SENATE BILL No. 1361

 

 

September 8, 2004, Introduced by Senators BROWN, BISHOP, TOY and BIRKHOLZ and referred to the Committee on Judiciary.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to prohibit certain conduct relating to computer                           

                                                                                

    spyware and the unauthorized collection and use of information              

                                                                                

    from computers; to prescribe the powers and duties of certain               

                                                                                

    state agencies and officers; and to provide remedies.                       

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 1.  This act shall be known and may be cited as the                    

                                                                                

2   "spyware control act".                                                      

                                                                                

3       Sec. 2.  (1) As used in this act:                                           

                                                                                

4       (a) "Context-based triggering mechanism" means a                            

                                                                                

5   software-based trigger or program residing on a computer that               

                                                                                

6   displays an advertisement based on either of the following:                 

                                                                                

7                                                                                (i) The internet website being accessed by the computer.                            

                                                                                

8       (ii) The contents or characteristics of the internet website                 

                                                                                

9   being accessed by the computer.                                             

                                                                                

10      (b) "Department" means the department of labor and economic                 

                                                                                


                                                                                

1   growth.                                                                     

                                                                                

2       (c) "Internet" means that term as defined in 47 USC 230.                    

                                                                                

3       (d) Except as provided in subsection (2), "spyware" means                   

                                                                                

4   software residing on a computer that collects protected                     

                                                                                

5   information and does 1 or both of the following:                            

                                                                                

6                                                                                (i) Sends protected information to a remote computer or                             

                                                                                

7   server.                                                                     

                                                                                

8       (ii) In response to protected information, displays or causes                

                                                                                

9   to be displayed an advertisement to which 1 or more of the                  

                                                                                

10  following apply:                                                            

                                                                                

11      (A) The advertisement does not clearly identify the full                    

                                                                                

12  legal name of the entity responsible for delivering the                     

                                                                                

13  advertisement.                                                              

                                                                                

14      (B) The advertisement uses a federally registered trademark                 

                                                                                

15  as a trigger for the display of the advertisement by a person               

                                                                                

16  other than the trademark owner, an authorized agent or licensee             

                                                                                

17  of the trademark owner, or a recognized internet search engine.             

                                                                                

18      (C) The advertisement uses a triggering mechanism to display                

                                                                                

19  the advertisement based on the internet websites accessed by the            

                                                                                

20  computer.                                                                   

                                                                                

21      (D) The advertisement is displayed using a context-based                    

                                                                                

22  triggering mechanism and the advertisement partially or wholly              

                                                                                

23  covers or obscures paid advertising or other content on a website           

                                                                                

24  in a manner that interferes with the computer user's ability to             

                                                                                

25  view the website.                                                           

                                                                                

26      (e) "Protected information" means 1 or more of the                          

                                                                                

27  following:                                                                  


                                                                                

1                                                                                (i) The internet websites accessed with the computer.                               

                                                                                

2       (ii) The contents or characteristics of the internet websites                

                                                                                

3   accessed with the computer.                                                 

                                                                                

4       (iii) Personal information entered or revealed during the                    

                                                                                

5   operation of the computer, including all of the following:                  

                                                                                

6       (A) An individual's first and last name whether given at                    

                                                                                

7   birth or adoption, assumed, or legally changed.                             

                                                                                

8       (B) The street name, city or town, or zip code of an                        

                                                                                

9   individual's home or physical address.                                      

                                                                                

10      (C) An electronic mail address.                                             

                                                                                

11      (D) A telephone number.                                                     

                                                                                

12      (E) A social security number.                                               

                                                                                

13      (F) Any personal identification number.                                     

                                                                                

14      (G) A credit card number.                                                   

                                                                                

15      (H) An access code associated with a credit card.                           

                                                                                

16      (I) A date of birth, birth certificate number, or place of                  

                                                                                

17  birth.                                                                      

                                                                                

18      (J) A password or access code.                                              

                                                                                

19      (iv) Information submitted by way of forms on an internet                    

                                                                                

20  website.                                                                    

                                                                                

21      (f) "User" means a computer owner or a person who accesses an               

                                                                                

22  internet website.                                                           

                                                                                

23      (2) Notwithstanding subsection (1), the following are not                   

                                                                                

24  spyware:                                                                    

                                                                                

25      (a) Software designed and installed solely to diagnose or                   

                                                                                

26  resolve technical difficulties.                                             

                                                                                

27      (b) Software or data that solely reports to an internet                     


                                                                                

1   website information previously stored by the internet website on            

                                                                                

2   the computer, including 1 or more of the following:                         

                                                                                

3                                                                                (i) Cookies.                                                                        

                                                                                

4       (ii) HTML code.                                                              

                                                                                

5       (iii) Java scripts.                                                          

                                                                                

6       (c) A computer operating system.                                            

                                                                                

7       (d) Software to which both of the following apply:                          

                                                                                

8                                                                                (i) At the time of or after installation of the software but                        

                                                                                

9   before the software does any of the actions described in                    

                                                                                

10  subsection (1)(d), the computer user is provided with all of the            

                                                                                

11  following and the agreement of the user to all of the following             

                                                                                

12  is obtained:                                                                

                                                                                

13      (A) A license agreement for the software that is presented in               

                                                                                

14  full and written in plain English.                                          

                                                                                

15      (B) A notice of the collection of each specific type of                     

                                                                                

16  information to be transmitted as a result of the software                   

                                                                                

17  installation.                                                               

                                                                                

18      (C) A clear and representative full-size example of each type               

                                                                                

19  of advertisement that may be delivered as a result of the                   

                                                                                

20  software installation.                                                      

                                                                                

21      (D) A truthful statement of the frequency with which each                   

                                                                                

22  type of advertisement may be delivered as a result of the                   

                                                                                

23  software installation.                                                      

                                                                                

24      (E) For each type of advertisement delivered as a result of                 

                                                                                

25  the software installation, a clear description of a method by               

                                                                                

26  which a user may distinguish the advertisement by its appearance            

                                                                                

27  from an advertisement generated by other software services.                 


                                                                                

1       (ii) The computer user is provided with a method to quickly                  

                                                                                

2   and easily, using obvious, standard, usual, and ordinary methods,           

                                                                                

3   disable and remove the software from the computer with no other             

                                                                                

4   effect on the nonaffiliated parts of the computer.                          

                                                                                

5       Sec. 3.  (1) A person shall not do any of the following:                    

                                                                                

6       (a) Install spyware on another person's computer.                           

                                                                                

7       (b) Cause spyware to be installed on another person's                       

                                                                                

8   computer.                                                                   

                                                                                

9       (c) Use a context-based triggering mechanism to display an                  

                                                                                

10  advertisement that partially or wholly covers or obscures paid              

                                                                                

11  advertising or other content on an internet website in a way that           

                                                                                

12  interferes with a user's ability to view the internet.                      

                                                                                

13      (2) It is not a defense to an action for a violation of this                

                                                                                

14  section that a user may remove or hide spyware or an                        

                                                                                

15  advertisement.                                                              

                                                                                

16      Sec. 4.  (1) An action against a person for a violation of                  

                                                                                

17  this act may be brought by any of the following who is adversely            

                                                                                

18  affected by the violation:                                                  

                                                                                

19      (a) A user.                                                                 

                                                                                

20      (b) An internet website owner or registrant.                                

                                                                                

21      (c) A trademark or copyright owner.                                         

                                                                                

22      (d) An authorized advertiser on an internet website.                        

                                                                                

23      (2) In an action under subsection (1), a person may obtain 1                

                                                                                

24  or both of the following:                                                   

                                                                                

25      (a) An injunction to prohibit further violations of this                    

                                                                                

26  act.                                                                        

                                                                                

27      (b) The greater of the following:                                           


                                                                                

1                                                                                (i) Actual damages.                                                                 

                                                                                

2       (ii) Ten thousand dollars for each separate violation of this                

                                                                                

3   act.                                                                        

                                                                                

4       (iii) For a knowing violation of this act, 3 times whichever                 

                                                                                

5   amount described in subparagraph (i) or (ii) is larger.                      

                                                                                

6       (3) For purposes of this section, each instance of obtaining                

                                                                                

7   access to user information and each display of an advertisement             

                                                                                

8   is a separate violation of this act.                                        

                                                                                

9       Sec. 5.  (1) This act does not authorize a person to file an                

                                                                                

10  action for a violation of this act against an internet service              

                                                                                

11  provider for the routine transmission of any of the following:              

                                                                                

12      (a) Security information.                                                   

                                                                                

13      (b) Information that contains an advertisement in violation                 

                                                                                

14  of this act.                                                                

                                                                                

15      (2) A person shall not file a class action under this act.                  

                                                                                

16      Sec. 6.  The department shall do all of the following:                      

                                                                                

17      (a) Establish procedures by which a person may report a                     

                                                                                

18  violation of this act to the department by either of the                    

                                                                                

19  following:                                                                  

                                                                                

20                                                                               (i) An internet website maintained by the department.                               

                                                                                

21      (ii) A toll-free telephone number.                                           

                                                                                

22      (b) Review this act on an annual basis and recommend in                     

                                                                                

23  writing to the committees of the senate and house of                        

                                                                                

24  representatives having primary jurisdiction over technology                 

                                                                                

25  issues any amendments to this act that are considered appropriate           

                                                                                

26  by the department based on that review.