómez in her legal battle against Meta over repeated suspensions of her Instagram account.

Missouri AG Announces Age Verification Rule to Take Effect Nov. 30

Newly appointed Missouri Attorney General Catherine Hanaway announced Friday that the state's recently approved age verification regulation for adult websites will go into effect on Nov. 30.

Aylo, Woodhull Freedom Foundation to Host 'Online Censorship' Event

Aylo and Woodhull Freedom Foundation will co-host a virtual panel addressing online censorship on Sept. 30.

Judge Awards Plaintiffs Over $400K in Attorneys Fees in Derek Hay Civil Case

California Superior Court Judge Gail Killefer has awarded former clients of LA Direct Models over $400,000 in attorneys fees and court costs, to be paid by agency founder Derek Hay.

Former Backpage CEO Carl Ferrer Sentenced to 3 Years Probation, $40,000 Fine

Former Backpage.com CEO Carl Ferrer was sentenced in federal court today to three years' probation and a $40,000 restitution fine for a conspiracy conviction related to money laundering through the defunct website.

Playboy Wins $81 Million Judgment in Chinese Licensing Arbitration

Playboy Inc. was awarded $81 million in damages on Monday by the Hong Kong International Arbitration Centre, in a licensing dispute with former partner New Handong Investment (Guangdong) Co. Ltd.

GirlsDoPorn Owner Michael Pratt Sentenced to 27 Years

Michael Pratt, former owner of the website GirlsDoPorn, has been sentenced to 27 years in federal prison.

Aylo Fined $5 Million as FTC, Utah Settle Safety Practices Complaint

The Federal Trade Commission and the state of Utah on Wednesday settled a complaint against Aylo, requiring the company to pay a $5 million penalty and implement measures to prevent illegal content from appearing on its sites.

Show More