Kerry Privacy Bill Could Impose 'Major' Obligations On Ad Networks

A draft of privacy legislation floated by Sens John Kerry (D-MA) and John McCain (R-AZ) would give the Federal Trade Commission authority to craft privacy regulations and to operate a Web site where consumers can opt out of online behavioral targeting.

The potential measure would generally require companies to notify consumers about the collection of their data, and also allow them to opt out of having data used by third parties, like ad networks. In addition to the obligation to notify consumers about data collection and allow opt-outs, the bill would require companies to give consumers access to data about them. Further, most companies that collect data would be required to attempt to minimize the amount of information collected and retained. The bill would apply to a broad swath of data about consumers, including not only names and phone numbers but also email addresses, if they include names, customer numbers held in cookies and unique device identifiers. In its current form, the bill requires companies to obtain users' explicit opt-in consent before collecting "sensitive" data, defined expansively as personal information that "if lost, compromised, or disclosed without authorization could result in harm to an individual."