Congress Introduces Online Privacy Bills
Vol. 807
April 14, 2011
Following
the urging of President Obama, members of both houses
of Congress have authored legislation requiring companies to protect online
customer data while also outlining new oversight responsibilities for the
Federal Trade Commission (FTC). Called the
Commercial Privacy Bill of Rights
Act, the measure would force companies to allow consumers to opt-out of having
their information sold or disclosed to a third-party for marketing purposes.
“This bill requires covered entities to provide consumers in clear and
easy-to-understand language what information is being collected and how the
information is being used,” said Representative Cliff Stearns (R-FL). “It also
provides incentives for covered entities to enter into strong self-regulatory
standards.”
If
the legislation is passed, companies would be unable to collect personal
information like e-mail addresses and credit card numbers without an
individual’s consent. The measure would also forbid the collection of even more
sensitive data about religion, sexual identity and health. State attorneys
general and the FTC would be responsible for enforcing the legislative
provisions. “Companies can keep your information for as long as they like or
sell it without even letting you know,” said Senator John Kerry (D-MA). “You
shouldn’t have to be a computer genius to opt-out of sharing.”
Both
of the bills introduced this week do not include the creation of a Do Not Track
list similar to the national Do Not Call list related to telemarketing.
Instead, the measures offer a FTC-approved five-year self-regulatory program
giving certified firms more flexibility in how they implement the bill’s
provisions, while others would need to follow the letter of the law.
The
legislation does have the support of major technology corporations like
Microsoft, HP, Intel, and eBay, but online marketing groups argue the measures
could undercut the growth of the information economy. According to the Direct
Marketing Association (DMA), the information economy will generate $1.931
trillion in the U.S. this year, supporting
more than 10 million jobs. “America does not need those
brakes applied to this vibrant sector of the economy,” said the DMA, in a
statement. |