Antitrust Law Daily Wrap Up, PRIVACY NEWS: Senators Rockefeller, Blumenthal Propose “Do Not Track” Online Legislation, (Mar 1, 2013)

By Ted Gotsch, TR Daily

Two Senate Democrats have unveiled legislation that would give consumers more control over the use of their personal information and allow them to prevent online companies from collecting and using their data for the companies’ financial gain.

Senate Commerce, Science, and Transportation Committee Chairman John D. Rockefeller IV (D., W.Va.) and Sen. Richard Blumenthal (D., Conn.) proposed the “Do-Not-Track Online Act of 2013,” which would allow consumers to indicate their preference not to have their online activities tracked and, with limited exceptions, would prohibit online providers from collecting personal information from those indicating such a preference.

“Online companies are collecting massive amounts of information, often without consumer’s knowledge or consent,” Chairman Rockefeller said. “Consumers should be empowered to make their own decision about whether their information can be tracked and used online.”

The bill would require the Federal Trade Commission to establish (1) standards for the implementation of a “Do-Not-Track” mechanism for individuals to indicate a preference that information not be collected by providers of online services and (2) rules prohibiting providers from collecting personal information from those who have express such a preference.

When consumers ask not to be tracked, online providers would be allowed to collect only the information that is necessary for the website or online service to function and be effective. Once the information is no longer needed, the provider would be obligated to destroy or “anonymize” it.

The proposal would establish a dual enforcement regime, whereby both the FTC and the state attorneys general could bring actions for civil penalties against violators and for equitable remedies in favor of consumers. State attorneys general would be required to notify the FTC prior to bringing enforcement actions.

A section-by-section summary of the measure was issued along with the bill text.

Consumer Watchdog, a non-profit, progressive organization, applauded the bill. “It’s now clear that Rockefeller’s action is necessary to ensure consumers get the protection they deserve and expect,” said John M. Simpson, director of the group’s Privacy Project. “Self-regulatory efforts to develop a Do-Not-Track standard have stalled.”

“Rockefeller’s bill may spark action in such forums as the World Wide Web Consortium (W3C), but at the end of the day, we’ll need legislation to get this done,” he remarked. “Industry has had no real incentive to agree to a meaningful standard.”

News: Privacy