Senate bill to target Web cookies

By Margaret Kane, ZDNet News ©
February 10, 2000 12:30 PM PT

Sen. Robert Torricelli's proposal would require companies to ask permission before gathering consumer data, including information from cookies.

U.S. Sen. Robert Torricelli (D-N.J.) said Thursday he would introduce a bill to regulate the use of personal information and Web cookies on the Internet. 

Torricelli said that while he preferred self-regulation of Internet issues, he was concerned about consumers' privacy rights.

"Americans have experienced violations of their most basic liberties for a long time," he said. "There is no assurance that someone may not violate those liberties again in a much more efficient manner."

The proposal, dubbed the Internet Privacy Act, would require firms to use an opt-in approach, rather than an opt-out approach to collecting and selling consumer data. Currently many firms simply take in the data and require consumers to notify them if they don't want it used.

But Torricelli said that most consumers are not aware that they can opt out, saying that information "that inform(s) people their privacy may be compromised (is) hidden. It is not a genuine attempt at informing people that their privacy is in jeopardy."

Cookies to be regulated

The opt-in policies would require sites to get consumer permission before collecting or using the data gathered directly from consumers or by cookies.

The use of cookies, small files used to help firms track users on the Web, has come under fire recently. Many sites use cookies, which identify a user, to personalize data presented to consumers. But the files can also be used to track where consumers go online and what they look at while they're there.

Internet advertising firm DoubleClick Inc. (Nasdaq:DCLK) was sued recently by consumers who claim that the company uses and illegally collects and sells personal data.

Amazon.com Inc.'s (Nasdaq:AMZN) Alexa Internet division was also sued by consumers claiming it violates their privacy. The Federal Trade Commission has taken a look at Amazon, the company disclosed this week.

"As we pass into the 21st century it seems everywhere our privacy is at risk, said Marc Rotenberg, executive director of the Electronic Privacy Information Center. "What will happen to our privacy tomorrow? Opt in ... re-establishes fairness and gives consumers control."

EPIC today filed a complaint with the FTC against DoubleClick, asking the Commission to "investigate the practices of the company, to destroy all records wrongfully obtained, to invoke civil penalties, and to enjoin the firm from violating the Federal Trade Commission Act."

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