Connecticut Governor Signs Law Banning Sale Of Location Data

Connecticut Governor Ned Lamont has signed a privacy law that completely bans the sale of precise geolocation data, his office confirmed Thursday.

With Lamont's move, Connecticut has become the fourth state to prohibit companies from selling data that can pinpoint people's locations within a 1,750-foot radius. The other three states are Virginia, Maryland and Oregon.

The new law (SB4) also restricts "surveillance pricing" as well as the use of facial recognition technology.

In addition, the measure includes provisions similar to California's Delete Act, which aimed to enable consumers to remove their personal information from all data brokers with a single click.

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A separate provision prohibits streaming services from transmitting ads at a higher volume than content.

The major ad industry groups opposed the law, arguing that it's "significantly out-of-step with privacy laws in other states."

The Association of National Advertisers, American Association of Advertising, American Advertising Federation and Digital Advertising Alliance said in a March letter to lawmakers that the ban on the sale of location data would "upend the balanced approach" in a privacy law passed by the state several years ago.

That statute requires companies to obtain consumers' opt-in consent before processing sensitive data, including precise geolocation information.

Privacy watchdog Consumer Reports cheered news of the governor's move.

“This new privacy law will help protect consumers from imminent harm to their safety, autonomy, and finances by making it harder to stalk people, steal their identity, or engage in hyper-targeted marketing for scams," Matt Schwartz, senior policy analyst at Consumer Reports, stated.

The law's restrictions on "surveillance pricing" prohibit businesses from setting a "customized" price based on a consumer's personal data that was collected through "any technology or technological method, system or tool" -- including tools that monitor behavior in a "physical or digital" environment.

The surveillance pricing provisions have some exceptions -- including one that allows businesses to offer discounts to people who register for promotions, or belong to "broadly defined" groups, such as veterans or senior citizens.

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