SENATE BILL No. 490

 

 

September 10, 2015, Introduced by Senator SCHUITMAKER and referred to the Committee on Commerce.

 

 

 

     A bill to amend 1988 PA 378, entitled

 

"An act to preserve personal privacy with respect to the purchase,

rental, or borrowing of certain materials; and to provide penalties

and remedies for violation of this act,"

 

by amending sections 1, 3, 4, and 5 (MCL 445.1711, 445.1713,

 

445.1714, and 445.1715), section 5 as added by 1989 PA 206.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. As used in this act:

 

     (a) "Customer" means a person an individual who purchases,

 

rents, or borrows a book, or other written material, or a sound

 

recording, or a video recording.

 

     (b) "Employee" means a person an individual who works for an

 

employer in exchange for wages or other remuneration.

 

     (c) "Employer" means a person who that has 1 or more

 

employees.


     Sec. 3. A record or information described in section 2 may be

 

disclosed only in 1 or more of the following circumstances:

 

     (a) With the written permission of the customer.

 

     (b) Pursuant to a court order.

 

     (c) To the extent reasonably necessary to collect payment for

 

the materials or the rental of the materials, if the customer has

 

received written notice that the payment is due and has failed to

 

pay or arrange for payment within a reasonable time after notice.

 

     (d) To any person if the disclosure is incident to the

 

ordinary course of business of the person that is disclosing the

 

information.

 

     (e) (d) If the disclosure is for the exclusive purpose of

 

marketing goods and services directly to the consumer. All of the

 

following apply for purposes of this subparagraph:

 

     (i) The person that is disclosing the information shall inform

 

the customer by written notice that the customer may remove his or

 

her name at any time by in the manner described in subparagraph

 

(ii). Any of the following methods of notice satisfy the written

 

notice requirements of this subparagraph:

 

     (A) Written notice included in or with any materials sold,

 

rented, or lent to the customer under section 2.

 

     (B) Written notice provided to the customer at the time he or

 

she orders any of the materials described in section 2 or otherwise

 

provided to the customer in connection with the transaction between

 

the person and customer for the sale, rental, or loan of the

 

materials to the customer.

 

     (C) Notice that is included in an online privacy policy that

 


is posted on the Internet and maintained by the person that is

 

disclosing the information and is available to the general public.

 

     (ii) A customer may provide written notice to the a person

 

that is disclosing the information under this subdivision that the

 

customer does not want his or her name disclosed. Beginning 30 days

 

after the person receives the written notice, the person shall not

 

disclose the customer's name to any other person under this

 

subdivision.

 

     (f) (e) Pursuant to a search warrant issued by a state or

 

federal court or a grand jury subpoena.

 

     Sec. 4. A person who that violates this act is guilty of a

 

misdemeanor.

 

     Sec. 5. (1) Regardless of any criminal prosecution for a the

 

violation, of this act, a person who that violates this act shall

 

may be liable in a civil action for damages to the customer

 

identified in a record or other information that is disclosed in

 

violation of this act. The a customer under subsection (2).

 

     (2) A customer described in subsection (1) who suffers actual

 

injury as a result of a violation of this act may bring a civil

 

action against the person that violated this act and may recover

 

both of the following:

 

     (a) Actual One of the following, whichever is greater:

 

     (i) The customer's actual damages, including damages for

 

emotional distress. , or $5,000.00, whichever is greater.

 

     (ii) If the violation is the disclosure of the customer's

 

information after he or she provided written notice to the person

 

under section 3(e)(ii), $5,000.00.

 


     (b) Costs and reasonable attorney fees.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.

 

     Enacting section 2. This amendatory act is curative and

 

intended to clarify that the prohibitions on disclosing information

 

contained in 1988 PA 378, MCL 445.1711 to 445.1715, do not prohibit

 

disclosing information if it is incident to the ordinary course of

 

business of the person disclosing the information, including

 

marketing goods and services to the consumer, when written notice

 

is provided.