The Obama administration on Wednesday gave its seal of approval to a "consumer privacy bill of rights" intended to allow consumers to avoid unwanted online tracking or data collection.
A bill of rights is "something that consumers want, companies need, and the economy will appreciate," Lawrence Strickling, assistant secretary of Commerce for communications and information, told the Senate Commerce Committee Wednesday.
The "administration urges Congress to enact" a bill that is "broad and flexible enough to allow consumer privacy protection and business practices to adapt as new technologies and services emerge," Strickling said.
Such a bill has not yet been introduced but committee chairman John Rockefeller and committee member Sen. John Kerry, both Democrats, pledged to move forward on legislation soon.
"I am encouraged by a growing consensus among stakeholders—business and consumer advocates alike—that basic privacy rules are necessary," Rockefeller said in a statement. "I look forward to working with my colleagues on legislation that protects consumers from unwarranted intrusions on their personal privacy while preserving the ability of online companies to prosper in a competitive global marketplace. Protecting consumer privacy does not have to be a zero-sum game."
"There is no general law of commerce to govern that surveillance. I intend to propose one – a Commercial Privacy Bill of Rights," Kerry said. "The purpose of the legislation I will present is not to discourage information sharing, but to encourage it – but under a common code of conduct that respects the rights of both the people sharing their information and legitimate organizations collecting and using it on fair terms and conditions."
Congress has been discussing privacy legislation for ages, but the issues picked up steam recently after the Federal Trade Commission unveiled an online privacy proposal that encouraged browser makers to implement a "do not track" option that would let users opt-out of having ad networks and other sites track their online activity.
Since the release of that report, Microsoft, Google, and Mozilla have all unveiled different "do not track" options for their browsers, something that FTC Chairman Jon Leibowitz said Wednesday was an important first step.
"These recent industry efforts to improve consumer control are promising, but they are still in the embryonic stage, and their effectiveness remains to be seen," Leibowitz said.
Leibowitz had several suggestions for an effective "do not track" implementation: the system should be implemented universally so consumers don't have to opt-out on a variety of different sites; the opt-out mechanism should be easy to find; opt-out choices should be permanent; and rules should be enforceable.
Earlier this week, the FTC reached a settlement with online ad network Chitika over charges that the company engaged in deceptive practices when it came to tracking consumers' behavior online. Chitika provided had an opt-out mechanism, but the company secretly started tracking people again after 10 days.
In the House, Rep. Jackie Speier, a Democrat, introduced the Do Not Track Me Online Act of 2011 last month, which would give the FTC 18 months to come up with standards for companies to follow when it comes to online tracking.