Illinois General Assembly - Full Text of HB5581
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Full Text of HB5581  103rd General Assembly

HB5581 103RD GENERAL ASSEMBLY

 


 
103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5581

 

Introduced 2/9/2024, by Rep. Hoan Huynh

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Illinois Privacy Rights Act. Defines terms such as "biometric data", "consumer", "controller", "deidentified data", and "processor". Creates a consumer protection of privacy in which, with some exceptions, provides an individual with the right to: (i) confirm whether or not a controller is processing the consumer's personal data and access such personal data; (ii) correct inaccuracies in the consumer's personal data; (iii) delete personal data provided by or obtained about the consumer; (iv) obtain a copy of the consumer's personal data processed by the controller in a portable and, to the extent technically feasible, readily usable format; and, (v) opt out of the processing of the personal data for purposes of targeted advertising, the sale of personal data, or profiling in furtherance of solely automated decisions that produce legal or similarly significant effects concerning the consumer. Defines a consumer as a resident of this State excluding an individual acting in commercial or employment context. Provides that this Act applies to persons that conduct business in this State or persons that produce products or services that are targeted to residents of this State that during a 1-year period: (i) controlled or processed the personal data of not less than 35,000 unique consumers, excluding personal data controlled or processed solely for the purpose of completing a payment transaction; or (ii) controlled or processed the personal data of not less than 10,000 unique consumers and derived more than 25% of their gross revenue from the sale of personal data. Provides that the Attorney General has the exclusive authority under this Act to enforce violations of it. Makes a violation of this Act an unfair method of competition or any unfair or deceptive act or practice under the Consumer Fraud and Deceptive Business Practices Act. Prohibits a private cause of action under this Act. Effective January 1, 2025.


LRB103 38323 JRC 68458 b

 

 

A BILL FOR

 

HB5581LRB103 38323 JRC 68458 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Illinois Privacy Rights Act.
 
6    Section 5. Definitions. As used in this Act:
7    (a) "Affiliate" means a legal entity that shares common
8branding with another legal entity, or is controlled by, or is
9under common control with, another legal entity.
10    (b) "Control" or "controlled" means ownership of, or the
11power to vote, more than 50 percent of the outstanding shares
12of any class of voting security of a company; control in any
13manner over the election of a majority of the directors or of
14individuals exercising similar functions; or the power to
15exercise controlling influence over the management of a
16company.
17    (c) "Authenticate" means to use reasonable means to
18determine that a request to exercise any of the rights
19afforded under paragraphs (1) through (4) of subsection (a) of
20Section 20 is being made by, or on behalf of, the consumer who
21is entitled to exercise such consumer rights with respect to
22the personal data at issue.
23    (d) "Biometric data" means data generated by automatic

 

 

HB5581- 2 -LRB103 38323 JRC 68458 b

1measurements of an individual's biological characteristics,
2such as a fingerprint, a voiceprint, eye retinas, irises or
3other unique biological patterns, or characteristics that are
4used to identify a specific individual. "Biometric data" does
5not include a digital or physical photograph, an audio or
6video recording, or any data generated from a digital or
7physical photograph, or an audio or video recording, unless
8such data is generated to identify a specific individual.
9    (e) "Business associate" has the same meaning as provided
10in the Health Insurance Portability and Accountability Act
11(HIPAA).
12    (f) "Child" has the same meaning as provided in the
13Children's Online Privacy Protection Act (COPPA).
14    (g) "Consent" means a clear affirmative act signifying a
15consumer's freely given, specific, informed and unambiguous
16agreement to allow the processing of personal data relating to
17the consumer. "Consent" may include a written statement,
18including by electronic means, or any other unambiguous
19affirmative action. "Consent" does not include acceptance of a
20general or broad terms of use or similar document that
21contains descriptions of personal data processing along with
22other, unrelated information; hovering over, muting, pausing
23or closing a given piece of content; or an agreement obtained
24through the use of deceptive design patterns (also known as
25"dark patterns").
26    (h) "Consumer" means an individual who is a resident of

 

 

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1this State. "Consumer" does not include an individual acting
2in a commercial or employment context or as an employee,
3owner, director, officer or contractor of a company,
4partnership, sole proprietorship, nonprofit or government
5agency whose communications or transactions with the
6controller occur solely within the context of that
7individual's role with the company, partnership, sole
8proprietorship, nonprofit or government agency.
9    (i) "Controller" means an individual who, or legal entity
10that, alone or jointly with others determines the purpose and
11means of processing personal data.
12    (j) "COPPA" means the Children's Online Privacy Protection
13Act of 1998, 15 U.S.C. 6501 et seq., and any amendments,
14regulations, rules, guidance and exemptions adopted under that
15act.
16    (k) "Covered entity" has the same meaning as provided in
17HIPAA.
18    (l) "Dark pattern" or "deceptive design pattern" means a
19user interface designed or manipulated with the substantial
20effect of subverting or impairing user autonomy,
21decision-making or choice, and includes, but is not limited
22to, any practice the Federal Trade Commission refers to as a
23"dark pattern".
24    (m) "Decisions that produce legal or similarly significant
25effects concerning the consumer" means decisions made by the
26controller that result in the provision or denial by the

 

 

HB5581- 4 -LRB103 38323 JRC 68458 b

1controller of financial or lending services, housing,
2insurance, education enrollment or opportunity, criminal
3justice, employment opportunities, health care services or
4access to essential goods or services.
5    (n) "Deidentified data" means data that cannot reasonably
6be used to infer information about, or otherwise be linked to,
7an identified or identifiable individual, or a device linked
8to such individual, if the controller that possesses such data
9takes reasonable measures to ensure that such data cannot be
10associated with an individual; publicly commits to process
11such data only in a deidentified way and not attempt to
12reidentify such data; and contractually obligates any
13recipients of such data to satisfy the criteria under this
14paragraph.
15    (o) "HIPAA" means the Health Insurance Portability and
16Accountability Act of 1996, 42 USC 1320d et seq., as amended.
17    (p) "Identified or identifiable individual" means an
18individual who can be readily identified, directly or
19indirectly.
20    (q) "Institution of higher education" means any individual
21who, or school, board, association, limited liability company
22or corporation that, is licensed or accredited to offer one or
23more programs of higher learning leading to one or more
24degrees.
25    (r) "Nonprofit organization" means any organization that
26is exempt from taxation under Section 501(c)(3), 501(c)(4),

 

 

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1501(c)(6), or 501(c)(12) of the Internal Revenue Code of 1986,
2or any subsequent corresponding internal revenue code of the
3United States, as amended.
4    (s) "Personal data" means any information that is linked
5or reasonably linkable to an identified or identifiable
6individual. "Personal data" does not include deidentified data
7or publicly available information.
8    (t) "Precise geolocation data" means information derived
9from technology, including, but not limited to, global
10positioning system level latitude and longitude coordinates or
11other mechanisms, that directly identifies the specific
12location of an individual with precision and accuracy within a
13radius of 1,750 feet. "Precise geolocation data" does not
14include the content of communications or any data generated by
15or connected to advanced utility metering infrastructure
16systems or equipment for use by a utility.
17    (u) "Process" or "processing" means any operation or set
18of operations performed, whether by manual or automated means,
19on personal data or on sets of personal data, such as the
20collection, use, storage, disclosure, analysis, deletion or
21modification of personal data.
22    (v) "Processor" means an individual who, or legal entity
23that, processes personal data on behalf of a controller.
24    (w) "Profiling" means any form of automated processing
25performed on personal data to evaluate, analyze, or predict
26personal aspects related to an identified or identifiable

 

 

HB5581- 6 -LRB103 38323 JRC 68458 b

1individual's economic situation, health, personal preferences,
2interests, reliability, behavior, location, or movements.
3    (x) "Protected health information" has the same meaning as
4provided in HIPAA.
5    (y) "Pseudonymous data" means personal data that cannot be
6attributed to a specific individual without the use of
7additional information, provided such additional information
8is kept separately and is subject to appropriate technical and
9organizational measures to ensure that the personal data is
10not attributed to an identified or identifiable individual.
11    (z) "Publicly available information" means information
12that is lawfully made available through federal, State,
13municipal government records, or widely distributed media, and
14a controller has a reasonable basis to believe a consumer has
15lawfully made available to the general public.
16    (aa) "Sale of personal data" means the exchange of
17personal data for monetary or other valuable consideration by
18the controller to a third party. "Sale of personal data" does
19not include:
20        (1) The disclosure of personal data to a processor
21    that processes the personal data on behalf of the
22    controller;
23        (2) The disclosure of personal data to a third party
24    for purposes of providing a product or service requested
25    by the consumer;
26        (3) The disclosure or transfer of personal data to an

 

 

HB5581- 7 -LRB103 38323 JRC 68458 b

1    affiliate of the controller;
2        (4) The disclosure of personal data where the consumer
3    directs the controller to disclose the personal data or
4    intentionally uses the controller to interact with a third
5    party;
6        (5) The disclosure of personal data that the consumer
7    intentionally made available to the general public via a
8    channel of mass media, and did not restrict to a specific
9    audience; or
10        (6) The disclosure or transfer of personal data to a
11    third party as an asset that is part of a merger,
12    acquisition, bankruptcy or other transaction, or a
13    proposed merger, acquisition, bankruptcy or other
14    transaction, in which the third party assumes control of
15    all or part of the controller's assets.
16    (bb) "Sensitive data" means personal data that includes
17data revealing racial or ethnic origin, religious beliefs,
18mental or physical health condition or diagnosis, sex life,
19sexual orientation or citizenship or immigration status; the
20processing of genetic or biometric data for the purpose of
21uniquely identifying an individual; personal data collected
22from a known child; or precise geolocation data.
23    (cc) "Targeted advertising" means displaying
24advertisements to a consumer where the advertisement is
25selected based on personal data obtained or inferred from that
26consumer's activities over time and across nonaffiliated

 

 

HB5581- 8 -LRB103 38323 JRC 68458 b

1Internet websites or online applications to predict such
2consumer's preferences or interests. "Targeted advertising"
3does not include:
4        (1) Advertisements based on activities within a
5    controller's own Internet websites or online applications;
6        (2) Advertisements based on the context of a
7    consumer's current search query, visit to an Internet
8    website, or online application;
9        (3) Advertisements directed to a consumer in response
10    to the consumer's request for information or feedback; or
11        (4) Processing personal data solely to measure or
12    report advertising frequency, performance, or reach.
13    (dd) "Third party" means an individual or legal entity,
14such as a public authority, agency or body, other than the
15consumer, controller or processor or an affiliate of the
16processor or the controller.
 
17    Section 10. Application. This Act applies to persons that
18conduct business in this State or persons that produce
19products or services that are targeted to residents of this
20State that during a one-year period:
21        (a) Controlled or processed the personal data of not
22    less than 35,000 unique consumers, excluding personal data
23    controlled or processed solely for the purpose of
24    completing a payment transaction; or
25        (b) Controlled or processed the personal data of not

 

 

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1    less than 10,000 unique consumers and derived more than 25
2    percent of their gross revenue from the sale of personal
3    data.
 
4    Section 15. Exclusions.
5    (a) This Act does not apply to any:
6        (1) Body, authority, board, bureau, commission,
7    district or agency of this State or any political
8    subdivision of this State;
9        (2) Nonprofit organization;
10        (3) Institution of higher education;
11        (4) National securities association that is registered
12    under 15 U.S.C. 78o-3 of the Security Exchange Act of
13    1934, as amended;
14        (5) Financial institution or data subject to Title V
15    of the Gramm-Leach-Bliley Act, 15 U.S.C. 6801 et seq.; or
16        (6) A covered entity or business associate, as defined
17    in 45 CFR 160.103(b).
18    (b) The following information and data shall be exempt
19from this Act:
20        (1) Protected health information under HIPAA;
21        (2) Patient-identifying information for purposes of 42
22    U.S.C. 290dd-2;
23        (3) Identifiable private information for purposes of
24    the federal policy for the protection of human subjects
25    under 45 CFR 46;

 

 

HB5581- 10 -LRB103 38323 JRC 68458 b

1        (4) Identifiable private information that is otherwise
2    information collected as part of human subjects research
3    pursuant to the good clinical practice guidelines issued
4    by the International Council for Harmonization of
5    Technical Requirements for Pharmaceuticals for Human Use;
6        (5) The protection of human subjects under 21 CFR
7    Parts 6, 50, and 56, or personal data used or shared in
8    research, as defined in 45 CFR 164.501, that is conducted
9    in accordance with the standards set forth in this Act, or
10    other research conducted in accordance with applicable
11    law;
12        (6) Information and documents created for purposes of
13    the Health Care Quality Improvement Act of 1986, 42 U.S.C.
14    11101 et seq.;
15        (7) Patient safety work product for purposes of the
16    Patient Safety and Quality Improvement Act, 42 U.S.C.
17    299b-21 et seq., as amended;
18        (8) Information derived from any of the health care
19    related information listed in this subsection that is
20    deidentified in accordance with the requirements for
21    de-identification pursuant to HIPAA;
22        (9) Information originating from and intermingled to
23    be indistinguishable with, or information treated in the
24    same manner as, information exempt under this Section that
25    is maintained by a covered entity or business associate,
26    program or qualified service organization, as specified in

 

 

HB5581- 11 -LRB103 38323 JRC 68458 b

1    42 U.S.C. 290dd-2, as amended;
2        (10) Information used for public health activities and
3    purposes as authorized by HIPAA, community health
4    activities and population health activities;
5        (11) The collection, maintenance, disclosure, sale,
6    communication or use of any personal information bearing
7    on a consumer's credit worthiness, credit standing, credit
8    capacity, character, general reputation, personal
9    characteristics or mode of living by a consumer reporting
10    agency, furnisher or user that provides information for
11    use in a consumer report, and by a user of a consumer
12    report, but only to the extent that such activity is
13    regulated by and authorized under the Fair Credit
14    Reporting Act, 15 U.S.C. 1681 et seq.;
15        (12) Personal data collected, processed, sold or
16    disclosed in compliance with the Driver's Privacy
17    Protection Act of 1994, 18 U.S.C. 2721 et seq., as
18    amended;
19        (13) Personal data regulated by the Family Educational
20    Rights and Privacy Act, 20 U.S.C. 1232g et seq., as
21    amended;
22        (14) Personal data collected, processed, sold or
23    disclosed in compliance with the Farm Credit Act, 12
24    U.S.C. 2001 et seq., as amended;
25        (15) Data processed or maintained in the course of an
26    individual applying to, employed by or acting as an agent

 

 

HB5581- 12 -LRB103 38323 JRC 68458 b

1    or independent contractor of a controller, processor or
2    third party, to the extent that the data is collected and
3    used within the context of that role; as the emergency
4    contact information of an individual under this Act used
5    for emergency contact purposes; or that is necessary to
6    retain to administer benefits for another individual
7    relating to the individual who is the subject of the
8    information under HIPAA and used for the purposes of
9    administering such benefits;
10        (16) Personal data collected, processed, sold or
11    disclosed in relation to price, route or service, as such
12    terms are used in the Airline Deregulation Act, 49 U.S.C.
13    40101 et seq., as amended, by an air carrier subject to the
14    act, to the extent this Act is preempted by the Airline
15    Deregulation Act, 49 U.S.C. 41713, as amended;
16        (17) Personal information maintained or used for
17    purposes of compliance with the regulation of listed
18    chemicals under the federal Controlled Substances Act, 21
19    U.S.C. 830; and
20        (18) Information included in a limited data set as
21    described at 45 CFR 164.514(e), to the extent that the
22    information is used, disclosed, and maintained in the
23    manner specified at 45 CFR 164.514(e).
24    (c) Controllers and processors that comply with the
25verifiable parental consent requirements of COPPA shall be
26compliant with any obligation to obtain parental consent

 

 

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1pursuant to this Act.
 
2    Section 20. Consumer expectation of privacy.
3    (a) A consumer has the right to:
4        (1) Confirm whether or not a controller is processing
5    the consumer's personal data and access such personal
6    data, unless such confirmation or access would require the
7    controller to reveal a trade secret;
8        (2) Correct inaccuracies in the consumer's personal
9    data, taking into account the nature of the personal data
10    and the purposes of the processing of the consumer's
11    personal data;
12        (3) Delete personal data provided by, or obtained
13    about, the consumer;
14        (4) Obtain a copy of the consumer's personal data
15    processed by the controller, in a portable and, to the
16    extent technically feasible, readily usable format that
17    allows the consumer to transmit the data to another
18    controller without hindrance, where the processing is
19    carried out by automated means, provided such controller
20    shall not be required to reveal any trade secret; and
21        (5) Opt out of the processing of the personal data for
22    purposes of targeted advertising, the sale of personal
23    data, except as provided in Section 30, or profiling in
24    furtherance of solely automated decisions that produce
25    legal or similarly significant effects concerning the

 

 

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1    consumer.
2    (b) A consumer may exercise rights under this Section by a
3secure and reliable means established by the Secretary of
4State and described to the consumer in the controller's
5privacy notice. A consumer may designate an authorized agent
6in accordance with Section 25 to exercise the rights of such
7consumer to opt out of the processing of such consumer's
8personal data for purposes of paragraph (5) of subsection (a)
9on behalf of the consumer. In the case of processing personal
10data of a known child, the parent or legal guardian may
11exercise such consumer rights on the child's behalf. In the
12case of processing personal data concerning a consumer subject
13to a guardianship, conservatorship, or other protective
14arrangement, the guardian or the conservator of the consumer
15may exercise such rights on the consumer's behalf.
16    (c) Except as otherwise provided in this Act, a controller
17shall comply with a request by a consumer to exercise the
18consumer rights authorized pursuant to this Act as follows:
19        (1) A controller shall respond to the consumer without
20    undue delay, but not later than 45 days after receipt of
21    the request. The controller may extend the response period
22    by 45 additional days when reasonably necessary,
23    considering the complexity and number of the consumer's
24    requests, provided the controller informs the consumer of
25    any such extension within the initial 45-day response
26    period and of the reason for the extension.

 

 

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1        (2) If a controller declines to take action regarding
2    the consumer's request, the controller shall inform the
3    consumer without undue delay, but not later than 45 days
4    after receipt of the request, of the justification for
5    declining to take action and instructions for how to
6    appeal the decision.
7        (3) Information provided in response to a consumer
8    request shall be provided by a controller, free of charge,
9    once per consumer during any 12-month period. If requests
10    from a consumer are manifestly unfounded, excessive or
11    repetitive, the controller may charge the consumer a
12    reasonable fee to cover the administrative costs of
13    complying with the request or decline to act on the
14    request. The controller bears the burden of demonstrating
15    the manifestly unfounded, excessive or repetitive nature
16    of the request.
17        (4) If a controller is unable to authenticate a
18    request to exercise any of the rights afforded under
19    paragraphs (1) through (4) of subsection (a) using
20    commercially reasonable efforts, the controller shall not
21    be required to comply with a request to initiate an action
22    pursuant to this Section and shall provide notice to the
23    consumer that the controller is unable to authenticate the
24    request to exercise such right or rights until such
25    consumer provides additional information reasonably
26    necessary to authenticate such consumer and such

 

 

HB5581- 16 -LRB103 38323 JRC 68458 b

1    consumer's request to exercise such right or rights. A
2    controller shall not be required to authenticate an
3    opt-out request, but a controller may deny an opt-out
4    request if the controller has a good faith, reasonable and
5    documented belief that such request is fraudulent. If a
6    controller denies an opt-out request because the
7    controller believes such request is fraudulent, the
8    controller shall send a notice to the person who made such
9    request disclosing that such controller believes such
10    request is fraudulent, why such controller believes such
11    request is fraudulent and that such controller shall not
12    comply with such request.
13        (5) A controller that has obtained personal data about
14    a consumer from a source other than the consumer shall be
15    deemed in compliance with a consumer's request to delete
16    such data pursuant to paragraph (3) of subsection (a) by
17    retaining a record of the deletion request and the minimum
18    data necessary for the purpose of ensuring the consumer's
19    personal data remains deleted from the controller's
20    records and not using such retained data for any other
21    purpose pursuant to this Act, or opting the consumer out
22    of the processing of such personal data for any purpose
23    except for those exempted pursuant this Act.
24    (d) A controller shall establish a process for a consumer
25to appeal the controller's refusal to take action on a request
26within a reasonable period of time after the consumer's

 

 

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1receipt of the decision. The appeal process shall be
2conspicuously available and similar to the process for
3submitting requests to initiate action pursuant to this
4Section. Not later than 60 days after receipt of an appeal, a
5controller shall inform the consumer in writing of any action
6taken or not taken in response to the appeal, including a
7written explanation of the reasons for the decisions. If the
8appeal is denied, the controller shall also provide the
9consumer with an online mechanism, if available, or other
10method through which the consumer may contact the Attorney
11General to submit a complaint.
 
12    Section 25. Consumer agents. A consumer may designate
13another person to serve as the consumer's authorized agent,
14and act on such consumer's behalf, to opt out of the processing
15of such consumer's personal data for one or more of the
16purposes specified in paragraph (5) of subsection (a) of
17Section 20. The consumer may designate such authorized agent
18by way of, among other things, a technology, including, but
19not limited to, an Internet link or a browser setting, browser
20extension or global device setting, indicating such consumer's
21intent to opt out of such processing. A controller shall
22comply with an opt-out request received from an authorized
23agent if the controller is able to verify, with commercially
24reasonable effort, the identity of the consumer and the
25authorized agent's authority to act on such consumer's behalf.
 

 

 

HB5581- 18 -LRB103 38323 JRC 68458 b

1    Section 30. Controller responsibilities.
2    (a) A controller shall:
3        (1) Limit the collection of personal data to what is
4    adequate, relevant and reasonably necessary in relation to
5    the purposes for which such data is processed, as
6    disclosed to the consumer;
7        (2) Except as otherwise provided in this Act, not
8    process personal data for purposes that are neither
9    reasonably necessary to, nor compatible with, the
10    disclosed purposes for which such personal data is
11    processed, as disclosed to the consumer, unless the
12    controller obtains the consumer's consent;
13        (3) Establish, implement and maintain reasonable
14    administrative, technical and physical data security
15    practices to protect the confidentiality, integrity and
16    accessibility of personal data appropriate to the volume
17    and nature of the personal data at issue;
18        (4) Not process sensitive data concerning a consumer
19    without obtaining the consumer's consent, or, in the case
20    of the processing of sensitive data concerning a known
21    child, without processing such data in accordance with
22    COPPA;
23        (5) Not process personal data in violation of the laws
24    of this State and federal laws that prohibit unlawful
25    discrimination against consumers;

 

 

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1        (6) Provide an effective mechanism for a consumer to
2    revoke the consumer's consent under this Section that is
3    at least as easy as the mechanism by which the consumer
4    provided the consumer's consent and, upon revocation of
5    such consent, cease to process the data as soon as
6    practicable, but not later than 15 days after the receipt
7    of such request; and
8        (7) Not process the personal data of a consumer for
9    purposes of targeted advertising, or sell the consumer's
10    personal data without the consumer's consent, under
11    circumstances where a controller has actual knowledge, and
12    willfully disregards, that the consumer is at least 13
13    years of age but younger than 16 years of age. A controller
14    shall not discriminate against a consumer for exercising
15    any of the consumer rights contained in this Act,
16    including denying goods or services, charging different
17    prices or rates for goods or services or providing a
18    different level of quality of goods or services to the
19    consumer.
20    (b) Nothing in this Section shall be construed to require
21a controller to provide a product or service that requires the
22personal data of a consumer which the controller does not
23collect or maintain, or prohibit a controller from offering a
24different price, rate, level, quality or selection of goods or
25services to a consumer, including offering goods or services
26for no fee, if the offering is in connection with a consumer's

 

 

HB5581- 20 -LRB103 38323 JRC 68458 b

1voluntary participation in a bona fide loyalty, rewards,
2premium features, discounts or club card program.
3    (c) A controller shall provide consumers with a reasonably
4accessible, clear and meaningful privacy notice meeting
5standards established by the Secretary of State that includes:
6        (1) The categories of personal data processed by the
7    controller;
8        (2) The purpose for processing personal data;
9        (3) How consumers may exercise their consumer rights,
10    including how a consumer may appeal a controller's
11    decision with regard to the consumer's request;
12        (4) The categories of personal data that the
13    controller shares with third parties, if any;
14        (5) The categories of third parties, if any, with
15    which the controller shares personal data; and
16        (6) An active electronic mail address or other online
17    mechanism that the consumer may use to contact the
18    controller.
19    (d) If a controller sells personal data to third parties
20or processes personal data for targeted advertising, the
21controller shall clearly and conspicuously disclose such
22processing, as well as the manner in which a consumer may
23exercise the right to opt out of such processing.
24    (e) A controller shall establish, and shall describe in a
25privacy notice, consistent with the requirements of the
26Secretary of State, one or more secure and reliable means for

 

 

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1consumers to submit a request to exercise their consumer
2rights pursuant to this Act. Such means shall take into
3account the ways in which consumers normally interact with the
4controller, the need for secure and reliable communication of
5such requests and the ability of the controller to verify the
6identity of the consumer making the request. A controller
7shall not require a consumer to create a new account in order
8to exercise consumer rights, but may require a consumer to use
9an existing account. Any such means shall include:
10        (1) Providing a clear and conspicuous link on the
11    controller's Internet website to an Internet web page that
12    enables a consumer, or an agent of the consumer, to opt out
13    of the targeted advertising or sale of the consumer's
14    personal data; and
15        (2) Not later than January 1, 2025, allowing a
16    consumer to opt out of any processing of the consumer's
17    personal data for the purposes of targeted advertising, or
18    any sale of such personal data, through an opt-out
19    preference signal sent, with such consumer's consent, by a
20    platform, technology or mechanism to the controller,
21    indicating such consumer's intent to opt out of any such
22    processing or sale. Such platform, technology or mechanism
23    shall:
24            (A) Not unfairly disadvantage another controller;
25            (B) Not make use of a default setting, but,
26        rather, require the consumer to make an affirmative,

 

 

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1        freely given and unambiguous choice to opt out of any
2        processing of such consumer's personal data pursuant
3        to this Act;
4            (C) Be consumer-friendly and easy to use by the
5        average consumer;
6            (D) Be as consistent as possible with any other
7        similar platform, technology or mechanism required by
8        any federal or State law or regulation; and
9            (E) Enable the controller to accurately determine
10        whether the consumer is a resident of this State and
11        whether the consumer has made a legitimate request to
12        opt out of any sale of such consumer's personal data or
13        targeted advertising.
14        (3) If a consumer's decision to opt out of any
15    processing of the consumer's personal data for the
16    purposes of targeted advertising, or any sale of such
17    personal data, through an opt-out preference signal sent
18    in accordance with this subsection (e) conflicts with the
19    consumer's existing controller-specific privacy setting or
20    voluntary participation in a controller's bona fide
21    loyalty, rewards, premium features, discounts or club card
22    program, the controller shall comply with such consumer's
23    opt-out preference signal but may notify such consumer of
24    such conflict and provide to such consumer the choice to
25    confirm such controller-specific privacy setting or
26    participation in such program.

 

 

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1    (e-5) If a controller responds to consumer opt-out
2requests received pursuant to subsection (e) by informing the
3consumer of a charge for the use of any product or service, the
4controller shall present the terms of any financial incentive
5offered pursuant to this Section for the retention, use, sale
6or sharing of the consumer's personal data.
 
7    Section 35. Processor responsibilities.
8    (a) A processor shall adhere to the instructions of a
9controller and shall assist the controller in meeting the
10controller's obligations under this Act. Such assistance shall
11include:
12        (1) Taking into account the nature of processing and
13    the information available to the processor, by appropriate
14    technical and organizational measures, insofar as is
15    reasonably practicable, to fulfill the controller's
16    obligation to respond to consumer rights requests;
17        (2) Taking into account the nature of processing and
18    the information available to the processor, by assisting
19    the controller in meeting the controller's obligations in
20    relation to the security of processing the personal data
21    and in relation to the notification of a breach of
22    security or of the system of the processor, in order to
23    meet the controller's obligations; and
24        (3) Providing necessary information to enable the
25    controller to conduct and document data protection

 

 

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1    assessments.
2    (b) A contract between a controller and a processor shall
3govern the processor's data processing procedures with respect
4to processing performed on behalf of the controller. The
5contract shall be binding and clearly set forth instructions
6for processing data, the nature and purpose of processing, the
7type of data subject to processing, the duration of processing
8and the rights and obligations of both parties. The contract
9shall also require that the processor:
10        (1) Ensure that each person processing personal data
11    is subject to a duty of confidentiality with respect to
12    the data;
13        (2) At the controller's direction, delete or return
14    all personal data to the controller as requested at the
15    end of the provision of services, unless retention of the
16    personal data is required by law;
17        (3) Upon the reasonable request of the controller,
18    make available to the controller all information in its
19    possession necessary to demonstrate the processor's
20    compliance with the obligations in this Act;
21        (4) After providing the controller an opportunity to
22    object, engage any subcontractor pursuant to a written
23    contract that requires the subcontractor to meet the
24    obligations of the processor with respect to the personal
25    data; and
26        (5) Allow, and cooperate with, reasonable assessments

 

 

HB5581- 25 -LRB103 38323 JRC 68458 b

1    by the controller or the controller's designated assessor,
2    or the processor may arrange for a qualified and
3    independent assessor to conduct an assessment of the
4    processor's policies and technical and organizational
5    measures in support of the obligations under this Act,
6    using an appropriate and accepted control standard or
7    framework and assessment procedure for such assessments.
8    The processor shall provide a report of such assessment to
9    the controller upon request.
10    (c) Nothing in this Section shall be construed to relieve
11a controller or processor from the liabilities imposed on the
12controller or processor by virtue of such controller's or
13processor's role in the processing relationship, as described
14in this Act.
15    (d) Determining whether a person is acting as a controller
16or processor with respect to a specific processing of data is a
17fact-based determination that depends upon the context in
18which personal data is to be processed. A person who is not
19limited in such person's processing of personal data pursuant
20to a controller's instructions, or who fails to adhere to such
21instructions, is a controller and not a processor with respect
22to a specific processing of data. A processor that continues
23to adhere to a controller's instructions with respect to a
24specific processing of personal data remains a processor. If a
25processor begins, alone or jointly with others, determining
26the purposes and means of the processing of personal data, the

 

 

HB5581- 26 -LRB103 38323 JRC 68458 b

1processor is a controller with respect to such processing and
2may be subject to an enforcement action Section 55.
 
3    Section 40. Heightened risk of harm.
4    (a) A controller shall conduct and document a data
5protection assessment for each of the controller's processing
6activities that presents a heightened risk of harm to a
7consumer. For the purposes of this Section, processing that
8presents a heightened risk of harm to a consumer includes:
9        (1) The processing of personal data for the purposes
10    of targeted advertising;
11        (2) The sale of personal data;
12        (3) The processing of personal data for the purposes
13    of profiling, where such profiling presents a reasonably
14    foreseeable risk of unfair or deceptive treatment of, or
15    unlawful disparate impact on, consumers, financial,
16    physical or reputational injury to consumers, a physical
17    or other intrusion upon the solitude or seclusion, or the
18    private affairs or concerns, of consumers, where such
19    intrusion would be offensive to a reasonable person, or
20    other substantial injury to consumers; and
21        (4) The processing of sensitive data.
22    (b) Data protection assessments conducted pursuant to
23subsection (a) shall identify and weigh the benefits that may
24flow, directly and indirectly, from the processing to the
25controller, the consumer, other stakeholders and the public

 

 

HB5581- 27 -LRB103 38323 JRC 68458 b

1against the potential risks to the rights of the consumer
2associated with such processing, as mitigated by safeguards
3that can be employed by the controller to reduce such risks.
4The controller shall factor into any such data protection
5assessment the use of deidentified data and the reasonable
6expectations of consumers, as well as the context of the
7processing and the relationship between the controller and the
8consumer whose personal data will be processed.
9    (c) The Attorney General may require that a controller
10disclose any data protection assessment that is relevant to an
11investigation conducted by the Attorney General, and the
12controller shall make the data protection assessment available
13to the Attorney General. The Attorney General may evaluate the
14data protection assessment for compliance with the
15responsibilities set forth in this Act. Data protection
16assessments shall be confidential and shall be exempt from
17disclosure under 5 ILCS 120. To the extent any information
18contained in a data protection assessment disclosed to the
19Attorney General includes information subject to
20attorney-client privilege or work product protection, such
21disclosure shall not constitute a waiver of such privilege or
22protection.
23    (d) A single data protection assessment may address a
24comparable set of processing operations that include similar
25activities.
26    (e) If a controller conducts a data protection assessment

 

 

HB5581- 28 -LRB103 38323 JRC 68458 b

1for the purpose of complying with another applicable law or
2regulation, the data protection assessment shall be deemed to
3satisfy the requirements established in this Section if such
4data protection assessment is reasonably similar in scope and
5effect to the data protection assessment that would otherwise
6be conducted pursuant to this Section.
7    (f) Data protection assessment requirements shall apply to
8processing activities created or generated after July 1, 2024,
9and are not retroactive.
 
10    Section 45. Deidentified data.
11    (a) Any controller in possession of deidentified data
12shall:
13        (1) Take reasonable measures to ensure that the data
14    cannot be associated with an individual;
15        (2) Publicly commit to maintaining and using
16    deidentified data without attempting to reidentify the
17    data; and
18        (3) Contractually obligate any recipients of the
19    deidentified data to comply with all provisions of this
20    Act.
21    (b) Nothing in this Act shall be construed to:
22        (1) Require a controller or processor to reidentify
23    deidentified data or pseudonymous data; or
24        (2) Maintain data in identifiable form, or collect,
25    obtain, retain, or access any data or technology, in order

 

 

HB5581- 29 -LRB103 38323 JRC 68458 b

1    to be capable of associating an authenticated consumer
2    request with personal data.
3    (c) Nothing in this Act shall be construed to require a
4controller or processor to comply with an authenticated
5consumer rights request if the controller:
6        (1) Is not reasonably capable of associating the
7    request with the personal data or it would be unreasonably
8    burdensome for the controller to associate the request
9    with the personal data;
10        (2) Does not use the personal data to recognize or
11    respond to the specific consumer who is the subject of the
12    personal data, or associate the personal data with other
13    personal data about the same specific consumer; and
14        (3) Does not sell the personal data to any third party
15    or otherwise voluntarily disclose the personal data to any
16    third party other than a processor, except as otherwise
17    permitted in this Section.
18    (d) The rights afforded under paragraphs (1) through (4)
19of subsection (a) of Section 20 shall not apply to
20pseudonymized data in cases where the controller is able to
21demonstrate that any information necessary to identify the
22consumer is kept separately and is subject to effective
23technical and organizational controls that prevent the
24controller from accessing such information.
25    (e) A controller that discloses pseudonymous data or
26deidentified data shall exercise reasonable oversight to

 

 

HB5581- 30 -LRB103 38323 JRC 68458 b

1monitor compliance with any contractual commitments to which
2the pseudonymous data or deidentified data is subject and
3shall take appropriate steps to address any breaches of those
4contractual commitments.
 
5    Section 50. Controller responsibilities and obligations.
6    (a) Nothing in this Act shall be construed to restrict a
7controller's or processor's ability to:
8        (1) Comply with federal, State or municipal ordinances
9    or regulations;
10        (2) Comply with a civil, criminal or regulatory
11    inquiry, investigation, subpoena or summons by federal,
12    State, municipal or other governmental authorities;
13        (3) Cooperate with law enforcement agencies concerning
14    conduct or activity that the controller or processor
15    reasonably and in good faith believes may violate federal,
16    State or municipal ordinances or regulations;
17        (4) Investigate, establish, exercise, prepare for or
18    defend legal claims;
19        (5) Provide a product or service specifically
20    requested by a consumer;
21        (6) Perform under a contract to which a consumer is a
22    party, including fulfilling the terms of a written
23    warranty;
24        (7) Take steps at the request of a consumer prior to
25    entering into a contract;

 

 

HB5581- 31 -LRB103 38323 JRC 68458 b

1        (8) Take immediate steps to protect an interest that
2    is essential for the life or physical safety of the
3    consumer or another individual, and where the processing
4    cannot be manifestly based on another legal basis;
5        (9) Prevent, detect, protect against or respond to
6    security incidents, identity theft, fraud, harassment,
7    malicious or deceptive activities or any illegal activity,
8    preserve the integrity or security of systems or
9    investigate, report or prosecute those responsible for any
10    such action;
11        (10) Engage in public or peer-reviewed scientific or
12    statistical research in the public interest that adheres
13    to all other applicable ethics and privacy laws and is
14    approved, monitored and governed by an institutional
15    review board that determines, or similar independent
16    oversight entities that determine:
17            (A) Whether the deletion of the information is
18        likely to provide substantial benefits that do not
19        exclusively accrue to the controller,
20            (B) The expected benefits of the research outweigh
21        the privacy risks, and
22            (C) Whether the controller has implemented
23        reasonable safeguards to mitigate privacy risks
24        associated with research, including any risks
25        associated with reidentification;
26        (11) Assist another controller, processor, or third

 

 

HB5581- 32 -LRB103 38323 JRC 68458 b

1    party with any of the obligations under this Act; or
2        (12) Process personal data for reasons of public
3    interest in the area of public health, community health or
4    population health, but solely to the extent that such
5    processing is:
6            (A) Subject to suitable and specific measures to
7        safeguard the rights of the consumer whose personal
8        data is being processed, and
9            (B) Under the responsibility of a professional
10        subject to confidentiality obligations under federal,
11        State or local law.
12    (b) The obligations imposed on controllers or processors
13under this Act shall not restrict a controller's or
14processor's ability to collect, use or retain data for
15internal use to:
16        (1) Conduct internal research to develop, improve or
17    repair products, services or technology;
18        (2) Effectuate a product recall;
19        (3) Identify and repair technical errors that impair
20    existing or intended functionality; or
21        (4) Perform internal operations that are reasonably
22    aligned with the expectations of the consumer or
23    reasonably anticipated based on the consumer's existing
24    relationship with the controller, or are otherwise
25    compatible with processing data in furtherance of the
26    provision of a product or service specifically requested

 

 

HB5581- 33 -LRB103 38323 JRC 68458 b

1    by a consumer or the performance of a contract to which the
2    consumer is a party.
3    (c) The obligations imposed on controllers or processors
4under this Act shall not apply where compliance by the
5controller or processor with said Sections would violate an
6evidentiary privilege under the laws of this State. Nothing in
7this Act shall be construed to prevent a controller or
8processor from providing personal data concerning a consumer
9to a person covered by an evidentiary privilege under the laws
10of the State as part of a privileged communication.
11    (d) A controller or processor that discloses personal data
12to a processor or third-party controller in accordance with
13this Act shall not be deemed to have violated said Sections if
14the processor or third-party controller that receives and
15processes such personal data violates said Sections, provided,
16at the time the disclosing controller or processor disclosed
17such personal data, the disclosing controller or processor did
18not have actual knowledge that the receiving processor or
19third-party controller would violate said Sections. A
20third-party controller or processor receiving personal data
21from a controller or processor in compliance with this Act is
22likewise not in violation of said Sections for the
23transgressions of the controller or processor from which such
24third-party controller or processor receives such personal
25data.
26    (e) Nothing in this Act shall be construed to:

 

 

HB5581- 34 -LRB103 38323 JRC 68458 b

1        (1) Impose any obligation on a controller or processor
2    that adversely affects the rights or freedoms of any
3    person, including, but not limited to, the rights of any
4    person to freedom of speech or freedom of the press
5    guaranteed in the First Amendment to the United States
6    Constitution; or
7        (2) Apply to any person's processing of personal data
8    in the course of such person's purely personal or
9    household activities.
10    (f) Personal data processed by a controller pursuant to
11this Section may be processed to the extent that such
12processing is:
13        (1) Reasonably necessary and proportionate to the
14    purposes listed in this Section; and
15        (2) Adequate, relevant and limited to what is
16    necessary in relation to the specific purposes listed in
17    this Section. Personal data collected, used or retained
18    under paragraph (2) of subsection (a), where applicable,
19    take into account the nature and purpose or purposes of
20    such collection, use or retention. Such data shall be
21    subject to reasonable administrative, technical and
22    physical measures to protect the confidentiality,
23    integrity and accessibility of the personal data and to
24    reduce reasonably foreseeable risks of harm to consumers
25    relating to such collection, use or retention of personal
26    data.

 

 

HB5581- 35 -LRB103 38323 JRC 68458 b

1    (g) If a controller processes personal data pursuant to an
2exemption in this Section, the controller bears the burden of
3demonstrating that such processing qualifies for the exemption
4and complies with the requirements in subsection (f).
5    (h) Processing personal data for the purposes expressly
6identified in this Section shall not solely make a legal
7entity a controller with respect to such processing.
 
8    Section 55. Notice; enforcement.
9    (a) The Attorney General shall have exclusive authority to
10enforce violations under this Act.
11    (b) During the period beginning January 1, 2025 and ending
12December 31, 2025, the Attorney General shall, and following
13said period the Attorney General may, prior to initiating any
14action for a violation under this Act, issue a notice of
15violation to the controller if the Attorney General determines
16that a cure is possible. If the controller fails to cure such
17violation within 60 days of receipt of the notice of
18violation, the Attorney General may bring an action pursuant
19to this Section.
20    (c) Beginning January 1, 2026, in determining whether to
21grant a controller or processor the opportunity to cure an
22alleged violation described under this Act, the Attorney
23General may consider:
24        (1) The number of violations;
25        (2) The size and complexity of the controller or

 

 

HB5581- 36 -LRB103 38323 JRC 68458 b

1    processor;
2        (3) The nature and extent of the controller's or
3    processor's processing activities;
4        (4) The substantial likelihood of injury to the
5    public;
6        (5) The safety of persons or property; and
7        (6) Whether such alleged violation was likely caused
8    by human or technical error.
9    (d) Nothing in this Act shall be construed as providing
10the basis for, or be subject to, a private right of action for
11violations under this Act or any other law.
12    (e) A violation under this Act shall constitute an unfair
13method of competition or any unfair or deceptive act or
14practice in the conduct of any trade or commerce within this
15State under the Consumer Fraud and Deceptive Business
16Practices Act and shall be enforced by the Attorney General.
 
17    Section 60. Compliance with other law. An individual or
18entity covered by this Act and other law regarding third-party
19providers of information and services is required to comply
20with both laws, provided, however, that to the extent there is
21a direct conflict between the 2 laws which precludes
22compliance with both statutes, the individual or entity shall
23comply with the statute that provides the greater measure of
24privacy protection to individuals. For purposes of this
25Section, an "opt-in" procedure for an individual to grant

 

 

HB5581- 37 -LRB103 38323 JRC 68458 b

1consent for the disclosure of personal information shall be
2deemed to provide a greater measure of protection of privacy
3than the "opt-out" procedure established under this Act.
 
4    Section 99. Effective date. This Act takes effect January
51, 2025.