Eshoo Urges Restraint on Mobile App Regulation

"Transparency is a critical element of this discussion,” said Eshoo. “Consumers should know what information is being recorded, how it is being used and who has access to that data.” “The mobile apps market has experienced stunning growth,” Eshoo said, citing a recent Center for Democracy and Technology study that estimates app development companies will create 600,000 jobs in the next three years. “But the growth of these third party-developed apps brings the responsibility to protect the privacy of users,” said Eshoo, whose California district includes Silicon Valley.

"We have basic reasons to be concerned about privacy,” said Leahy. “There are things we would never think about giving up in a non-electronic world [that] we shouldn’t think about giving up the electronic world.” Leahy touted the privacy provision of his recently introduced Electronic Communications Privacy Amendment Act of 2011 as a way to address consumers’ privacy concerns. If law enforcement authorities “wanted to go into your house and find what is in your filing cabinet they would have to get a search warrant. They ought to have the same requirement to access information on you phone.”

Lawmakers should apply a “light touch” to any mobile application legislation so as not to hinder the valuable economic and social benefits that apps have, said Jason Hong, an associate professor at Carnegie Mellon University. “Legislation could block a whole lot of applications that could really be helpful,” such as influenza pattern tracking via Google searches, he said. “I'm worried about killing the golden goose before it has matured.”

A big sticking point in the mobile privacy problem is there aren’t enough privacy tools for children and teens, panelists said. “We don’t have enough tools for kids,” said Alan Simpson, vice president of policy at Common Sense Media. Proposed tools like an opt-out eraser button that removes user information from the Web is an attractive option for Internet companies, Simpson said. “It’s the ability to say that I'm done with a social networking site.” Other panelists agreed with the benefits of an Internet eraser button, but said implementing one is more difficult than it sounds. “How do we actually go about doing this if it’s a good idea?” asked Adam Thierer, senior research fellow at George Mason University. “What are the confines of this eraser button notion?”

There are downsides to Children’s Online Privacy Protection Act (COPPA) rules, panelists said, and lawmakers should seek alternative tools to protect the privacy of children online. “Guess what, there are kids under 13 on Facebook,” said Thierer. Thierer cited a recent Consumer Reports survey that said there are more than 7 million children under the age of 13 on Facebook, despite Facebook’s efforts to restrict the demographic. “Love it or hate it, COPPA is creating a “generation of liars,” said Thierer. “We need to figure out what can be done to create a less risky environment online,” said Jules Polonetsky, co-chair and director of the Future of Privacy Forum.

Another issue is the inherent difficulty of verifying children online without increasing their vulnerability. “There has to be a discussion on how you have an age segmentation online,” said Thierer, “especially because there is such an extra sensitivity to children and teens.” Simpson said he was skeptical that legislation by Reps. Edward Markey, D-Mass., and Joe Barton, R-Texas -- the Do Not Track Kids Act of 2011 -- has enough support to pass Congress this session.