US administration proposes 'bill of rights' to protect online privacy

The Department of Commerce has published a report (88-page / 1MB PDF) recommending the creation of a privacy 'bill of rights' for internet users; mandatory privacy codes of conduct; and legal reform to take account of cloud computing.

Obama has also appointed two members to the Privacy and Civil Liberties Oversight Board, one of them a prominent digital rights activist.

The Department of Commerce's policy framework says that the US Government should "consider establishing fair information practice principles comparable to a 'privacy bill of rights' for online consumers; consider developing enforceable privacy codes of conduct in specific sectors with stakeholders; create a Privacy Policy Office in the Department of Commerce"; [and] review the Electronic Communications Privacy Act for the cloud computing environment," a Commerce Department statement said.

"The green paper recommends reinvigorating the commitment to providing consumers with effective transparency into data practices, and outlines a process for translating transparency into consumer choices through a voluntary, multistakeholder process," said the report.

Though some of the codes of practice recommended by report will be voluntary, it said that consumer protection agencies at state level and the Federal Trade Commission will protect consumers from harmful actions by companies that do not sign up to them.

The paper also recommends harmonising state laws that demand that companies notify people whose data has been part of a data security breach.

The 'internet bill of rights' could have a major impact on the way that companies deal with consumers' data.

"The report recommends considering a clear set of principles concerning how online companies collect and use personal information for commercial purposes," said a Commerce Department statement. "These principles would be recognized by the U.S. government and serve as a foundation for online consumer data privacy."

"They would build on existing Fair Information Practice Principles (FIPPs) that are widely accepted among privacy experts as core obligations," it said. "[This] should prompt companies to be more transparent about their use of consumer information; to provide greater detail about why data is collected and how it is used; to put clearer limits on the use of data; and to increase their use of audits and other ways to bolster accountability."

“America needs a robust privacy framework that preserves consumer trust in the evolving Internet economy while ensuring the web remains a platform for innovation, jobs, and economic growth," said Commerce Secretary Gary Locke. "Self-regulation without stronger enforcement is not enough. Consumers must trust the internet in order for businesses to succeed online."

Technology news service CNET News has said that Obama has appointed two members to  the Privacy and Civil Liberties Oversight Board, a body created in 2004 but inactive since 2008..

CNet reported that Obama has appointed Jim Dempsey of digital rights lobby group the Center for Democracy and Technology and former assistant attorney general Elisebeth Cook to the Board.