New York Gov. Kathy Hochul this week signed a sweeping package of bills to enhance consumer data protection in New York into law. While the package tackles various digital safety issues, one law stands out for debt collection professionals: S5703B/A1035B, which bans the use of social media platforms for debt collection.
The details: The newly enacted law prohibits debt collectors from using social media platforms to communicate with consumers about unpaid debts. Specifically, it amends the General Business Law by adding a provision that bars the use of public or semi-public internet services to pursue consumer claims.
What counts as social media? The law defines a “social media platform” as a public or semi-public internet-based service where users can:
- Create profiles for social interaction,
- Connect with others through a network,
- Post or share content visible to others, such as livestreams or posts on feeds.
Platforms offering solely email or direct messaging do not fall under this definition.
What they’re saying:
- State Senator Kevin Parker, who introduced the bill, emphasized, “Debt collectors should not have the ability to invade the personal privacy of New Yorkers through online platforms or social media.”
- Governor Hochul framed the legislative package as essential to ensuring consumer security in a digital-first world: “We are taking bold action to hold companies accountable.”
The bigger picture: This law arrives amid heightened scrutiny of digital communication practices across industries, particularly in consumer finance. Other measures signed alongside S5703B include:
- Enhanced requirements for data breach notifications,
- Stricter protections for sensitive medical information,
- Accountability measures for online hate speech.
