House Panel Discusses President’s Privacy Proposal

The House Commerce Subcommittee on Commerce, Manufacturing, and Trade, chaired by Rep. Mary Bono Mack (R-CA), held a hearing to discuss President Barack Obama’s new privacy proposal and to consider whether it strikes the right balance between protecting privacy and preserving Internet growth.

Last month, the White House released its privacy framework proposing a consumer privacy “bill of rights” and enforceable industry codes of conduct. Similarly, this week the Federal Trade Commission released its final privacy report, which includes a list of best privacy practices for data collection and user companies and recommends Congress take legislative action. Members of the subcommittee questioned Federal Trade Commission Chairman Jon Leibowitz and Assistant Secretary of Commerce for Communication and Information Lawrence Strickling about these proposals and the Administration’s views on Internet privacy. Industry stakeholders also testified today to give their views on the administration’s privacy plan.

Although the lawmakers seemed to agree on the importance of consumer protections online, many remain skeptical of the need for legislation and government regulation. They have concerns that recommended mandates could stifle innovation and limit job growth. “I am highly skeptical of Congress’ or a government regulator’s ability to keep up with the innovative and vibrant pace of the Internet without breaking it. Consumers and the economy as a whole will not be well served by government attempts to wrap the web in red tape. And we cannot ignore that Internet companies have a strong incentive to protect their users – it’s called consumer choice,” said House Commerce Committee Chairman Fred Upton (R-MI).

“Before we do any possible harm to the Internet, we need to understand what harm is actually being done to consumers. Where is the public outcry for legislation? Today, I’m simply not hearing it. I haven’t gotten a single letter from anyone back home urging me to pass a privacy bill. That may change – and it probably will – if industry doesn’t come up with better safeguards for consumers in the future. But right now, we should resist the urge to ‘rush to judgment’ because we feel a compelling need to do something – even if we’re not exactly sure what that should be,” said Chairman Bono Mack.