The House Subcommittee on Commerce, Trade, and Consumer Protection held a hearing on possible "Do-Not-Track" legislation on December 2. The aim of the hearing was to examine the feasibility of establishing a mechanism that provides Internet users a simple and universal method to opt-out from having their online activity tracked by data-gathering firms.
Currently, no federal law specifically governs the online advertising industry or the practice of tracking Internet consumers to deliver behaviorally target ads. Nor are there any federal laws that comprehensively govern the collection, use, and dissemination of consumer information across the board. Specific federal laws, however, do address certain categories of personal information or specific entities.
Subcommittee Chairman Bobby Rush (D-IL) plans to introduce online privacy legislation next year and is considering including a do-not-track requirement. He indicated he was still undecided, but noted there were benefits to such a tool. “Through such a mechanism, consumers could advise would-be trackers unambiguously and persistently that they do not wish to be followed by digital snoopers and spies across websites and their various fixed and mobile computing devices," Chairman Rush said.
The Obama administration endorsed the idea of voluntary industry compliance with stronger consumer privacy protections, but has not backed the call for a broad do-not-track function, said Daniel J. Weitzner, associate administrator for the Office of Policy Analysis and Development at the National Telecommunications and Information Administration. The Commerce Department will soon publish a series of policy ideas and questions through a Department of Commerce “green paper,” which are intended to play a key role in our effort to close gaps in consumer protection, strengthen online trust, and bolster the Internet economy. The paper will contain both proposed recommendations for discussion and a further set of questions on topics about which we seek further input.
David Vladeck, Director of the Federal Trade Commission’s Bureau of Consumer Protection, said that while the FTC recognizes that consumers may benefit in certain ways from the practice of tracking consumers online to serve targeted advertising, the agency supports giving consumers a “Do Not Track” option because the practice is largely invisible to consumers, and they should have a simple, easy way to control it. The FTC proposes that Do Not Track would be a persistent setting on consumers’ Web browsers. He said the practice of tracking consumers’ activities online to target advertising, known as behavioral advertising, holds value for consumers because it supports content and services on the Web and delivers more personalized ads. He noted, however, that more transparency and consumer control regarding the practice are needed.
Republicans greeted the idea of Internet "do not track" proposal coolly, expressing concern that hindering advertiser access to consumers web browsing habits would slow innovation. Rep Ed Whitfield (R-KY), the ranking member on the subcommittee, expressed concern that the free services now financed by advertising would be hurt, and that consumers would lose access to ads they want to see. "What will happen to advertising-supported Internet content? We need to be mindful not to enact legislation that would hurt a recovering economy."