Consumer Groups Hail Rockefeller’s Privacy Bill

"Recent reports of privacy invasions have made it imperative that we do more to put consumers in the driver’s seat when it comes to their personal information,” Rockefeller said. “I believe consumers have a right to decide whether their information can be collected and used online. This bill offers a simple, straightforward way for people to stop companies from tracking their movements online."

The FTC plays a prominent role in the provisions of Rockefeller’s bill and is tasked with developing standards and implementing a Do-Not-Track mechanism, according to the text. The FTC would also be asked to create rules that prohibit providers from collecting personal information from those who do not want to be tracked. The FTC and state attorneys would be authorized to enforce the provisions of the bill and seek civil penalties when necessary.

Online service providers can still collect personal information under two conditions under the bill: First, if tracking is necessary to provide a requested service and is then anonymized or deleted after the service is provided; or if the provider gives individuals clear notice of the information being collected and the individual “affirmatively consents” to the use of the data. The act would be subject to Congressional review two years following its enactment in order to assess its effectiveness and its effect on online commerce.

Lawmakers have loudly criticized online companies and mobile device manufacturers in recent months for their privacy policies. Apple and Google will both testify Tuesday at a Senate hearing at 10 a.m. in room 226 of the Dirksen Senate Office Building. Sen. Al Franken, D-Minn., will chair the hearing.

Apple does not track users’ locations, the company said in a letter to House Commerce Committee Republicans, posted by the committee Monday. “Apple has never done so and has no plans to ever do so,” the company said. Apple does collect some anonymous data, which it uses to help locate Wi-Fi hotspots and cell towers as part of its “crowd-source” database, but this “does not reveal personal information about any customer,” the company said.

Nokia said it collects similar data on Wi-Fi hotspot locations and cell towers. “Nokia does not collect positioning data to create histories of customers’ locations or to track individual consumers,” the company said. “We take the privacy of our customers and their data very seriously and we are committed to comply with applicable data protection and privacy laws, where ever we operate around the world.” Some location data is also used by Nokia to provide better information to users of Drive navigation, which is part of its Ovi Maps service, Nokia said.

Google, Microsoft, Research in Motion and HP also received letters from the Republican leaders of the committee April 25 asking them how location data is tracked, used, stored, or shared by mobile device operating systems. Their responses were not posted by our deadline.

Rockefeller’s bill would give individuals the “the right, and the right tools,” to browse the Internet without being tracked, said the Consumer Federation of America. The group was also pleased with the “common sense” tracking exceptions the bill offers to online service providers. “This legislation would enable the FTC to strike the right balance and ensure that privacy is respected and protected,” said Susan Grant, CFA director of consumer protection.

Consumer Reports praised the “simple and easy” way the bill allows Internet users to prevent online tracking. “Browser companies such as Mozilla and Apple have already begun to incorporate Do-Not-Track options into their browsers, but online service providers are under no obligation to recognize or respect these browser tools,” said Ioana Rusu, regulatory counsel for Consumers Union, publisher of Consumer Reports. “This bill will put regulatory support behind these industry initiatives and make sure that online providers listen to the many consumers who want to clearly say ‘No’ to online tracking.”

Consumer Action was pleased with the authority the legislation would give to the FTC and state attorneys general, as well as the proposed limit on data retention. Other consumer groups backing the bill included the American Civil Liberties Union, Electronic Frontier Foundation, Privacy Rights Clearinghouse, Consumer Watchdog, and the Center for Digital Democracy.