White House preps expansive online privacy bill

Apparently, the White House is preparing to send a sweeping online privacy proposal to Congress that would restrict how companies like Google and Facebook handle consumer data while greatly expanding the power of the Federal Trade Commission to police abuses -- ideas that are likely to incite strong opposition in Congress.

The forthcoming measure -- slated for release in February -- would require large Internet companies, online advertisers, mobile app makers and others to ask permission from consumers before collecting and sharing their most sensitive personal information, according to three sources briefed by administration officials. Companies that collect data for one purpose would in some cases need to get user sign-off before deploying it in a markedly different way, the sources said. The draft bill would also enhance the enforcement authority of the FTC, which has become Washington’s de facto privacy cop. Among the proposed changes, the Obama administration wants to give the agency its long-sought ability to fine companies for online privacy missteps, according to the sources. And the measure would strengthen government oversight of data brokers, firms that siphon up and sell vast amounts of consumer information, often behind the scenes.