To keep an eye on internet firms such as Google and Facebook White House has proposed a "bill of rights" that will give people greater control over the personal data collected about them. President Barack Obama said it was part of a broader plan to give Americans more control over how their personal data was used on the Internet. Though the bill does not impose any immediate new obligations on online companies.
"American consumers can't wait any longer for clear rules of the road that ensure their personal information is safe online," said Obama. "As the Internet evolves, consumer trust is essential for the continued growth of the digital economy. That's why an online privacy Bill of Rights is so important."
Internet giants like Google and Facebook have been accused of quietly tracking their customers' online activities and then using that data to generate advertising revenue.
Lawmakers have expressed an interest in cracking down on online tracking, but have done little to curtail the practice.
Internet companies have tried to get ahead of reforms by adopting privacy policies, but have still come under fire from Congress and consumer groups for not being upfront about how they use information on users' online activities.
Last week, Google acknowledged it had been circumventing the privacy settings of people using Apple Inc.'s Web-browsing software on their iPhones, iPads and computers. It stopped the practice after being contacted by The Wall Street Journal.
According to White House, based on the bill of rights, the U.S. Commerce Department will work with companies and privacy advocates to develop "enforceable" privacy policies.
While advertising networks associated with Internet firms including Google, Yahoo! and Microsoft have agreed to act on "Do Not Track" technology on web browsers that make it easier for consumers to control tracking.
But the problem is that the new do-not-track button isn't going to stop all Web tracking. The companies have agreed to stop using the data about people's Web browsing habits to customize ads, and have agreed not to use the data for employment, credit, health-care or insurance purposes. But the data can still be used for "market research" and "product development" and can still be obtained by law enforcement officers.
The do-not-track button also wouldn't block companies such as Facebook from tracking their members through "Like" buttons and other functions.
The do-not-track button has been hotly debated ever since the Federal Trade Commission called for its adoption about two years ago. Early last year Firefox browser was the first to add the do-not-track option . Microsoft's I.E. Web browser added it soon after, and Apple included it in the latest version of its operating system, Mountain Lion, which was released to developers this year.
But even people who clicked on the button were still being tracked because advertisers and tracking companies hadn't agreed to honor the system.
But because of this new announcement means they will work to begin adopting and honouring the system within nine months, according to the Digital Advertising Alliance.
Google is expected to enable do-not-track in its Chrome Web browser by the end of this year.
Susan Wojcicki, senior vice president of advertising at Google, said the company is pleased to join "a broad industry agreement to respect the 'Do Not Track' header in a consistent and meaningful way that offers users choice and clearly explained browser controls."
The planned privacy bill of rights consists of seven basic protections consumers should expect from companies.
Consumers would have control over the kind of data companies collect, companies must be transparent about data usage plans and respect the context in which it is provided and disclosed. Companies would have to ensure secure and responsible handling of the data and be accountable for strong privacy measures.
The bill of rights also calls for reasonable limits on the personal data that online companies can try to collect and retain and the ability of consumers to access and ensure the accuracy of their own data.
While companies can voluntarily choose whether to adopt these principles, those that do commit could face enforcement action for straying from the principles.
Federal Trade Commission Chairman Jon Leibowitz said a failure to meet privacy commitments once adopted could be a deceptive act or practice, warranting FTC fines or other action. Still, he expected companies to come on board as strong privacy protections encourage trust in Internet commerce.
On the otherhand, a group of state attorneys general have raised concerns with Google over the Internet giant's updated privacy policy, marking the latest public flare-up over the planned changes. In a letter addressed to Google Chief Executive Larry Page on Wednesday and signed by more than 30 attorneys general, the National Association of Attorneys General wrote that Google's new policy of consolidating privacy practices across products "is troubling for a number of reasons."
In a statement a Google spokesman said that, "Our updated Privacy Policy will make our privacy practices easier to understand, and it reflects our desire to create a seamless experience for our signed-in users."
source: The Wall Street Journal; Reuters; Engadget.
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