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A New York assemblyman has drafted a bill to limit the gathering of online user information for advertising purposes, reports The New York Times.

Assemblyman Richard L. Brodsky's bill would levy fines against companies like Google, Yahoo and others that collect personal data for targeted ads without user permission. If it passes, firms will be obligated to give users the ability to opt out of having data collected. Violations are punishable by fines.

The bill would generate repercussions beyond New York because it is difficult to terrace online executions strictly for one state. Other states may also follow suit.

Microsoft and Yahoo have met with Brodsky regarding the bill. Microsoft requested it include more regulation of Google's operations. Yahoo is against any such legislation. (Perhaps one more reason why a Yahoo/Microsoft wedding would only end in pain.)

If passed, Brodsky's bill — and similar legislation in other states — could impact the dollars flowing into the online ad industry. Much of that money goes to ad formats that are increasingly dependent on tracking user behavior.

Behavioral advertising is currently also taking blows in the UK.