Wheeler On FCC Privacy Proposal: This Is About ISPs And Only ISPs
Federal regulators moved forward Thursday with a proposal to require that Internet service providers get customer consent to collect data for targeted advertising — a policy that ISPs claim would put them at a disadvantage vs. Internet companies such as Alphabet ’s ( GOOGL ) Google or Facebook ( FB ). The Federal Communications Commission, with three Democratic appointees and two Republicans, voted 3-2 along party lines to open a public comment period on the consumer privacy proposal. The agency could formally approve the rules by year-end. Comcast ( CMCSA ), AT&T ( T ) and Verizon Communications ( VZ ) are among ISPs that would be impacted by FCC Chairman Tom Wheeler’s proposal. “To be clear, this is not regulating what we often refer to as the edge — meaning the online applications and services that you access over the Internet, like Twitter and Uber,” said Wheeler in a statement. “It is narrowly focused on the personal information collected by broadband providers . . . this is about ISPs and only ISPs. “And this proposal does not prohibit ISPs from using and sharing customer data — it simply proposes that the ISP first obtain customers’ express permission before doing so.” The FCC in early 2015 reclassified broadband services as a public utility, using Title II of the Communications Act of 1934. AT&T, Comcast and industry trade groups are challenging the net neutrality rules in federal court, with a court ruling expected in April. The FCC’s new consumer privacy proposal seeks broadband authority under Section 222 of the Communications Act of 1934. Under the rules, providers would need to tell consumers what information is being collected, how it is being used and when it will be shared. While the Federal Trade Commission has rules to protect consumer privacy, the FCC says more regulation is needed. Commissioner Ajit Pai, a Republican, said Thursday that there is no good reason to single out broadband providers for regulations, while not regulating websites. The plan “favors one set of corporate interests over another,” he said.