New York State Bans All Debt Collection Attempts Through Social Media

Recently, New York State chaptered a new law, amending the state’s general business law, to prohibit creditors from using social media platforms for debt collection. The legislation aims to protect consumers by preventing debt collectors from contacting debtors via social media. The bill defines what constitutes a social media platform. This act took effect immediately upon passage.

STATE OF NEW YORK
________________________________________________________________________
1035–B
2023-2024 Regular Sessions
IN ASSEMBLY
January 13, 2023
___________
Introduced by M. of A. BICHOTTE HERMELYN, DICKENS, TAYLOR, GIBBS, GONZA-
LEZ-ROJAS, SIMON, LEE — read once and referred to the Committee on
Consumer Affairs and Protection — recommitted to the Committee on
Consumer Affairs and Protection in accordance with Assembly Rule 3,
sec. 2 — committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee — reported and referred to
the Committee on Rules — Rules Committee discharged, bill amended,
ordered reprinted as amended and recommitted to the Committee on Rules
AN ACT to amend the general business law, in relation to prohibiting the
use of social media platforms for the purposes of collecting debts
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. Section 601 of the general business law is amended by
2 adding a new subdivision 12 to read as follows:
3 12. Use a social media platform as a means to collect on a consumer
4 claim from a debtor. For purposes of this subdivision, “social media
5 platform” means a public or semi-public internet-based service or appli-
6 cation that has users in New York state that meets the following crite-
7 ria:
8 (a) a substantial function of the service or application is to connect
9 users in order to allow users to interact socially with each other with-
10 in the service or application. A service or application that provides
11 e-mail or direct messaging services shall not be considered to meet
12 this criterion on the basis of that function alone; and
13 (b) the service or application allows individuals to: (i) construct a
14 public or semi-public profile for purposes of signing up and using the
15 service or application; (ii) create a list of other users with whom they
16 share a connection within the system; and (iii) create or post content
17 viewable or audible by other users, including, but not limited to,
18 livestreams, on message boards, in chat rooms, or through a landing page
19 or main feed that presents the user with content generated by other
20 users.
21 § 2. This act shall take effect immediately.
EXPLANATION–Matter in (underscored) is new; matter in brackets italics
LBD01176-04-4