Commentary

Lawmaker To FCC: Strong Broadband Privacy Rules Are 'Important Step Forward'

The top Democrat on the House Energy and Commerce Committee is calling for the Federal Communications Commission to forge ahead with "strong" broadband privacy rules.

"When it comes to the Internet, the importance of privacy may be the one thing nearly all Americans agree on," Rep. Frank Pallone (D-New Jersey) wrote today in an op-ed on Huffington Post.

Pallone goes on to say that FCC Chairman Tom Wheeler's original proposal for privacy rules was "an important step forward."

Wheeler's original proposal would require broadband providers to obtain subscribers' opt-in consent before using data about their Web browsing activity for ad targeting.

Those rules would apply to broadband providers, but not the so-called "edge providers" like Google, Facebook, Netflix and ad networks. This distinction stems from the fact that the FCC has no authority to impose privacy obligations on companies that aren't common carriers.

The broadband industry (and other critics) say those rules will cause confusion by imposing privacy standards on ISPs, but not on other companies that are in a position to collect data online.

Pallone dismisses that argument. "Weakening consumer protection is not the way to alleviate confusion," he writes. "The optimal solution would be to adopt strong privacy rules for both ISPs and websites, but unfortunately, this is easier said than done. Today, the FCC can adopt rules of the road to protect people’s privacy only when it comes to ISPs."

Pallone's op-ed comes as broadband providers, ad industry groups and some Web companies -- including Google -- are urging the FCC to craft rules that distinguish between "sensitive" and "non-sensitive" information. Currently, many ad networks, Web site operators and other "edge providers" only obtain people's consent before using data the ad industry considers sensitive -- like precise geolocation data -- for behavioral targeting.

While the FCC hasn't officially unveiled a new proposal, the agency appears to be readying a plan to require ISPs to treat sensitive and non-sensitive data differently. Wheeler suggested at a recent Senate hearing that the agency revise its proposal. While he didn't elaborate on how the rules may evolve, he told lawmakers that the input of a different agency -- the Federal Trade Commission -- was "particularly helpful." Staff at the FTC recommended earlier this year that Internet service providers should obtain opt-in consent before using "sensitive" data for ad targeting, and allow consumers to opt out of the use of "non-sensitive" information.

But that FTC report took a relatively expansive view of "sensitive" information. Specifically, the agency argued that broadband providers should obtain consumers' opt-in consent before using any "content" of communications for ad targeting. The agency defined content broadly, saying it includes data like search queries, email messages, social media posts, and titles of books read or movies viewed.

The FCC is expected to issue a revised privacy proposal soon, and could vote on the regulations as early as this month.

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