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Regulators, Congress, White House and Businesses Prep for Privacy Showdown

by Terrence O'Brien on November 10, 2010 at 12:50 PM

federal trade commission building
The Federal Trade Commission (FTC) and the Department of Commerce are both preparing reports on online privacy that could lead to a showdown between the two agencies, the Obama administration, Internet companies and Congress. According to the New York Times, the Commerce Department favors a more business-friendly modification to current privacy regulations, building upon the current system of user agreements and publicly posted privacy policies. The FTC on the other hand -- along with Congress and privacy advocates -- is likely to push more restrictive policies modeled on 'do not call' registries. This stricter model would require sites or browsers to have a 'do not track' option, which would keep user data from being indexed for use in targeted ads and other shiftiness.

Now, the Obama administration is apparently setting itself up to get caught in the crossfire. The White House has created its own panel to modernize regulations protecting consumers -- but it also wants to allow U.S. companies to continue competing on an international level, as well as ensure that the restrictions don't hamper law enforcement or national security efforts. Congress may jump on the issue soon, though. The practices of data-mining and tracking user behavior have drawn bipartisan attention, especially since the high-profile failures made by companies like Facebook and Google in their efforts to protect consumer privacy.

Ultimately, the debate may be controlled by whichever agency gets its report out first, as whoever controls the conversation will likely determine the final shape of the new regulations. There are, however, some significant challenges facing both sides. The Commerce Department's more business-friendly take may be out of step with emerging international standards, but a 'do not track' list would also be difficult to implement. Even if the technological hurdles are overcome, it's entirely possible that the anti-tracking tools would be outdated within just a few years, or even months.

Tags: CommerceDepartment, ftc, government, politics, privacy, top, web

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