FCC Should Impose Privacy Rules on ISPs, Say Public Interest Groups

Public interest and consumer groups pressed the FCC to move forward on a privacy rulemaking, which the agency is expected to do at its March 31 meeting (see 1603030066). The letter slams a “consensus” proposal offered last week by major associations representing ISPs (see 1603010069).

“While it is encouraging that ISPs now appear willing to engage on this issue and to recognize the importance of FCC data security and data breach regulations, the proposed framework fails to provide consumers with the robust protections needed in light of ongoing ISP information collection practices,” the public interest groups told the FCC Monday. The letter said ISPs are tracking subscribers and finding new ways to monetize the data they collect. The American Civil Liberties Union, Center for Digital Democracy, Common Sense, Kids Action, Consumer Action, Consumer Federation of America, Consumer Federation of California, Consumer Watchdog, Electronic Privacy Information Center, Free Press, New America’s Open Technology Institute, Privacy Rights Clearinghouse and Public Knowledge signed the letter.

Verizon, for example, “has in place powerful data-driven tracking and targeting infrastructure for multiple platforms and devices, including mobile phones,” the letter said. “Verizon’s acquisition of both AOL and Millennial Media in 2015, as well as its advertising partnership with Microsoft, provide the company with extraordinary capabilities for data gathering, analysis, and monetization of subscriber information.” Comcast announced last year it would share viewer data collected by its cable set-top boxes with its NBCUniversal media division, the letter said. “Comcast is now actively involved in the race to build advanced data collection technologies into broadband networks and multi-screen video systems.” Verizon and Comcast didn't comment.

The FTC is “simply not equipped to provide meaningful protections for consumer privacy” and the FCC should step in, the letter said. “Because the United States currently lacks comprehensive privacy legislation or an agency dedicated to privacy protection, there are very few legal constraints on business practices that impact the privacy of American consumers,” the letter said. “The FCC has the opportunity to fill this void. In light of the increasingly pervasive tracking practices of ISPs, it is imperative that the FCC take this opportunity to exercise the full extent of its rulemaking authority to protect consumer privacy.”

“We urge those interested in protecting consumers to look at the entire online consumer data ecosystem,” responded Debbie Matties, CTIA vice president-privacy. CTIA signed last week’s ISP letter. “The consensus proposal we offered will effectively protect consumers through a consistent approach for all companies and all data based on the well-established and successful FTC model," Matties said. “The letter sent today by some advocacy groups recognizes that the use of encryption only continues to grow. While many other companies providing services on the Internet have the ability to see and monetize this encrypted data, ISPs cannot. Different rules for ISPs would only confuse consumers and is not supported by the facts.”

USTelecom, a proponent of the ISP proposal, also responded. “A consistent approach to privacy matters to consumers,” a spokeswoman said. Since inception, the FTC privacy framework “has applied uniformly across the Internet, including to broadband providers,” she said. ISPs shouldn't face a framework that applies only to them, the spokeswoman said. The public interest groups claim the FTC can’t protect consumer privacy, said Allison Remsen, executive director of Mobile Future. “But the FTC’s approach has been effective and provides the flexibility needed in a fast-paced marketplace to bring innovative new services to consumers,” she said. “Does this letter mean the FTC should take a stronger position when it comes to protecting consumer privacy with non-ISPs and edge providers?” Consumers will not benefit from a hodgepodge of rules, she said.