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U.S. Senators Propose Web Privacy Legislation

Bill would require sites to post clear, concise privacy policies or face fines of up to $500,000.

By Margret Johnston, PCWorld   

Under the provisions of the bill, Web sites would have to divulge how they plan to use consumers' personal data collected from Net surfers. The bill would require companies to describe exactly who is collecting the information, how the information will be used, the types of information collected and whether personal information is required to use the site. The Web sites also would have to take steps to secure the personal information once it's in their databases.

Senators Spence Abraham, a Republican from Michigan, John McCain, a Republican from Arizona, and John Kerry, a Democrat from Massachusetts, held a news conference Wednesday to announce the introduction of the bill. Surfing the Web shouldn't require you to share your life story with the world, Abraham said in a statement. The bill is designed to make sure Internet users know exactly how a company will use the personal information they submit so they can make a clear decision whether or not to do business with that Web site, he added.

The bill will also require Web sites to provide consumers with a clear opportunity to limit the use and disclosure of personal information for marketing purposes.

Penalties set in the legislation would be enforced by the U.S. Federal Trade Commission (FTC), according to the statement. Anyone who violates the privacy provisions would face a civil penalty of $22,000 per violation up to a maximum amount of $500,000.

The new provisions would allow the FTC to move more swiftly to a civil lawsuit. Currently, if a Web site violates its own privacy policy, the FTC can issue an order against the company, but there is no penalty unless the Web site violates the original FTC order. If that occurs, the FTC can pursue a civil penalty.