FCC Approves New Customer Privacy Rules for Broadband Providers
October 27 2016 - 12:40PM
Dow Jones News
Federal telecommunications regulators adopted a scaled-back
version of a privacy regulation that would require broadband
internet providers to get consumer approval before marketing
sensitive information, but the ruling failed to quiet opposition
from internet providers and even some firms that aren't covered by
the rules.
The Federal Communications Commission on Thursday approved 3-2
new regulations that generally would make companies such as Comcast
Corp. and Verizon Communications Inc. receive authorization to sell
information like a customer's web-browsing history to a third
party.
Internet service providers complained that the rules were too
tough, because they are viewed as more restrictive than the privacy
rules governing internet companies such as Alphabet Inc.'s Google
unit that are now market leaders in monetizing consumers' online
data.
For their part, those internet firms worry that the FCC move
will lead other federal regulators to toughen restrictions on their
operations.
The rules are somewhat more generous to internet providers than
an earlier FCC plan.
Still, consumer advocates generally supported the new plan,
which is modeled on the longstanding internet-privacy policies of
the Federal Trade Commission.
Commissioner Mignon Clyburn said the rules were justified by
growing concerns about privacy, spurred in part by data breaches.
"Consumers care deeply about their privacy, and so should we," Ms.
Clyburn said.
The debate over online privacy protection is likely to continue.
Commissioner Jessica Rosenworcel suggested the government form an
interagency council to work on harmonizing the current patchwork of
rules.
Republicans on the FCC opposed the new rules, arguing that they
singled out internet service providers for tougher regulation
without justification.
Commissioner Ajit Pai accused the commission majority of
"corporate favoritism" benefiting businesses such as Google.
Write to John D. McKinnon at john.mckinnon@wsj.com
(END) Dow Jones Newswires
October 27, 2016 12:25 ET (16:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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