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Congress Urged To Enact Consumer Privacy Guarantees

Concerns raised about behavioral tracking

By James Limbach
ConsumerAffairs.com

September 8, 2009

"Developments in the digital age urgently require the application of Fair Information Practices to new business practices," the groups said. "Today, electronic information from consumers is collected, compiled, and sold; all done without reasonable safeguards."

The groups noted that for the past four decades the foundation of U.S. privacy policies has been based on Fair Information Practices: collection limitation, data quality, purpose specification, use limitation, security safeguards, openness, individual participation, and accountability. They called on Congress to apply those principles in legislation to protect consumer information and privacy.

Behavioral advertising, where a user's online activity is tracked so that ads can be served based on the user's behavior, was cited as a particular concern: "Tracking people's every move online is an invasion of privacy. Online behavioral tracking is even more distressing when consumers aren't aware who is tracking them, that it's happening, or how the information will be used. Often consumers are not asked for their consent and have no meaningful control over the collection and use of their information, often by third parties with which they have no relationships."

"The rise of behavioral tracking has made it possible for consumer information to be almost invisibly tracked, complied and potentially misused on or offline. It's critical that government enact strong privacy regulations whose protections will remain with consumers as they interact on their home computer, cell phones, PDAs or even at the store down the street. Clear rules will help consumers understand how their information is used, obtained and tracked," said Amina Fazlullah of U.S. Public Interest Research Group. "In the event of abuse of consumer information, this legislation could provide consumers a clear pathway for assistance from government agencies or redress in the courts."

The coalition outlined its concerns and recommended principles for consumer information privacy legislation in letters sent to the House Energy and Commerce Committee, its Subcommittee on Commerce, Trade and Consumer Protection and Subcommittee on Communications, Technology and the Internet.

"Consumers must have their privacy protected as they conduct business and personal matters online," explained Jeff Chester, executive director of the Center for Digital Democracy. "Ensuring that our financial, health, and household transactions have adequate safeguards must be a top Congressional priority."

Chairman Rick Boucher (D-Va.) has indicated that the Subcommittee on Communications, Technology and the Internet will consider consumer privacy legislation this fall. Hearings were held this summer.

So far the online industry has argued that self-regulation provides adequate consumer protection. The coalition said formal regulation is necessary.

"The record is clear: industry self-regulation doesn't work," said Beth Givens, Director of the Privacy Rights Clearinghouse "It is time for Congress to step in and codify the principles into law."

The Interactive Advertising Bureau (IAB), which represents more than 375 leading media and technology companies responsible for selling most of the online advertising in the U.S, disagrees. Mike Zaneis, vice president of Public Policy, tells ConsumerAffairs.com that IAB "is serious about consumer privacy" and has "a plan to make sure we continue to live up to those obligations."

He says the industry no longer believes in providing the notice, the information for consumers about what happened on the web site buried deep inside a legal privacy policy. Thus, he says, the industry has "committed to pulling the notice out of the privacy policy, to providing it in plain English so that consumers can understand it."

Among the main points that the coalition said should be included in consumer privacy legislation:

• Sensitive information should not be collected or used for behavioral tracking or targeting.

• No behavioral data should be collected or used from anyone under age 18 to the extent that age can be inferred.

• Web sites and ad networks shouldn't be able to collect or use behavioral data for more than 24 hours without getting the individual's affirmative consent.

• Behavioral data shouldn't be used to unfairly discriminate against people or in any way that would affect an individual's credit, education, employment, insurance, or access to government benefits.

Other members of the coalition are the Consumer Federation of America, Consumers Union, Consumer Watchdog (formerly The Foundation for Taxpayer and Consumer Rights), the Electronic Frontier Foundation, Privacy Lives, Privacy Times and the World Privacy Forum.

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