Department of Commerce calls for new online privacy rules

Monday, December 20, 2010

The U.S. Department of Commerce recently released an internet privacy policy paper, in which it called on the federal government to create a privacy bill of rights and code of conduct for companies that track web users and collect consumer data.

In the document, Secretary of Commerce Gary Locke noted the use of personal computers, mobile phones and other devices have changed the way information is used over the last two decades. However, with new devices, there are also new concerns about data privacy.

The report states the code of conduct should be voluntarily adopted by internet companies and enforceable by the Federal Trade Commission.

According to the report, the collection of personal information on the internet is essential in some cases. However, current commercial data practices may not meet certain privacy standards the consumer expects.

"There is evidence that consumers may lack adequate information about these practices to make informed choices. This misalignment can undermine consumer trust and inhibit the adoption of new services," the report states.

This comes on the heels of a recent report from the FTC endorsing an online tracking tool that would allow internet users to restrict advertisers from collecting personal information. According to the FTC, this do-not-track tool would improve online privacy.