National Consumer Protection Week: Spotlight on Privacy

On Monday, President Obama declared March 4-10, 2012 as National Consumer Protection Week, building on a coordinated effort that encourages consumers nationwide to take full advantage of their consumer rights and make better-informed decisions. The Commerce Department is using this occasion to showcase the efforts of our Internet Policy Task Force, which is leveraging the expertise of several Commerce bureaus that are aimed at ensuring continued innovation in the Internet economy and preserving consumer trust in Internet commerce and online interactions. In particular, the Task Force continues to move forward in our work to promote new efforts that will lead to improved Internet privacy protection and better security for consumers online.One of the biggest problems facing consumers online is the heavy reliance on usernames and passwords.  Most Internet users are asked to create so many logins and passwords that they have to create coping mechanisms to keep track of them all, from using the same one as often as possible to writing them all down, none of which lead to strong security practices.  In fact, exploiting the inherent weaknesses of passwords was the top method attackers used last year, according to the 2012 Data Breach Investigations Report produced by Verizon.  

Today, Secretary John Bryson joined National Economic Council Director Gene Sperling and FTC Chairman Jon Leibowitz for the unveiling of an online “Consumer Privacy Bill of Rights” (PDF) at an event at the White House. This “Bill of Rights” serves as a comprehensive blueprint to improve consumers’ privacy protections and ensure that the Internet remains an engine for innovation and economic growth.

Just weeks after the Obama administration released its blueprint to improve consumer privacy and ensure that the Internet remains an engine for innovation and economic growth, Commerce's National Telecommunications and Information Administration (NTIA) is moving forward to put the plan into practice. NTIA Administrator Lawrence E. Strickling told an audience at the Hudson Institute yesterday that the administration supports enacting the blueprint’s "Consumer Privacy Bill of Rights" into law, but can make progress without waiting for Congress to act. He said the agency will promptly begin convening stakeholders to develop enforceable codes of conduct that specify how the broad principles in the Consumer Privacy Bill of Rights apply in specific business contexts.“The multistakeholder approach for privacy is viable without new legislation, and getting it up and running is an important focus for NTIA right now,” Strickling said.Shortly after release of the administration’s privacy blueprint, NTIA invited public comment on which consumer privacy issue it should designate as the first topic for development of a code of conduct. NTIA also sought comment on the process stakeholders should use in working together to develop codes. The agency is now reviewing input from a wide range of stakeholders.

The Department of Commerce today issued a report detailing initial policy recommendations aimed at promoting

Guest blog post by Cameron Kerry, General Counsel for the U.S. Department of Commerce.The time has come for Congress to pass strong Internet consumer privacy legislation that provides clear rules of the road for businesses and consumers while preserving the innovation and free flow of information that are hallmarks of the Internet economy.That’s the Obama Administration’s conclusion based on the work we have been doing on commercial data privacy.  Three months ago, the Commerce Department published its Green Paper, which contained preliminary policy recommendations to enhance consumer protection and strengthen online trust, while ensuring the Web remains a platform for innovation, jobs, and economic growth In response, the Commerce Department received thoughtful and well-researched comments from over a hundred stakeholders representing industry, consumer groups, and academic sectors.  We carefully reviewed all them.  Through the Privacy and Internet Policy Subcommittee of the National Science and Technology Council (NSTIC), which I co-chair with Assistant Attorney General Christopher Schroeder, we consulted with Federal agencies and key White House offices to develop a roadmap for moving forward on this important Administration priority. Based our review, we have concluded that baseline consumer privacy legislation will strengthen the U.S. Internet privacy framework for consumers and businesses alike.  The Obama Administration is committed to working with Congress to pass a bill that provides a stronger statutory framework to protect consumers’ privacy interests in data that are collected and used or disclosed in commercial contexts in the Internet economy, while supporting innovation.  Consumer privacy legislation should have the following elements:

Both industry and public interest groups agree that online consumer privacy should be strengthened, said Daniel Weitzner, NTIA’s Associate Administrator for Policy. Speaking in Washington D.C. today, Weitzner said that public response to the Commerce Department’s inquiry into online privacy underscores the need to bolster privacy in a manner that continues to ensure the Web remains a platform for innovation, jobs, and economic growth. Weitzner said that the Commerce Department’s decision to address online privacy and other Internet policy issues stems from the significant and growing social and economic contributions that the Internet makes to our lives. For example, domestic online transactions are currently estimated to total $3.5 trillion annually, and digital commerce is a leading source of job growth.  “Preserving consumer trust is essential to the sustainability and continued growth of the digital economy,” said  Weitzner. Based on stakeholder feedback gained through the Commerce Department’s inquiry, Weitzner outlined an approach that can promote innovation while increasing consumer trust, including committing to baseline privacy principles and convening stakeholders to develop voluntary but enforceable codes of conduct to implement those principles.

Assistant Secretary of Commerce for Communications and Information Lawrence E. Strickling today addressed privacy and innovation at the 32nd International Conference of Data Protection and Privacy Commissioners in Jerusalem. In his keynote address, Strickling stressed that preserving trust in the Internet is imperative for its sustainability and continued growth.

Guest blog post by Rick Wade, senior adviser to Secretary Locke, deputy chief of staff, and member of the President’s Task Force on Puerto Rico’s StatusToday the President’s Task Force on Puerto Rico’s Status submitted a report to President Obama and Congress that provides recommendations for addressing Puerto Rico’s political status and economic climate. The report identifies specific proposals for boosting economic development, building competitive industries, and improving the quality of life for the people of Vieques – a Puerto Rican island-municipality in the northeastern Caribbean.These recommendations, along with plans for their implementation, follow two public hearings held in San Juan, Puerto Rico and Washington, D.C., as well as meetings with island officials and other stakeholders to gather input directly from a broad cross section of voices on the issues of Puerto Rico’s status and economic development.The report underlines the fact that Puerto Rico’s political status continues to be of great importance to its people. Its economy – like many others – has also faced significant challenges in recent years, driving the need for a greater focus on economic progress in the U.S. territory. Per capita income in Puerto Rico remains at less than one-third of that in the United States, due in part to its low employment rate and persistently low rate of labor force participation.The U.S. Department of Commerce will be intensely involved in implementing the recommendations of the Task Force’s report. Six of the department’s 12 bureaus will lead projects in support of economic growth in Puerto Rico. The National Telecommunications and Information Administration will help develop an interagency team that works to connect Puerto Ricans to broadband Internet. The International Trade Administration’s U.S. Export Assistance Center in San Juan will help Puerto Rico increase its exports. And the department’s Bureau of Economic Analysis will help Puerto Rico update its methodology for calculating gross domestic product so it aligns with U.S. standards and better captures economic conditions there.