SPRINGFIELD — On Wednesday, the Senate Executive Subcommittee on AI and Social Media held a subject matter hearing on a bill led by State Senator Mary Edly-Allen that would protect consumers from their sensitive data being harvested and sold without their consent.
“Leaning on the federal government at this time is not an option. With the absence of comprehensive legislation federally, it is imperative for the state to take action in protecting our citizens and fill these gaps. Companies that collect our data must be aggressive with their consent requirements,” said Edly-Allen (D-Libertyville). “After the Dobbs decision in 2022, there has been a growing fear across the nation about women’s health apps. This common-sense legislation addresses the lack of consent on data being sold and tackles major privacy concerns.”
Senate Bill 2121 would make it unlawful for a business entity to collect or process an individual’s location information while in Illinois unless it is for a permissive purpose.
While federal laws such as HIPPA — the Health Insurance Portability and Accountability Act, which protects health information from disclosure without a patient’s consent — and state laws like the Personal Information Protection Act provide some protection for Illinoisans, there is a glaring hole in said protections, sparking the creation of Senate Bill 2121 to fill the gap.
For example, most businesses collecting consumer health information through wearable technology, websites and applications do not fall within the scope of HIPAA protection. Location information that is not protected from disclosure under HIPPA would be protected under this legislation.
The measure does not prohibit residents from using their phone’s location services for reasons that directly benefit them — like navigation, food service delivery apps or using a rideshare app — as long as the user provides consent to the covered entity. However, the bill would bar tech companies and data vendors from selling that data to third parties.
“Illinoisans deserve to feel that their privacy is safeguarded,” said Edly-Allen. “Technology is constantly evolving, challenging the rules on its regulation. As a state, we have an obligation to protect our residents from harmful practices like data buying and put solid protections in place.”
Senate Bill 2121 awaits action in the Senate.