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US tweaks Internet privacy guidelines

By Reuters
Washington, 13 Feb 2009

Federal regulators tweaked recommendations for how Web sites should collect, save and share information about users, extending them to Internet service providers and mobile users.

The Federal Trade Commission issued new guidance yesterday for the self-regulated industry that urges Web sites to tell consumers that data is being collected during their searches and to allow them to opt out.

This guidance recommends that mobile companies and Internet service providers also inform customers about data collection and allow users to decline.

"You may have a contract with your ISP and everywhere you go, they can be collecting information on you," said Jessica Rich, the FTC's assistant director in the division of privacy and identity protection.

There are few US laws about the collection and use of data from the Internet, with exceptions of instances where firms fail to live up to advertised promises to protect privacy, or fail to deliver an expected level of data protection.

One of the four commissioners who approved the report, Jon Leibowitz, warned the industry's failure to safeguard the public's privacy could lead to a tougher federal position.

"Industry needs to do a better job of meaningful, rigorous self-regulation or it will certainly invite legislation by Congress and a more regulatory approach by our commission," he wrote.

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