FCC Imposes ISP Privacy Rules and Takes Aim At Mandatory Arbitration (arstechnica.com)

An anonymous reader quotes a report from Ars Technica: The Federal Communications Commission today imposed new privacy rules on Internet service providers, and the Commission said it has begun working on rules that could limit the use of mandatory arbitration clauses in the contracts customers sign with ISPs. The new privacy rules require ISPs to get opt-in consent from consumers before sharing Web browsing data and other private information with advertisers and other third parties. The rules apply both to home Internet service providers like Comcast and mobile data carriers like Verizon Wireless. The commission's Democratic majority ensured the rules' passage in a 3-2 vote, with Republicans dissenting. Democratic Commissioner Mignon Clyburn was disappointed that the rules passed today did not include any action on mandatory arbitration clauses that prevent consumers from suing ISPs. But Chairman Tom Wheeler said that issue will be addressed in a separate rule-making. In the case of privacy rules, the FCC passed the NPRM in March and the final rules today. Clyburn argued that the FCC could have imposed mandatory arbitration restrictions today, because the privacy NPRM sought public comment about whether to ban mandatory arbitration. Under the FCC rules, ISPs that want to share consumer data with third parties such as advertisers must obtain opt-in consent for the most sensitive information and give customers the ability to opt out of sharing less sensitive information. Here's how the FCC describes the new opt-in and opt-out requirements: "Opt-in: ISPs are required to obtain affirmative 'opt-in' consent from consumers to use and share sensitive information. The rules specify categories of information that are considered sensitive, which include precise geo-location, financial information, health information, children's information, Social Security numbers, Web browsing history, app usage history, and the content of communications. Opt-out: ISPs would be allowed to use and share non-sensitive information unless a customer 'opts-out.' All other individually identifiable customer information -- for example, e-mail address or service tier information -- would be considered non-sensitive, and the use and sharing of that information would be subject to opt-out consent, consistent with consumer expectations. Exceptions to consent requirements: Customer consent is inferred for certain purposes specified in the statute, including the provision of broadband service or billing and collection. For the use of this information, no additional customer consent is required beyond the creation of the customer-ISP relationship." ISPs must clearly notify customers about the types of information they collect, specify how they use and share the information, and identify the types of entities they share the information with.

Comments

Love the new FCC

[TimothyHollins]

I don't know what's gotten into this new FCC, but I love it. I can't think of a single organization that is currently doing more for the consumer than these guys. It's like a consumer friendly tiger, or baby-safe Harambe if you will.

I wonder how long it will take until the Comcast/Verizon/AT&T lobby shuts them down via congress.

Re:Love the new FCC

[mysidia]

I think the FCC caught these companies off guard.... the broadband providers weren't expecting to be regulated, so
they didn't make the right investments in getting the regulators bought off, and ensuring cronies were appointed to the
commissions: Also, an opportunity has not yet presented itself to get FCC board people replaced;
these folks are in for an entire administration, and it would take something like a new president coming into office,
to give major carriers a shot at re-populating the board with their own people.....

I expect things will be dramatically different in the upcoming years, as the broadband providers
make larger investments in buying more politicians, and getting laws changed through congressional lobbying, and
more influence in the selection of FCC commissioners through bought-and-paid-for government executives.

Re: Love the new FCC

[KozmoStevnNaut]

And by "disruptive innovation", you mean "selling their customers' private information to the highest bidder"?

Re: Love the new FCC

[silentcoder]

I get the feeling Wheeler is one of those rare people who just does his job as well as he possibly can without much caring who he is doing it for. When he led their trade association he fought for everything they wanted, when he got the job as FCC chairman - he decided to be the best FCC chairman he could be and now he was representing the people as hard as he once represented the ISPs.

Boilerplate auto check

[WillAffleckUW]

You have to go five levels deep in the menu to opt out.

In real countries, you have to separately sign and date any opt-in that gives away your privacy, and the default is No.

What authority does the FCC have to do this?

[schwit1]

I hate mandatory arbitration too, but Congress made the Federal_Arbitration_Act and it's been upheld by SCOTUS. I don't see anything in it that exempts the FCC.

I'm also not a fan of unelected and unaccountable bureaucrats making rules that have the force of law.

Re:We need a workers party!

[Opportunist]

Can I just stay in Europe? Saves you the money and me the hassle.