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 © 2026 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

Wisconsin Governor Vetoes Age Verification Bill

Gov. Tony Evers on Friday vetoed AB 105, an age verification bill that would have allowed anyone to sue adult content providers for damages over alleged failure to age-verify users in the state, with penalties of up to $10,000 per violation.

FSC Releases Statement on Wisconsin Governor Vetoing AV Bill

The Free Speech Coalition has released a statement on Wisconsin Governor Tony Evers' veto of the state's age verification legislation.

AV Bulletin: West Virginia Enacts AV Law, Ohio 'Innocence Act' Advances

This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Woodhull Survey Reveals Concern Among Sex Educators Over AV Laws' Impact on Access

A national survey of sex educators by the Woodhull Freedom Foundation found that a majority of sex educators and sexual health professionals are concerned that age verification (AV) laws will negatively impact access to information and resources.

Clips4Sale Wins Trademark Infringement Case Against Fraudulent Domain

The World Intellectual Property Organization (WIPO) has ruled in favor of content platform Clips4Sale in a case against a website using a similar domain to impersonate the site.

FSC Talks Age Verification on Capitol Hill

The Free Speech Coalition (FSC) has published a blog post detailing the organization's talks on age verification on Capitol Hill in Washington.

FTC Warns PayPal, Stripe, Visa, Mastercard Against Debanking

Federal Trade Commission Chairman Andrew Ferguson sent letters on Thursday to the CEOs of PayPal, Stripe, Visa and Mastercard, warning them against debanking practices — including denying customers access to services based on lawful business activities perceived as high-risk.

EU Cites 4 Adult Sites for AV Breaches

The European Commission has preliminarily found PornHub, Stripchat, XNXX and XVideos to be in breach of Digital Services Act provisions intended to shield minors from adult content.

Brazil Sets Enforcement Timeline for New AV Rules

Brazil’s National Data Protection Authority (ANPD) on Friday published a timeline outlining planned steps for monitoring and enforcing age verification under the country’s Digital Statute for Children and Adolescents (Digital ECA), which took effect Tuesday.

Show More