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US Commerce Dept. releases policy framework for protecting consumer privacy online -

The US' Department of Commerce has issued a report detailing initial policy recommendations aimed at promoting consumer privacy online while ensuring the Internet remains a platform that spurs innovation, job creation and economic growth. The report outlines a framework to increase protection of consumers' commercial data and support innovation and evolving technology. The Department is seeking additional public comment on the plan to further the policy discussion and ensure the framework benefits all stakeholders in the Internet economy.

The report, based on public input and discussion, recognises the growing economic and social importance of preserving consumer trust in the Internet. Global online transactions are currently estimated at $10 trillion annually. The report notes that the nation's privacy framework must evolve to keep pace with changes in technology, online services and Internet usage. To keep the digital economy growing, consumers need more transparency and control when it comes to the use and protection of their personal information, and innovators need greater certainty in order to meet consumer privacy expectations and the array of regulatory requirements they face around the world.

The report recommends considering a clear set of principles concerning how online companies collect and use personal information for commercial purposes. These principles would be recognised by the US government and serve as a foundation for online consumer data privacy. They would build on existing Fair Information Practice Principles (FIPPs) that are widely accepted among privacy experts as core obligations.

Further, the report recommends the adoption of baseline FIPPs, akin to a 'Privacy Bill of Rights'. This is expected to prompt companies to be more transparent about their use of consumer information; provide greater detail about why data is collected and how it is used; put clearer limits on the use of data; and increase their use of audits and other ways to bolster accountability. Other key recommendations include developing enforceable privacy codes of conduct in specific sectors with stakeholders; encouraging global interoperability to spur innovation and trade; considering how to harmonise disparate security breach notification rules; and reviewing the electronic communications privacy act for the cloud computing environment.

The Commerce Department will seek public comment and publish questions from the report in a Federal Register notice shortly . The Department's Internet Policy Task Force will also continue to work with others in government to engage the domestic and global privacy community, and will consider publishing a refined set of policy recommendations in the future.

The report is available for download at http://www.commerce.gov/node/12471.

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