California passes online privacy bill.

• Author: Swartz, Nikki
• Position: Up front: news, trends & analysis

The United States' first online privacy bill went into effect July 1 in California. California Assembly Bill No. 68, the Online Privacy and Disclosure Act of 2003, which was signed October 14, 2003, by then-Governor Gray Davis, requires all commercial entities that collect personal information online to clearly post a privacy policy and makes it unlawful for an online entity to violate its posted privacy policy.

Although most legitimate online businesses post privacy policies on their Web sites, not all do. California's bill is meant to protect consumers and make them more comfortable about doing business online while rewarding online businesses that post and follow a fair, effective privacy policy.

"The law isn't clear on what recourse individuals may have, if any, if somebody chooses not to honor their posted privacy commitments," said State Assemblyman Joseph Simitian. "This bill provides for meaningful and accessible enforcement under California law."

California's landmark financial privacy law also took effect July 1, and not all businesses are pleased. According to USA Today, banks said they would renew their fight to overturn restrictions on how they can share customer information. The new law requires financial institutions to get permission from customers before sharing information, such as a customer's bank...