In a move that is bound to raise eyebrows among technology firms, New York State and Connecticut have recently enacted laws that prohibit “geofencing” around health care facilities. The laws took effect in New York on July 2, 2023, and in Connecticut on October 1, 2023. The introduction of these laws came in partial response to the Supreme Court Dobbs decision, aiming to protect patients from being targeted by certain advertisers while receiving reproductive services.
The term “geofencing” refers to the use of GPS technology to create a virtual boundary around a physical area. When devices enter or leave these geofenced spaces, companies can send push notifications, alerts, or ads to the device user, providing information about nearby services or products. This form of targeted advertising has been heavily criticized for its potential misuse, especially in sensitive contexts such as healthcare.
As reported by Rivkin Radler LLP, these new geofencing laws have far-reaching implications. Particularly for businesses that have been using this technology to target potential customers in a specific area, these legislations pose significant challenges in terms of adapting their marketing strategies.
For legal professionals dealing in the tech industry, it’s crucial to understand the potential ramifications of this development. Companies that fail to comply with these new laws could face severe legal penalties and reputational damage. On the other hand, for privacy advocates, the measures represent a step in the right direction, towards greater protection of patient privacy.
In conclusion, while these new laws present real challenges for businesses that rely on geofencing technology, they also offer an important opportunity to reflect on and address the ethical issues surrounding the usage of this kind of targeted advertising, especially in relation to healthcare facilities. It will be interesting to follow future amendments and rulings to see how these laws evolve over time.