Web Privacy Policies Need Transparency, Say Heads Of FTC, FCC

By Rob Sanna - Talk Radio News Service

 The men in charge of both the Federal Trade Commission (FTC) and the Federal Communication Commission (FCC) told members of the Senate Committee on Commerce, Science, and Transportation on Tuesday that customers should be able to “opt-in” to information tracking when shopping on the internet.

Under current information tracking systems, consumers must “opt-out” of privacy policies or disable internet tracking devices called cookies. Unless consumers spefically tell internet service providers they do not want to be tracked, their internet activity is recorded.

“For vulernable populations and sensitive information, we have said that those should be ‘opt-in’ rather than ‘opt-out,’” said FTC Chairman Jon Liebowitz. “In terms of informing consumers and protecting their privacy…’opt-in’ is a much better approach.”

“There’s a huge disconnect between what consumers think happens to their data and what really happens to their data. Most consumers believe that a privacy policy protects their privacy, instead, a privacy policy delinates their rights and their lack thereof,” he added.

Members cited the example of a British gaming company called Gamestation, who included a clause in their terms and conditions which forced customers who agreed to “surrender their eternal soul” to Gamestation.

According to Leibowitz, most consumers did not opt out of this clause, even when provided with a rebate incentive. This, he said, demonstrates that people do not read privacy policies, and that the policies do not protect people adequately.

“In order to get the economic benefits of broadband, tele-health, and education, people need to be confident that the internet is a safe, trustworthy place,” said FCC Chairman Julius Genachowski. “The more people have the concerns that we’re hearing today, the less likely they are to take advantage of this medium.”