New York City, December 3, 2025
A coalition of New York business organizations is pressing Governor Kathy Hochul to veto the New York Health Information Privacy Act, which they argue is overly restrictive and could burden businesses while raising costs for consumers. The bill, aimed at enhancing personal health information protections, has drawn both support and criticism, reflecting a deeper conflict between privacy rights and economic vitality in the state.
Business Groups Push for Veto of Health Data Privacy Bill
New York Entrepreneurs Advocate Against Restrictive Legislation
New York City – A coalition of business organizations has set its sights on Governor Kathy Hochul, urging her to veto the New York Health Information Privacy Act. They argue that the proposed data privacy legislation is overly restrictive and poses potential risks not only to businesses but also to consumers.
The New York Health Information Privacy Act aims to expand protections for personal health information beyond the existing federal HIPAA regulations. The bill would make it illegal to sell regulated health information without individual consent and impose stringent restrictions on how third-party companies can process health data. Violators of these provisions would face significant fines.
Supporters of the legislation contend it is crucial to protect New Yorkers’ data privacy, particularly against growing threats to reproductive and LGBTQ+ rights. However, the opposing coalition, which features influential voices including the Business Council of New York State, the National Federation of Independent Business, and the Retail Council of New York, claims that the bill has strayed far from its original purpose. They warn that it could lead to extensive, economy-wide consequences, raising costs for New Yorkers, disrupting essential services, and making it harder for businesses to thrive.
Concerns from Business Groups
The coalition of business groups has voiced several serious concerns regarding the potential impacts of the Health Information Privacy Act. They highlight that the legislation could subject a broad array of New York businesses and nonprofits to complex new compliance obligations. These requirements may result in elevated costs across industries, which could ultimately challenge affordability for consumers.
Critics assert that if implemented without substantial amendments, the bill could diminish the competitive edge of New York businesses and create added financial burdens on consumers. Entrepreneurs believe that an influx of new regulations would hinder their ability to innovate and grow, which is essential for the state’s economic health.
Support for the Bill
On the other side of the debate, the New York chapter of the American Civil Liberties Union advocates for the bill, emphasizing the significance of allowing individuals to maintain control over their sensitive health information. They urge that the legislation is necessary to ensure New Yorkers can seek medical care and monitor their health securely, without worrying about unauthorized data sharing or exploitation.
Status of the Legislation
The New York Health Information Privacy Act is among a number of significant legislative measures awaiting Governor Hochul’s action before the end of the year. Should she not engage with the bills, they will expire without further consideration.
Key Features of the New York Health Information Privacy Act
| Feature | Description |
|---|---|
| Consent Requirement | Prohibits the sale of an individual’s regulated health information without their consent. |
| Third-Party Processing Restrictions | Imposes restrictions on the processing of health data by third-party companies. |
| Penalties for Violations | Establishes substantial fines for entities that violate the provisions of the act. |
| Scope of Application | Extends state protections for personal health information beyond federal HIPAA regulations. |
Conclusion
As New York grapples with the balance between individual privacy rights and economic vitality, the decision on the Health Information Privacy Act may have significant implications for both businesses and consumers. Entrepreneurial resilience and innovation are vital for New York’s economic growth, and ensuring that regulations do not unduly burden these elements will be essential for the ongoing success of local enterprises. Residents and community members are encouraged to stay informed and engaged in the legislative process that shapes the future of New York’s business environment.
Frequently Asked Questions (FAQ)
What is the New York Health Information Privacy Act?
The New York Health Information Privacy Act is a proposed legislation aimed at extending the state’s existing protections for personal health information beyond federal HIPAA regulations. It seeks to make it illegal to sell an individual’s regulated health information without their consent and impose restrictions on the processing of health data by third-party companies, with violators facing substantial fines.
Why are business groups urging Governor Hochul to veto the bill?
A coalition of New York business groups, including the Business Council of New York State, National Federation of Independent Business, and Retail Council of New York, is urging Governor Kathy Hochul to veto the New York Health Information Privacy Act. They describe the bill as “restrictive” and potentially harmful to consumers, claiming it would impose sweeping and economy-wide consequences, increasing costs for New Yorkers and disrupting essential services.
What are the concerns raised by the business coalition?
The coalition contends that the bill would subject a vast range of New York businesses and nonprofits to complex new obligations, potentially raising compliance costs across industries and creating new affordability challenges for consumers. They argue that without substantial amendments, the enactment of the bill could put New York businesses, nonprofits, and consumers at a significant disadvantage and further harm the state’s competitiveness and affordability.
Who supports the bill?
The New York chapter of the American Civil Liberties Union supports the bill, emphasizing the need for individuals to have control over their intimate health information collected through various tools and platforms. They urge the Governor to sign the bill into law to ensure that New Yorkers can receive care and monitor their health without fear of inappropriate data sharing or misuse.
What is the current status of the bill?
The data privacy bill is among several pieces of major legislation awaiting action by Governor Hochul before the end of the year, after which the bills would expire without action.
Now Happening on X
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- @econliberties (December 1, 2025): Companies are using algorithms to set individualized prices based on consumers’ personal data — and most don’t know it’s happening. Now, a New York law is changing this with retailers now required to disclose when they use these surveillance pricing tactics. View on X
- @presearchnews (December 1, 2025): New York state law has been crafted to aim for data collection and usage, as it now requires disclosure from businesses that use personal data to set different prices for the same good. Maybe New York residents should use Presearch! We do not collect your search data or sell it to 3rd parties! View on X
- @OwenGregorian (December 1, 2025): New York’s latest state budget includes new disclosure requirements for businesses that use personal data to set different prices for different shoppers — for example, charging you more if you have a history of searching for flights. View on X
- @MukulNeetika (December 2, 2025): New York became the first state to enact a law targeting personalized pricing or surveillance pricing, in which retailers use artificial intelligence and customers’ personal data to set prices online. The law aims to prevent retailers from ripping off consumers. View on X
- @bonybean (December 2, 2025): Discover how the new New York law sheds light on the role of your data in determining prices for essential goods like eggs and toilet paper. Retailers must disclose whether your data impacts pricing, but the specifics remain hidden. View on X
- @ChristinaAyiotis (December 2, 2025): The new law seeks to prevent retailers from ripping off consumers by using artificial intelligence and their personal data to charge them higher prices. View on X
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