AN ACT Relating to protecting the personal information of consumers who use financial services applications on their mobile or internet-connected devices;
Summary
HB2380 creates a new chapter in Washington law aimed at protecting the personal information of consumers who use financial services applications on mobile phones, computers, and other internet-connected devices. The bill defines key terms such as “banking service,” “consumer,” “financial institution,” “mobile or internet application,” “necessary to provide a banking service,” “personal information,” and “third-party application,” and applies those definitions throughout the new chapter.
The bill generally requires financial institutions that offer banking services through mobile or internet applications to disclose when those apps may collect, store, or share personal information, including information obtained from third-party applications installed on a consumer’s device. It also requires institutions to give consumers a right to opt out of collection, storage, or sharing of personal information when that activity is not necessary to provide the banking service. The bill includes exceptions allowing data practices that are necessary to provide the service and consistent with the agreement between the institution and the consumer, and it also allows institutions to avoid broader data collection if they design their apps to limit collection to what is necessary and to avoid third-party app data sharing.
Impact
HB2380 would add a new consumer privacy chapter to Title 19 RCW and make violations of the chapter an unfair or deceptive act in trade or commerce and an unfair method of competition under the Consumer Protection Act (chapter 19.86 RCW). It would also authorize recovery of statutory damages or actual damages, with statutory damages recoverable by the attorney general or by an injured person, and any statutory damages recovered by the attorney general must be paid as restitution to the injured person. The bill therefore expands potential liability for financial institutions and creates a new enforcement mechanism for consumers and the attorney general.
Sentiment
Based on the bill text and available context, the measure appears to be framed as a consumer-protection and privacy bill, with a generally favorable policy orientation toward limiting unnecessary data collection by financial apps. No committee transcript or vote record is available here, so there is no documented debate or recorded opposition in the provided materials. The overall tone of the legislation is protective of consumers and supportive of transparency and opt-out rights.
Contention
The main points of contention likely center on how broadly “personal information” is defined, what counts as “necessary” to provide a banking service, and whether financial institutions may continue sharing data with third-party applications or collecting data from apps installed on a consumer’s device. Financial institutions may view the disclosure and opt-out requirements, along with potential Consumer Protection Act liability and damages exposure, as burdensome or uncertain. Consumer advocates would likely support the bill’s restrictions and notice requirements, especially the limits on third-party app data collection and sharing.