In June, a bill that would amend California’s Song-Beverly Credit Card Act (Song-Beverly Act), failed to move forward in California’s state Assembly after passing the Senate in January by a vote of 21 to 13. S.B. 383, introduced by California State Senator Hannah-Beth Jackson (D-Santa Barbara), would restrict the information that entities may collect in online credit card transactions involving electronic downloadable products, but would permit such information collection to help address fraud and identity theft. Opponents of the bill maintained that the legislation would unnecessarily restrict the collection of information in online commerce.
The bill was introduced in response to a 2013 California Supreme Court decision that held that California’s Song-Beverly Act does not apply to online transactions where a product is electronically downloaded.9 The Song-Beverly Act regulates credit card transactions and, with a few exceptions, limits the requesting or requiring any personal information to be recorded as a condition of accepting a credit card.