National Internet companies fought the bill, signed by Gov. Jesse Ventura on Wednesday, and its authors described it as the most comprehensive state Internet privacy law. It won't take effect until March.
The law requires ISPs to tell Minnesota consumers whenever they plan to disclose such personal information as which Web sites users have visited, their e-mail or home addresses or their telephone numbers. They also would have to say what the information would be used for.
It requires that ISP contracts say in a "conspicuous" way whether their customers would have to take action to prevent the information-sharing once people are notified, or if the service provider would need permission to proceed.
The bill will let consumers sue businesses that violate the law, with exceptions for giving information to law enforcement.
Frank Torres, a spokesman for the Washington-based Consumers Union, said the law is a victory for privacy advocates and becomes their new minimum goal for national legislation.
"We hope that it sends a strong signal to Congress that it's got to act on Internet privacy, to ensure that consumers in all the states have the same level of protection," Torres said.
Any federal law would supersede the Minnesota law.
Stewart Baker, an attorney for the U.S. Internet Service Providers Association, moaned when he learned that Ventura had signed the bill. He warned that ISPs would have problems adapting to different laws in different states, and consumers would bear the cost.
"In general, I think you have to worry about how much regulation you can expect for $21.95 a month," he said.
The plan's sponsor, Sen. Steve Kelley, modeled the bill on state and federal laws that prevent video stores from disclosing what movies customers have rented.
A second part of the bill follows the lead of other states that have adopted rules to try to control unwanted e-mail. It would require companies sending unsolicited advertisements to include the letters "ADV" in the subject line of e-mails -- "ADV-Adult" for material of a sexual nature -- to make it easier to filter out.
Torres said the effectiveness of the Minnesota law depends on developing regulations that stress simplicity.
"If you're going online, and then this notice pops up, and they ask you to mail something in, it's not worthwhile," he said. "If you have to click through 15 pages, that's not helpful either."
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