Download Zipped Enrolled WordPerfect HB0323.ZIP
[Introduced][Amended][Status][Bill Documents][Fiscal Note][Bills Directory]

H.B. 323 Enrolled

                 

SPYWARE REGULATION

                 
2004 GENERAL SESSION

                 
STATE OF UTAH

                 
Sponsor: Stephen H. Urquhart

                 
                  LONG TITLE
                  General Description:
                      This bill enacts provisions within the Commerce and Trade Code relating to certain uses
                  of spyware.
                  Highlighted Provisions:
                      This bill:
                      .    defines terms;
                      .    prohibits spyware from delivering advertisements to a computer under certain
                  circumstances;
                      .    requires spyware to provide removal procedures;
                      .    allows a website, trademark, or copyright owner to bring an action to enforce the
                  requirements; and
                      .    requires the Division of Consumer Protection to collect complaints.
                  Monies Appropriated in this Bill:
                      None
                  Other Special Clauses:
                      None
                  Utah Code Sections Affected:
                  ENACTS:
                      13-39-101, Utah Code Annotated 1953
                      13-39-102, Utah Code Annotated 1953
                      13-39-201, Utah Code Annotated 1953
                      13-39-301, Utah Code Annotated 1953
                      13-39-302, Utah Code Annotated 1953


                      13-39-401, Utah Code Annotated 1953
                 
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 13-39-101 is enacted to read:
                 
CHAPTER 39. SPYWARE CONTROL ACT

                 
Part 1. General Provisions

                      13-39-101. Title.
                      This chapter is known as the "Spyware Control Act."
                      Section 2. Section 13-39-102 is enacted to read:
                      13-39-102. Definitions.
                      As used in this chapter:
                      (1) "Context based triggering mechanism" means a software based trigger or program
                  residing on a consumer's computer that displays an advertisement according to:
                      (a) the current Internet website accessed by a user; or
                      (b) the contents or characteristics of the current Internet website accessed by a user.
                      (2) "Division" means the Division of Consumer Protection in the Department of
                  Commerce.
                      (3) "Internet" is as defined in the Internet Tax Freedom Act, Pub. L. No. 105-277.
                      (4) Except as provided in Subsection (5), "spyware" means software residing on a
                  computer that:
                      (a) monitors the computer's usage;
                      (b) (i) sends information about the computer's usage to a remote computer or server; or
                      (ii) displays or causes to be displayed an advertisement in response to the computer's
                  usage if the advertisement:
                      (A) does not clearly identify the full legal name of the entity responsible for delivering the
                  advertisement;
                      (B) uses a federally registered trademark as a trigger for the display of the advertisement
                  by a person other than:

- 2 -


                      (I) the trademark owner;
                      (II) an authorized agent or licensee of the trademark owner; or
                      (III) a recognized Internet search engine;
                      (C) uses a triggering mechanism to display the advertisement according to the Internet
                  websites accessed by a user; or
                      (D) uses a context based triggering mechanism to display the advertisement that partially
                  or wholly covers or obscures paid advertising or other content on an Internet website in a way
                  that interferes with a user's ability to view the Internet website; and
                      (c) does not:
                      (i) obtain the consent of the user, at the time of, or after installation of the software but
                  before the software does any of the actions described in Subsection (4)(b):
                      (A) to a license agreement:
                      (I) presented in full; and
                      (II) written in plain language;
                      (B) to a notice of the collection of each specific type of information to be transmitted as a
                  result of the software installation;
                      (C) to a clear and representative full-size example of each type of advertisement that may
                  be delivered;
                      (D) to a truthful statement of the frequency with which each type of advertisement may
                  be delivered; and
                      (E) for each type of advertisement delivered by the software, a clear description of a
                  method by which a user may distinguish the advertisement by its appearance from an
                  advertisement generated by other software services; and
                      (ii) provide a method:
                      (A) by which a user may quickly and easily disable and remove the software from the
                  user's computer;
                      (B) that does not have other effects on the non-affiliated parts of the user's computer; and
                      (C) that uses obvious, standard, usual, and ordinary methods for removal of computer

- 3 -


                  software.
                      (5) Notwithstanding Subsection (4), "spyware" does not include:
                      (a) software designed and installed solely to diagnose or resolve technical difficulties;
                      (b) software or data that solely report to an Internet website information previously
                  stored by the Internet website on the user's computer, including:
                      (i) cookies;
                      (ii) HTML code; or
                      (iii) Java Scripts; or
                      (c) an operating system.
                      (6) "Usage" means:
                      (a) the Internet websites accessed by a user;
                      (b) the contents or characteristics of the Internet websites accessed by a user;
                      (c) a user's personal information, including:
                      (i) a first and last name of a user, whether:
                      (A) given at birth or adoption;
                      (B) assumed; or
                      (C) legally changed;
                      (ii) any of the following with respect to a user's home or other physical address:
                      (A) the street name;
                      (B) the name of the city or town; or
                      (C) the zip code;
                      (iii) an electronic mail address;
                      (iv) a telephone number;
                      (v) a Social Security number;
                      (vi) any personal identification number;
                      (vii) a credit card number;
                      (viii) any access code associated with a credit card;
                      (ix) a date of birth, birth certificate number, or place of birth; or

- 4 -


                      (x) a password or access code; or
                      (d) a user's submission to forms or Internet websites.
                      (7) "User" means:
                      (a) a computer owner; or
                      (b) a person who accesses an Internet website.
                      Section 3. Section 13-39-201 is enacted to read:
                 
Part 2. Prohibited Conduct

                      13-39-201. Prohibited conduct.
                      (1) A person may not:
                      (a) install spyware on another person's computer;
                      (b) cause spyware to be installed on another person's computer; or
                      (c) use a context based triggering mechanism to display an advertisement that partially or
                  wholly covers or obscures paid advertising or other content on an Internet website in a way that
                  interferes with a user's ability to view the Internet website.
                      (2) It is not a defense to a violation of this section that a user may remove or hide an
                  advertisement.
                      Section 4. Section 13-39-301 is enacted to read:
                 
Part 3. Enforcement

                      13-39-301. Private action.
                      (1) An action for a violation of this chapter may be brought:
                      (a) against a person who:
                      (i) violates this chapter; or
                      (ii) causes a violation of this chapter; and
                      (b) by any of the following who are adversely affected by a violation of this chapter:
                      (i) an Internet website owner or registrant;
                      (ii) a trademark or copyright owner; or
                      (iii) an authorized advertiser on an Internet website.
                      (2) In an action under Subsection (1), a person may:

- 5 -


                      (a) obtain an injunction against committing any further violation of this chapter; and
                      (b) recover the greater of:
                      (i) actual damages; or
                      (ii) $10,000 for each separate violation of this chapter.
                      (3) In an action under Subsection (1), a court may:
                      (a) increase the damages up to three times the damages allowed by Subsection (2) if the
                  court finds the defendant willfully or knowingly violated this chapter; and
                      (b) award costs and reasonable attorney fees to a prevailing party.
                      (4) For purposes of this section, a separate violation occurs for each individual
                  occurrence that results in the display of an advertisement described in Subsection
                  13-39-102 (4)(b)(ii).
                      Section 5. Section 13-39-302 is enacted to read:
                      13-39-302. Limitations on actions.
                      (1) A person may not bring an action for a violation of this chapter against an Internet
                  service provider for the routine transmission of:
                      (a) security information; or
                      (b) information that contains an advertisement violating this chapter.
                      (2) A person may not bring a class action under this chapter.
                      Section 6. Section 13-39-401 is enacted to read:
                 
Part 4. Duties of Division

                      13-39-401. Information gathering -- Evaluations.
                      The division shall:
                      (1) establish procedures by which a person may report a violation of this chapter to the
                  division, including:
                      (a) an Internet website; and
                      (b) a toll-free telephone number; and
                      (2) make recommendations to the Public Utilities and Technology Interim Committee if
                  the division finds a need for additional provisions to this chapter.

- 6 -


                 

- 7 -


[Bill Documents][Bills Directory]