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'Ambiguity for Dealerships'

Amended Oregon Privacy Law Addresses Kids, Cars and Location

Oregon will add location and child data restrictions to its comprehensive privacy law. Gov. Tina Kotek (D) signed HB-2008 on Tuesday, days after signing another amendment that added automotive rules to the Oregon Consumer Privacy Act.

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As a result of the changes, Oregon’s privacy law will now prohibit processing, profiling or selling data of a consumer who a controller knows is younger than 16. And it would ban selling precise geolocation data that shows the location of a consumer within 1,750 feet.

The new location rule includes an exemption to language explaining what level of personal geolocation data may not be sold. It says that “personal data that is not subject to sale under this subparagraph does not include the content of communications or any data generated by or connected to advanced utility metering infrastructure systems or equipment for use by a utility.”

Meanwhile, under HB-3875, signed May 27, Oregon privacy rules related to collecting and using personal data, including consumer rights to access, correct, delete and port data, will now “apply to a motor vehicle manufacturer and any affiliate of a motor vehicle manufacturer that controls or processes any personal data obtained from a consumer’s use of a motor vehicle or any component of a motor vehicle.”

HB-2008 takes effect immediately, whereas HB-3875 becomes effective Sept. 28.

While HB-3875’s “expansion is clear in its application to vehicle manufacturers, it raises important questions for automobile dealerships, particularly those ‘affiliated’ -- formally or informally -- with manufacturers,” JacksonLewis attorney Joseph Lazzarotti blogged Friday. “Dealerships should consider whether they may now be subject to the full scope of Oregon’s privacy law.”

Defining an affiliate “introduces some ambiguity for dealerships,” said Lazzarotti. “Many dealerships operate as independent businesses, even if they sell only one manufacturer’s vehicles and display that brand prominently. While they may be contractually tied to a manufacturer, they may not meet the legal standard of being controlled by or under common control with that manufacturer as described in the definition.”

“However, certain dealership groups -- particularly those owned or operated by manufacturers or holding companies -- may clearly fall within the definition of ‘affiliate.’”