Privacy and Security

Economic analysis shows that the benefits of online information collection, such as ad-supported applications and content, greatly outweigh any costs or risks, state Paul Rubin and Michael Hammock in “Applications Want to be Free: Privacy Against Information,” released today by the Technology Policy Institute. Current arguments for increased privacy regulation are not based on economic theory or evidence and instead rely on anecdotes or a perceived inherent “right” to privacy online. As a result, policymakers should be leery of making radical changes to the current privacy regime without carefully considering the economic consequences.

Online video is now available on the C-SPAN website of last Friday’s event “Online Privacy after the DOC and FTC Reports,” hosted by the Technology Policy Institute. The event featured opening remarks by Congressman Cliff Stearns, Chairman of the Oversight and Investigations Subcommittee of the House Energy and Commerce Committee. In his remarks, Stearns outlined the goals and key provisions of the draft privacy legislation he is planning to introduce soon.

Congressman Cliff Stearns will offer remarks at this Friday’s event “Online Privacy after the DOC and FTC Reports,” hosted by the Technology Policy Institute. Rep. Stearns, Chairman of the Oversight and Investigations Subcommittee of the House Energy and Commerce Committee, is expected to soon introduce privacy legislation, building upon a previous draft developed in the last Congress.

The long-awaited Federal Trade Commission and Department of Commerce reports outlined recommendations for online privacy policy ranging from strengthening multi-stakeholder models to a “Do Not Track” mechanism for internet browsers. Congress is now poised to add its voice to the debate, with legislation already introduced and more to come. With the proposals representing a wide swath of options, how can policymakers choose the best course of action? How will each proposal affect online businesses and consumers? Alternately, is a federal privacy policy needed or advisable? Panelists at the March 4th event, “Online Privacy after the DOC and FTC Reports” will discuss the findings of the recent DOC and FTC reports and will give their suggestions on how policymakers in both the agencies and Congress can move forward on online privacy issues.

The Federal Trade Commission should rigorously analyze the costs and benefits of its proposed privacy recommendations, including the “Do Not Track” mechanism, before moving forward with any policy proposals, states Thomas Lenard in comments submitted in response to the Commission’s Staff Report on privacy. Without such an analysis, the Commission cannot accurately predict if its recommendations will improve or reduce consumer welfare.