New privacy rules for Internet service would be illegal, providers say

(WashingtonPost) - As we spend more of our time and money on the Internet, the big companies responsible for connecting you to it are becoming more interested in using your browsing history and online habits in the same way that Google or Facebook does — turning that valuable behavioral information into ad dollars and using the data to power new online services to compete with Web companies.

Now, Internet providers are working to thwart a federal proposal aimed at enhancing your online privacy, in the latest battle between industry and government regulators over the future of the Web.

The proposal from the Federal Communications Commission could put limits on some of that commercial activity, requiring broadband companies, such as AT&T and Comcast, to obey some of the same privacy regulations that govern traditional phone companies. Under the existing rules, carriers have to protect personal information that you provide as a part of receiving the service you pay for — things like your name, address and credit card information, among other types of data. And they can't share that information unless you actively say so.

Internet providers have not historically been required to follow these regulations, although they are legally obligated to carry out any commitments they make to consumers in their privacy policies and certain state laws. So it's no surprise to see broadband industry groups pushing back, arguing the proposed rules would be unconstitutional and illegal, not to mention burdensome. And it's raised a big debate over just how different, if at all, Internet providers are from digital media companies.

You see, if companies like Google basically know everything about you already, then an Internet provider that knows everything about you isn't all that different, and shouldn't have to live by different rules. That's the argument from the industry, which was laid out Friday in a blog post from AT&T. (Full Story)

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