The New Law on Geofencing
New York has recently passed a new provision in its state budget that prohibits advertisers from geofencing healthcare facilities. This law, which was passed in May, has made it increasingly difficult for advertisers who want to use location or healthcare data to maintain performance while still abiding by the law.
Under this new law, corporations are prohibited from creating a geofence within 1,850 feet of hospitals in New York state to deliver an advertisement, build consumer profiles, or infer health status. This means that advertisers can no longer target ads based on the location of potential customers near healthcare facilities.
Implications for Advertisers
The implications of this law are far-reaching, particularly because of how densely packed New York City is. Theoretically, an advertiser could geofence around another business that is proximate to a health care facility and still fall within the law’s prohibited radius, even if the advertiser had no interest in healthcare.
The law defines healthcare facilities as any governmental or private entity providing medical care or services, which could encompass many establishments on a New York City block.
This means that many businesses could potentially fall within the prohibited radius, making it difficult for advertisers to target their ads effectively.
The Future of Advertising and Healthcare Data
This legislation comes at a time when the federal government is also scrutinizing how businesses use healthcare data for advertising. As privacy concerns continue to grow, we can expect more regulations like this in the future.
Advertisers will need to adapt their strategies and find new ways to reach their target audience without infringing on privacy laws.
New York's ban on geofencing near health care facilities is a significant development in the advertising industry. It highlights the increasing importance of privacy and the need for advertisers to adapt their strategies accordingly.
As we move forward, it will be interesting to see how this law impacts advertising strategies and whether other states will follow suit.
