State Legislatures in Full Swing

With state legislatures open for business across the country, ELFA continues to witness a blue state trend to expand traditional consumer protections into commercial contracts. The most threatening of these efforts have taken the form of state finance licensing and financial disclosure legislation. The states most active in these efforts continue to be California, New Jersey and New York. Your ELFA is on the ground and working closely with our member experts to meet and address these challenges.  For a complete understanding of current and important 2019 carry-over legislation, please find ELFA’s January 2020 State Legislature Report at www.elfaonline.org/advocacy/newsletters/.

Washington State Data Privacy Legislation Revised With ELFA Amendment
Washington legislation that would require commercial leased equipment capable of connecting to the Internet to have a specified warning sticker affixed has been revised with an amendment drafted by ELFA. The office of Rep. Norma Smith (R) responded positively to ELFA concerns and worked cooperatively in releasing Substitute House Bill 2365 adopting ELFA text making it applicable only to a “connected device” that is “acquired by a natural person residing in Washington state for personal, family or household use.”

Washington House Bill 2365 introduced by Rep. Norma Smith (R-Island County and parts of Skagit and Snohomish counties) is a problem for ELFA members. With very little notice, the bill was scheduled for a hearing at 8 a.m. on Wednesday, Jan. 15 in the House Innovation, Technology & Economic Development Committee where the Sponsor serves as ranking member. ELFA immediately brought our concerns to the attention of the Sponsor.  ELFA members are among the “retailers” the bill targets. This proposal seeks to require the office of privacy and data protection to design a warning sticker that must be placed on all products entering the state that are able to transmit user data to the device manufacturer or any separate business entity. HB 2365 appears to give equal liability to retailers (which would include ELFA members) and manufacturers for placement of these warning stickers as indicated by provisions such as designing labels that are “easy to use for manufacturers and retailers of applicable connected devices.”  ELFA will keep members updated on this bill’s progress.