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AB-1576 Gender discrimination: pricing: goods.(2017-2018)

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Date Published: 03/22/2017 04:00 AM
AB1576:v98#DOCUMENT

Amended  IN  Assembly  March 21, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1576


Introduced by Assembly Member Levine

February 17, 2017


An act to amend Section 1748.12 of add Section 51.14 to the Civil Code, relating to business. discrimination.


LEGISLATIVE COUNSEL'S DIGEST


AB 1576, as amended, Levine. Credit cards. Gender discrimination: pricing: goods.
Existing law, the Gender Tax Repeal Act of 1995, prohibits a business establishment from discriminating on the basis of gender with respect to the price charged for services of similar or like kind. Existing law excepts from this prohibition price differences based specifically upon the amount of time, difficulty, or cost of providing the services.
This bill would enact the Gender Price Discrimination Act. The bill would prohibit a business from discriminating with respect to the price charged for the same, or substantially similar, goods because of the gender of the targeted user of the good, as specified. The bill would authorize the Attorney General, a district attorney, or a city attorney to prosecute a civil action for preventive relief for a violation of this prohibition.

Existing law requires a credit card issuer to provide written notice to all persons who are holders of the issuer’s credit cards if the issuer discloses marketing information, as defined, concerning a consumer that discloses the consumer’s identity to any person, except as specified.

This bill would make nonsubstantive changes to these provisions.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 51.14 is added to the Civil Code, to read:

51.14.
 (a) This section shall be known, and may be cited, as the Gender Price Discrimination Act.
(b) A business shall not discriminate with respect to the price charged for the same, or substantially similar, goods because of the gender of the targeted user of the good. A good is targeted to a user of a particular gender if the good is designed or intended to be used by, or appeal to, a consumer based on his or her gender as evidenced by either of the following:
(1) The content of marketing materials, advertising, or packaging would suggest to a reasonable person that the product is targeted to a specific gender.
(2) The business placed the product in a location that was labeled for a specific gender.
(c) A violation of subdivision (b) may be prosecuted only by the Attorney General, a district attorney, or a city attorney by a civil action for preventive relief, including an application for a permanent or temporary injunction, restraining order, or other order against the person or persons responsible for the conduct.
(d) An action brought under this section is independent of any other remedy or procedure that may be available to an aggrieved party.

SECTION 1.Section 1748.12 of the Civil Code is amended to read:
1748.12.

(a)For purposes of this section:

(1)“Cardholder” means any consumer to whom a credit card is issued, provided that, when more than one credit card has been issued for the same account, all persons holding those credit cards may be treated as a single cardholder.

(2)“Credit card” means any card, plate, coupon book, or other single credit device existing for the purpose of being used from time to time upon presentation to obtain money, property, labor, or services on credit. “Credit card” does not mean any of the following:

(A)Any single credit device used to obtain telephone property, labor, or services in any transaction under public utility tariffs.

(B)Any device that may be used to obtain credit pursuant to an electronic fund transfer but only if the credit is obtained under an agreement between a consumer and a financial institution to extend credit when the consumer’s asset account is overdrawn or to maintain a specified minimum balance in the consumer’s asset account.

(C)Any key or card key used at an automated dispensing outlet to obtain or purchase petroleum products, as defined in subdivision (c) of Section 13401 of the Business and Professions Code, which will be used primarily for business rather than personal or family purposes.

(3)“Marketing information” means the categorization of cardholders compiled by a credit card issuer, based on a cardholder’s shopping patterns, spending history, or behavioral characteristics derived from account activity which is provided to a marketer of goods or services or a subsidiary or affiliate organization of the company that collects the information for consideration. “Marketing information” does not include aggregate data that does not identify a cardholder based on the cardholder’s shopping patterns, spending history, or behavioral characteristics derived from account activity or any communications to any person in connection with any transfer, processing, billing, collection, chargeback, fraud prevention, credit card recovery, or acquisition of or for credit card accounts.

(b)If the credit card issuer discloses marketing information concerning a cardholder to any person, the credit card issuer shall provide a written notice to the cardholder that clearly and conspicuously describes the cardholder’s right to prohibit the disclosure of marketing information concerning the cardholder that discloses the cardholder’s identity. The notice shall be in 10-point type and shall advise the cardholder of his or her ability to respond either by completing a preprinted form or a toll-free telephone number that the cardholder may call to exercise this right.

(c)The requirements of subdivision (b) shall be satisfied by furnishing the notice to the cardholder:

(1)At least 60 days prior to the initial disclosure of marketing information concerning the cardholder by the credit card issuer.

(2)For all new credit cards issued on or after April 1, 2002, on the form containing the new credit card when the credit card is delivered to the cardholder.

(3)At least once per calendar year, to every cardholder entitled to receive an annual statement of billings rights pursuant to Section 226.9 of Title 12 of the Code of Federal Regulations (12 C.F.R. 226.9) (Regulation Z). The notice required by this paragraph may be included on or with any periodic statement or with the delivery of the renewal card.

(d)(1)The cardholder’s election to prohibit disclosure of marketing information shall be effective only with respect to marketing information that is disclosed to any party beginning 30 days after the credit card issuer has received, at the designated address on the form containing the new credit card or on the preprinted form, or by telephone, the cardholder’s election to prohibit disclosure. This does not apply to the disclosure of marketing information prior to the cardholder’s notification to the credit card issuer of the cardholder’s election.

(2)An election to prohibit disclosure of marketing information shall terminate upon receipt by the credit card issuer of notice from the cardholder that the cardholder’s election to prohibit disclosure is no longer effective.

(e)The requirements of this section do not apply to any of the following communications of marketing information by a credit card issuer:

(1)Communications to any party to, or merchant specified in, the credit card agreement, or to any person whose name appears on the credit card or on whose behalf the credit card is issued.

(2)Communications to consumer credit reporting agencies, as defined in subdivision (d) of Section 1785.3.

(3)To the extent that the Fair Credit Reporting Act preempts the requirements of this section as to communication by a credit card issuer to a corporate subsidiary or affiliate, the credit card issuer may communicate information about a cardholder to a corporate subsidiary or affiliate to the extent and in the manner permitted under that act.

(4)Communications to a third party when the third party is responsible for conveying information from the card issuer to any of its cardholders.

(f)If the laws of the United States require disclosure to cardholders regarding the use of personal information, compliance with the federal requirements shall be deemed to be compliance with this section.

(g)This section shall become operative on April 1, 2002.