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By Rob Garretson
The U.S. Commerce Department recently called for the
establishment of a "privacy bill of rights" that would require
Internet businesses to develop a set of practices to protect consumer data as
well as the creation of a new government office to oversee data privacy
protections.
The proposal was contained in an 88-page report aimed at easing growing concerns about vast
quantities of personally identifiable information (PII) that companies gather
on consumers from Web browsers, location-based services, social networks and
the like. The report, titled "Commercial Data Privacy and Innovation in
the Internet Economy: A Dynamic Policy Framework,” comes amid growing interest
from lawmakers in safeguarding consumer privacy. The U.S. House has passed a
bill called the Data Accountability and Trust Act, which is awaits action in
the Senate and would require nearly all businesses to take steps to protect PII
and to publicly disclose any breaches of that data. Such a federal law would
preemp laws currently on the books in 46 states and standardizing data
protection requirements nationwide.
The Commerce Department recommendation, drafted by the
Commerce Department’s special Internet Policy Task Force, comes two weeks after
the Federal Trade Commission (FTC) called for creation of a "Do Not
Track" tool that would let consumers stop or restrict advertisers from
capturing data on their online activity, a common practice that helps
advertisers target ads. It is intended to guide lawmakers and the industry, as
well as a White House task force exploring the issues related to Internet
privacy.
The FTC report didn't specifically endorse any legislation,
but raised the possibility if the industry doesn't act voluntarily. The report
stressed the need for businesses to work cooperatively with government to
protect consumer information online, yet noting that "in certain
circumstances, we recognize more than self-regulation is needed."
Thursday’s Commerce Department recommendation also envisions
voluntary “codes of conduct” for particular types of companies, such as social
networks; mobile location-based services; and Internet marketers that target
ads based on Web users’ online behavior. Yet these codes could be enforced by
the FTC on companies that agree to abide by them but don't comply.
The Commerce Department proposal is intended to ensure that
companies give consumers clear notice about what personal data businesses are
collecting and that businesses disclose specifics on how they are using it. Companies
doing business on the Internet would be required to give consumers the opportunity
to opt out of some or all of that data collection and to correct errors in the
information gathered. It would also set limits on the use of such information
and establish data security standards.
Congress would have to enact legislation, like the Data
Accountability and Trust Act, for these requirements to become law. Senate
Commerce Committee Chairman John D. Rockefeller, D-W.Va., Thursday told the
Associated Press that he supports such legislation.
“America needs a
robust privacy framework that preserves consumer trust in the evolving Internet
economy while ensuring the Web remains a platform for innovation, jobs, and
economic growth. Self-regulation without stronger enforcement is not
enough," said Commerce Secretary Gary Locke in a statement. "Consumers
must trust the Internet in order for businesses to succeed online.”
A key component of the proposal is the creation of a Privacy
Policy Office within the Commerce Department. The office would examine the
commercial use of personal data to determine if there are gaps in privacy
protections. If such gaps are identified, the office would work with companies,
interest groups and others to develop related “codes of conduct” that could be enforced
by regulators.
"We
hope we can get people to the table for broader adoption of these enforceable
codes of conduct, but we recognize we have no authority to
compel participation or compliance," Daniel Weitzner, associate
administrator for policy at Commerce's National Telecommunications and
Information Administration told the Los Angeles Times.
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