I

104TH CONGRESS

2D SESSION H. R. 3685

To require the Federal Trade Commission and the Federal Communications

Commission to take action, as necessary, to protect consumer privacy

in light of the convergence of communications technologies.

IN THE HOUSE OF REPRESENTATIVES

JUNE 20, 1996

Mr. MARKEY introduced the following bill; which was referred to the

Committee on Commerce

A BILL

To require the Federal Trade Commission and the Federal

Communications Commission to take action, as necessary, to protect consumer privacy in light of the convergence of communications technologies.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Communications Pri5 vacy and Consumer Empowerment Act’’.

6 SEC. 2. FINDINGS.

7 The Congress finds the following:
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1 (1) As our Nation’s communications networks

2 continue to grow and become ever more sophisti3 cated, more individuals and industries will be using

4 such networks to conduct commercial transactions.

5 (2) It is important to establish personal privacy

6 rights and industry obligations now so that consum7 ers have confidence that their personal privacy is

8 fully protected in our Nation’s telecommunications

9 networks.

10 (3) The information superhighway must be safe

11 and secure for all its travellers so that economic

12 growth is not threatened due to consumer concern

13 over the electronic ethics of certain cyberspace mar14 keters.

15 (4) The Telecommunications Act of 1996 (Pub16 lic Law 104–104) contains expanded privacy protec17 tions for consumers by requiring that telecommuni18 cations carriers under the jurisdiction of the Federal

19 Communications Commission obtain consumer ap20 proval prior to reusing or selling certain personal in21 formation.

22 (5) It is becoming increasingly apparent that

23 the existing privacy protections accorded consumers

24 with respect to information gathered by tele25 communications carriers are not alone sufficient to
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1 protect consumer privacy rights and that further

2 protections are needed to ensure that such rights are

3 retained and respected on the information super4 highway by other entities doing business in

5 cyberspace.

6 (6) In addition to the growing number of busi7 nesses and adults getting online, some 2,000,000

8 kids currently use the Internet and this number is

9 expected to grow to more than 15,000,000 by the

10 year 2000.

11 (7) Recent media reports indicate that online

12 marketers are gathering personal information from

13 children, in some cases in a deceptive manner.

14 (8) In addition to the work performed by the

15 Federal Communications Commission in regulating

16 our Nation’s telecommunications networks, the Fed17 eral Trade Commission continues to have the task of

18 ensuring that online marketers and businesses at the

19 ends of the line do not engage in deceptive or fraud20 ulent practices.

21 (9) The ease of gathering and compiling per22 sonal information, both overtly and surreptitiously,

23 in cyberspace is becoming increasingly efficient and

24 almost effortless due to advances in digital tele25 communications technology. As a result, digital tech-
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1 nology allows information gatherers to compile high2 ly detailed personal histories of both children and

3 adults who are network users.

4 (10) Regardless of the technology that consum5 ers use, their privacy rights and expectations remain

6 a constant. Consumers must have knowledge that

7 personal information is being collected about them;

8 consumers must be given conspicuous notice if the

9 recipient of that information intends to reuse it for

10 other purposes, or disclose, or sell it; and finally,

11 consumers must have the right to prohibit or curtail

12 any reuse or sale of their personal information.

13 (11) Our Nation’s communications networks,

14 including the Internet, have developed extremely

15 rapidly over the last 2 years, and changes in stand16 ards, protocols, and digital technologies have enabled

17 consumers to make decisions about access to infor18 mation and services, such as the types of content on

19 the Internet.

20 (12) New innovative technology may empower

21 consumers and parents to better control dissemina22 tion of personal information by restoring decision23 making power to the consumer or parent.

24 (13) Industry efforts, with Government encour25 agement and oversight, to assist consumers through
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1 the development of standards, protocols, and prac2 tices for the collection and dissemination of personal

3 information is critical to help parents and consumers

4 better control dissemination of their personal infor5 mation.

6 (14) Adoption of strong, fair information poli7 cies, standards, and practices, along with the wide8 spread implementation and utilization of consumer

9 empowerment tools, may limit the need for Govern10 ment regulation of personal information collection

11 and dissemination practices on the Internet.

12 SEC. 3. FEDERAL TRADE COMMISSION EXAMINATION.

13 (a) PROCEEDING REQUIRED.—Within 6 months after

14 the date of enactment of this Act, the Federal Trade Com15 mission shall commence a proceeding—

16 (1) to determine whether consumers are able,

17 and, if not, the methods by which consumers may be

18 enabled—

19 (A) to have knowledge that consumer in20 formation is being collected about them through

21 their utilization of various telecommunications

22 services and systems;

23 (B) to have conspicuous notice that such

24 information could be used, or is intended to be

25 used, by the entity collecting the data for rea-
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1 sons unrelated to the original communications,

2 or that such information could be sold (or is in3 tended to be sold) to other companies or enti4 ties; and

5 (C) to stop the reuse, disclosure, or sale of

6 that information;

7 (2) to determine whether, in the case of con8 sumers who are children, the abilities described in

9 subparagraphs (A), (B), and (C) of paragraph (1)

10 are or can be exercised by their parents;

11 (3) to propose changes in the Commission’s reg12 ulations as necessary to correct any defects identi13 fied pursuant to this section in the privacy rights

14 and remedies of parents and consumers generally;

15 (4) to review responses and suggestions from

16 affected commercial and nonprofit entities, as well

17 as from the National Telecommunication and Infor18 mation Administration, to the proposed changes

19 made pursuant to paragraph (3); and

20 (5) to prepare recommendations to the Con21 gress for any legislative changes required to correct

22 such defects.

23 (b) SCHEDULE FOR FEDERAL TRADE COMMISSION

24 RESPONSES.—The Federal Trade Commission shall, with25 in 1 year after the date of enactment of this Act—
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1 (1) complete any rulemaking required to revise

2 Commission regulations to correct any defects in

3 such regulations identified pursuant to subsection

4 (a); and

5 (2) submit to Congress a report containing the

6 recommendations required by subsection (a)(5).

7 SEC. 4. FEDERAL COMMUNICATIONS COMMISSION EXAM8 INATION.

9 (a) PROCEEDING REQUIRED.—Within 6 months after

10 the date of enactment of this Act, the Federal Commu11 nications Commission shall commence a proceeding—

12 (1) to examine the impact of interconnected

13 communications networks of telephone, cable, sat14 ellite, wireless devices, and other technologies on the

15 privacy rights and remedies of the consumers of

16 those technologies, as described in paragraphs (1)

17 and (2) of section 3(a);

18 (2) to determine whether consumers are able,

19 and, if not, the methods by which consumers may be

20 enabled to exercise such rights and remedies;

21 (3) to propose changes in the Commission’s reg22 ulations to ensure that the effect on consumer pri23 vacy rights is considered in the introduction of new

24 telecommunications services and that the protection

25 of such privacy rights is incorporated as necessary
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1 in the design of such services or the rules regulating

2 such services;

3 (4) to propose changes in the Commission’s reg4 ulations as necessary to correct any defects identi5 fied pursuant to this section in such rights and rem6 edies;

7 (5) to review responses and suggestions from

8 affected commercial and nonprofit entities, as well

9 as from the National Telecommunications and Infor10 mation Administration, to the proposed changes

11 made pursuant to paragraph (4); and

12 (6) to prepare recommendations to the Con13 gress for any legislative changes required to correct

14 such defects.

15 (b) SCHEDULE FOR FEDERAL COMMUNICATIONS

16 COMMISSION RESPONSES.—The Federal Communications

17 Commission shall, within 1 year after the date of enact18 ment of this Act—

19 (1) complete any rulemaking required to revise

20 Commission regulations to correct defects in such

21 regulations identified pursuant to subsection (a);

22 and

23 (2) submit to the Congress a report containing

24 the recommendations required by subsection (a)(6).

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