Digital Privacy Bill Proposed in the Senate

A piece of legislation designed to keep consumer information private in online transactions was proposed in the Senate this week by John McCain (R-Ariz.) and John Kerry (D-Mass.). Unveiled Tuesday, the Commercial Privacy Bill of Rights addresses many issues of consumer privacy that the Obama administration has pushed for.

In its current form, the proposed legislation would:

Grant consumers wider rights to govern the use of their online information. While the bill does not include a “Do Not Track” provision, as some consumer advocates apparently hoped, it does offer consumers wider rights than currently exist to determine how their digital information can be transmitted and used.
Tighten information sharing regulations for companies. If passed into law, the bill would require companies to provide consumers with the explicit chance to opt in to information sharing. In other words, consumers would have to explicitly give companies the right to sell or share their credit and/or contact information.
Introduce options for relationship termination. Another provision of the proposed bill is that consumers would have the ability to remove their information from the databases of any companies with which they no longer wish to conduct business.
Require companies to explain their policies. Besides disclosing how they plan to use a customer’s information, companies that collect digital data would be required to give customers the opportunity to modify or update information as needed.

What’s at Stake with Online Information?

Right now, no law grants consumers the right to govern how their information is used or shared online, which reportedly concerns many consumer advocates and digital privacy experts. Why? Because, it seems, the more often a company shares or sells any piece of personal data, the greater the risk level for identity theft (which can lead to serious financial turmoil and even personal bankruptcy).

At this stage, the proposed bill has won support from both digital companies and some consumer advocates (though many seem to be pushing for tighter restrictions). If the law passes, digital companies could also expect certain benefits, including:

Protection from private lawsuits regarding the new restrictions;
Protection from state attorneys general should the Federal Trade Commission choose to handle a violation;
Benefits of “safe harbor” programs, which would allow companies to self-regulate in exchange for the relaxation of certain requirements.

Take Action to Protect Yourself Now

So what should consumers do in the meantime (that is, between now and whenever a digital privacy bill actually passes into law)? Taking the precautions outlined at OnguardOnline.gov can go a long way to keeping your identity and your money safe.

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