Proposal to Force Disclosure of Personal Data Sparks Debate

A California proposal requiring firms to disclose what personal data they have collected and who they have shared it with has Internet firms fighting back.

April 09, 2013

SACRAMENTO – Silicon Valley tech firms are fighting a California bill that would require companies like Facebook and Google to disclose to users the personal data they have collected and with whoever they have shared it, the Wall Street Journal reports.

The “Right to Know Act” bill was introduced in February by Bonnie Lowenthal and is believed to be the first of its kind in the United States. It would require Internet firms, upon request, to share with Californians personal information they have collected, including buying habits and sexual orientation, along with any third parties they have shared or sold that data.

The bill updates a 10-year-old law that targeted the direct marketing industry and if enacted, would bring the state’s privacy practices closer to those common in Europe.

"In 2003, the biggest problem people had with privacy was telemarketing," Lowenthal said. "Today, there are so many different mobile apps that can track location and spending habits that it's time for an update in state law."

A coalition of businesses and trade groups wrote to Lowenthal last month urging her to "not move forward" with a bill that seeks to impose "costly and unrealistic mandates" that could leave them vulnerable to lawsuits.

The proposed new California law would require Internet companies to disclose what information they have shared with third parties, a critical and novel approach to Internet privacy.

"There is real impact for individuals when they don't know how their information is being collected and when it is being shared in ways they don't want," said Nicole Ozer, a policy director at the American Civil Liberties Union of California, which co-sponsored the bill.

Robert Callahan, director of state government affairs at TechAmerica, said Web companies already seek to protect users' privacy. But because websites sometimes gather personal information without attaching it to a user's name, it would be nearly impossible for them to provide individuals with the information this bill requires.

"The burden placed on innovative Internet companies in California — would that outweigh the benefit to consumers of having a deluge of amorphous information?" he said.

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