Internet users currently have a little control over their personal information once they sign up with cable and wireless companies that offer broadband services, which can share their vital data with third-parties without their consent.
A set of new consumer privacy rules drafted by the Federal Communication Commission will give consumers more control over their personal information, requiring Internet Services Providers explicit permission from users for using certain data and sharing them with their affiliate companies.
The proposals, circulated by FCC Chairman Tom Wheeler last week, will be voted on by the full Commission at a March 31 open meeting. If adopted, the proposals would be open for public comment before they go to the next stage.
“Every broadband consumer should have the right to know what information is being collected and how it is used,” Wheeler wrote in March 10 Op-ed in the Huffington Post. “Every consumer should be confident that their information is being securely protected.”
Telephone networks that have clear privacy rules for decades, but broadband networks do not have any such rules. While consumers can choose to visit a particular website or sign up for any social media, they have a little choice of avoiding the ISP once they subscribe to it for their home or their smartphone.
By handling network traffic of their consumers, ISP has a broad view of what websites their consumers visit and the apps they use. Not just that, using that data, ISPs can track the physical location of consumers throughout the day in real time.
“Even when data is encrypted, your broadband provider can piece together significant amounts of information about you – including private information such as a chronic medical condition or financial problems – based on our online activity,” Wheeler wrote.
Unlike these ISPs, information provided to phone companies are protected under the regulations of the FCC that limit their ability to resell that information for any other purposes.
Under the new proposed rules consumers will have a clear-cut idea of what they are agreeing to and will enable them to have effective control over their personal information as to how can they be used and shared by their broadband service providers.
Wheeler’s proposed rules are built around three core principles of choice, transparency and security.
For Wheeler, consumers should have the right to exercise informed control over their personal data and deserve to know what information is being collected from them, and how it’s being used. He said ISPs have an obligation to secure their consumers’ data.
New rules will not require the ISPs to seek additional permission for the use of necessary data for providing the services, marketing the type of broadband service purchased by a customer, or for the purpose of sending bill. The ISP will also be able to share such information with their affiliates to market other communications-related services, unless consumers choose to “opt out”.
Other than that, all other uses and sharing of consumer data would require express, affirmative “opt-in” consent from customers, and will help them protect their personal information from breaches that can put their health, financial and other sensitive personal information at risk.
The new proposed rules will not require ISPs to put in place robust and flexible data security requirements, rather they would need to take reasonable steps to safeguard customer information from unauthorized use or disclosure.
The proposals will require ISPs to notify affected consumers of breaches of their data within 10 days and to FCC, within seven days. They will also be required to inform the FBI and the U.S. Secret Services about any data breaches within seven days.
“It’s about Permission and Protection, not Prohibition,” Wheeler says.
The scope of Wheeler’s proposals does not include the privacy practices of websites – like Twitter or Facebook – which fall under the authority of Federal Trade Commission. Also, these proposals do not impact the government surveillance, encryption or other law enforcement issues.
