Commentary

Senate Democrats Urge FCC To Ban 'Pay-For-Privacy' Schemes

Some influential Democratic senators, including Bernie Sanders of Vermont and Massachusetts' Elizabeth Warren, are urging the Federal Communications Commission to issue tough broadband privacy rules.

"Every click a consumer makes online paints a detailed picture of their personal and professional lives, and this sensitive information should be protected by strong privacy standards," the lawmakers say in a letter to the FCC. The letter was also signed by Sens. Ed Markey (Massachusetts), Al Franken (Minnesota), Richard Blumenthal (Connecticut), Patrick Leahy (Vermont) and Tammy Baldwin (Wisconsin).

The lawmakers go on to endorse FCC Chairman Tom Wheeler's proposed rules, which would prohibit broadband providers from using information about consumers' Web activity for ad targeting without their explicit consent.

Many privacy advocates support the proposed rules, while Internet service providers and ad organizations oppose them.

Sanders and the other signatories also ask the FCC to prevent providers from charging higher fees to people who don't want their Web-surfing activity used for ad purposes. "Not only is a pay-for-privacy standard counter to our nation's core principle that all Americans have a fundamental right to privacy, but it also may disproportionately harm low-income customers, the elderly, and other vulnerable populations," they write.

The lawmakers don't mention any companies by name, but it's no secret that AT&T now charges some customers in Austin and Kansas City higher fees to avoid online behavioral advertising. When AT&T rolled out its 1-GB fiber network in Kansas City last year, the company tied monthly subscription fees to online tracking.

People who accept AT&T's ad targeting -- which the company calls the “Internet Preferences” program -- can purchase 1-GB service for $70 a month. People who don't want to participate in Internet Preferences will be charged $99 a month for the same 1-GB service. (After adding taxes and fees, the price difference reportedly ranges from $42 to $66.)

The company uses a similar pricing model in Austin, where it has operated a high-speed U-verse network since late 2013.

Not all lawmakers support the potential rules. Sen. John Thune (R-South Dakota), chairman of the Commerce Committee, today characterized the FCC's proposal as a "power grab over privacy regulations."

He plans to hold a hearing next Tuesday about the possible rules.

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