FTC proposes serious privacy requirements for internet firms

[TayTay]

Wow! This will go nowhere fast, but it sure is interesting:
http://www.nytimes.com/2010/12/02/business/media/02privacy.html?_r=1&hp">NYTimes story

F.T.C. Backs Plan to Honor Privacy of Online Users

By EDWARD WYATT and TANZINA VEGA
Published: December 1, 2010

WASHINGTON — Signaling a sea change in the debate over Internet privacy, the government’s top consumer protection agency on Wednesday advocated a plan that would let consumers choose whether they want their Internet browsing and buying habits monitored.

Saying that online companies have failed to protect the privacy of Internet users, the Federal Trade Commission recommended a broad framework for commercial use of Web consumer data, including a simple and universal “do not track” mechanism that would essentially give consumers the type of control they gained over marketers with the national “do not call” registry.

Those measures, if widely used, could directly affect the billions of dollars in business done by online advertising companies and by technology giants like Google that collect highly focused information about consumers that can be used to deliver personalized advertising to them.

While the report is critical of many current industry practices, the commission will probably need the help of Congress to enact some of its recommendations. For now, the trade commission hopes to adopt an approach that it calls “privacy by design,” where companies are required to build protections into their everyday business practices.

[beachmom]

1. Interesting indeed. Although I agree with you that it is DOA in the House.

[karynnj]

2. Agree nothing will happen fast, but Kerry introduced related legislation

“The Federal Trade Commission’s report should be a wakeup call for every Internet user in this country. The report confirms that many companies – both online and offline – don’t do enough to protect consumer privacy. Today’s technology makes it easy for companies to obtain, collect, store, and transfer unprecedented amounts of information, but industry self regulation has proven inadequate to protect consumers. The report presents a thoughtful prescription for common practices that all firms should adopt and provides an important confirmation of the conclusions I’ve reached over the past few months while drafting privacy legislation.

“During the process of drafting legislation, I’ve concluded that consumers should have three nonnegotiable rights. First, all firms must put procedures in place to secure personally identifiable information. Second, consumers have a right to know in clear and concise terms what firms intend to collect, why, and how it will be used. Third, consumers should be given a simple mechanism for opting out of the process.

“Information collection is now a routine part of commerce, but proper stewardship of information is as important as how it is collected. Firms should have to notify consumers when privacy policies change and allow consumers to have their information anonymized if the company goes bankrupt or they want to terminate the relationship. Companies should make an effort to minimize the data collected, ensure it is protected while being transferred, and ensure continued accuracy of information throughout the process.

"The report also makes clear that properly protected information and respect for consumer trust can be good for both business and consumers. In that spirit, I propose that we allow for FTC approved safe harbor programs in which organizations and groups can establish procedures to enact the requirements that I’ve laid out and the report outlines. And while all firms should execute all of the principles, we can take a hybrid approach to enforcement where the most critical rights are protected through rulemaking while others may be subject to a complaint and adjudication process. Those actors participating in safe harbor programs would be subject to FTC oversight and penalties, but because of their voluntary participation and commitment to high standards, they would be free from a private right of action and the complaint and adjudication process.”

http://politicalnews.me/?id=6953&keys=Senator-John-Kerry-OnlinePrivacy

And the Obama administration has put Cam Kerry as the head of their task force on privacy.

The United States is not known as a world leader in protecting privacy rights. But the sleeping giant has been awakened, and that may mean new federal policy governing citizens' right to privacy online.

Ahead of major reports on Web privacy from the Federal Trade Commission and the Commerce Department, the Obama Administration announced a White House task force on privacy headed by Cameron Kerry, Sen. John Kerry's brother.

Obama will also soon announce the appointment of a privacy czar, who will be tasked with ushering in legislative changes.

http://www.neontommy.com/news/2010/11/obama-administration-finally-acting-web-privacy

So, there are two Kerrys pushing for these things. I am less pessimistic remembering a long ago hearing on collecting information in the Commerce Committee, where Kerry came in late because of another hearing and through his questioning got many - on both sides of the aisle - alarmed by the degree the data collected defines a person. Many were extremely uncomfortable. Though different, the idea that companies know all the sites you visit and can make inferences about you is pretty creepy.

Oddly, this might be a case where there is common ground with the very libertarian tea party guys.

[karynnj]

3. Both the House and Senate have been working on this - in multiple efforts

The FTC's suggestion for a do-not-track mechanism could be mandated by legislation. In the House, Rep. Bobby Rush of Illinois, current chair of the Commerce and Trade Subcommittee, introduced a privacy bill in July. Meanwhile, Massachusetts Senator John Kerry announced he has been drafting privacy legislation in recent months.

"During the process of drafting legislation, I've concluded that consumers should have three nonnegotiable rights. First, all firms must put procedures in place to secure personally identifiable information. Second, consumers have a right to know in clear and concise terms what firms intend to collect, why, and how it will be used. Third, consumers should be given a simple mechanism for opting out of the process," stated Kerry in a press release.

In addition, a third Democrat, Rep. Edward Markey of Massachusetts, announced today his intentions to propose legislation featuring a do-not-track requirement specifically to protect children's privacy.