Key members of both the US House of Representatives and Senate are turning their attention to the issue of consumer privacy: what information can marketers collect, how can they use it, and what must they do to protect consumer rights.

Rep. Bobby Rush (D-IL) introduced the first of the new privacy bills, HR 5777, in mid-July. Congressman Rush is the chair of the Commerce, Trade and Consumer Protection subcommittee of the House Energy and Commerce Committee. Many of the online privacy issues come under the subcommittee’s jurisdiction. The subcommittee held a hearing on the bill on July 19. See transcript of the hearing.

Sen. John D.Rockefeller (D-WV), chairman of the Senate Commerce, Science & Transportation Committee, also held a hearing on online privacy issues at the end of July. Although no Senate bill has been introduced, several Senators, including Senators Rockefeller and John F. Kerry (D-MA) indicated interest in legislation concerning on-line advertising and consumer protection. Information on the Senate hearing, including testimony from FTC chairman Jon Liebowitz, can be found at on the Senate's Web site.

Rep. Rick Boucher (D-VA), chairman of the Communications, Technology and Internet subcommittee, also has circulated a draft of a bill with similar privacy concerns. Capitol Hill observers expect the two subcommittee chairman to vie for jurisdiction and control of the privacy agenda in the next few months.

“Online privacy issues are clearly top of mind in Washington these days,” said Dick O’Brien, head of the 4A’s Washington office. “The Rush bill is the only bill that has been formally introduced to date. It does a good job of establishing ‘safe harbors’ for marketers,” he said. “While we have concerns about some of the provisions, we do applaud Rep. Rush’s understanding of the very complicated relationship between information that should be protected and the rights and needs of marketers. Our industry has worked hard to establish best practices and effective self-regulatory systems. We believe that these new initiatives should indeed provide the safe harbor to protect both consumers and business.”

Rep. Rush told the July 19th hearing that he intends to push for passage of his bill before the end of the year. However, Congress faces a shortened legislative year due to the 2010 midterm elections in November and most observers suggest that it will be difficult to get such a far-reaching bill through the House of Representatives and the Senate in such a short period. Senators Rockefeller and Kerry have said that they will work toward a new bill when Congress reconvenes in January.

For more information about this bill and privacy proposals, contact Dick O’Brien in the 4A’s Washington office.

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