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FTC Crackdown on Tracking

March 27, 2012
[ by Melanie Gretchen ] The Federal Trade Commission appealed to Internet companies this week to adopt a "Do Not Track" system toward giving consumers more control over their personal data online, and asked Congress to pass privacy legislation.  In its 57-page final report on privacy recommendations, the FTC called for voluntary steps,  similar to the agency's December 2010 preliminary report. The Power of the FTC. While the agency does not have the power to write rules, it can bring enforcement actions against companies that violate their own privacy policies.  Recent consumer concern surrounds the lack of control over the collection and trade in vast amounts of detailed information about their online activities and real-life identities.  To this end, it is leaning on Internet companies to adopt tougher internal privacy policies that ensure the security of consumer data, and limit the collection and retention of such data. Privacy Measures. Going forward, in its report the FTC asked companies to consider consumer privacy when creating software, rather than adding privacy options later, and to be clear to consumers what data they are collecting and why.  In addition, it will work with Internet companies to implement the industry-developed Do Not Track system that lets consumers click a button on their Internet browsers to ensure their data is not being collected. "We are confident that consumers will have an easy to use and effective Do Not Track option by the end of the year because companies are moving forward expeditiously to make it happen and because lawmakers will want to enact legislation if they don't," said FTC Chairman Jon Leibowitz in a statement. Information Market. In recognition of online data brokers who buy, compile, and sell personal information about consumers, the agency said there should be legislation that would provide consumers with access to information held by data brokers.  In addition, data brokers should explore a centralized website where consumers could get information about their practices and their options for controlling data use. Citing multiple privacy bills moving through Congress, the FTC urged lawmakers toward general privacy legislation, data securityand breach notification legislation, and data broker legislation.  For its part, the White House last month proposed a "privacy bill of rights" that would give consumers more control over their data;  currently, it relies heavily on voluntary commitments by Internet companies like Google and Facebook. For further details, go to [CNBC, 3/26/12].