Microsoft's deputy general counsel called for a comprehensive access to protecting online consumer privacy in testimony before the Senate Committee on Commerce, Science and Transportation.
Erich Andersen, deputy general direction of Microsoft's Windows division, yesterday addressed an online privacy bill of rights proposed by Sens. John Kerry (D-Mass. and John McCain (R-Ariz.).
Their card would allow consumers to opt-out of targeted online advertising.
"We know that the combined efforts of manufacture and politics are needed to effectively balance the motive to protect consumers' privacy interests and encourage innovation," Andersen said in a written statement. "In short of our experience, we advocate a multi-pronged approach that includes legislation, industry self-regulation, technology tools and consumer education."
The committee hearing was the 1st in a series the commission will have to examine commercial collection, maintenance, use and communion of consumer information. While lots of the information is used to produce targeted advertising, Sen. John D. Rockefeller IV (D-W. Va.), chairman of the committee, said in his opening statement that data brokers also use this possibly sensitive and private data to create profiles on individuals.
"Worse, even when Americans are aware this is happening, too frequently there is really little they can do to finish it. I've been alarmed by reports that companies are figuring out new ways to limit and circumvent consumer choice online," Rockefeller said.
John Montgomery, chief operating officer for the North American operations of GroupM Interaction, said many of his clients give consumers notice of what information is being collected by displaying an image on each advert that collects data. The advertising option icon gives customers more data about data practices associated with online behavioral advertising and allows them to opt-out if they choose.
Sen. Claire McCaskill (D-Mo. warned that new privacy controls may harm Internet commerce.
"What is the price going to be in price of the economic vibrancy of the Internet? How will we pass the contrast between what sort of behavioral marketing is just and what form of behavioral marketing invades privacy? I scarcely believe we get to be really careful around the unintended consequences," she said.
Kerry said he hopes the last draft of legislation will "do no harm, even as we're protecting people. I trust we can get a product where everybody is standing up and saying, 'This is good and this is something we can go with and go with,' and the consumer is actually given a set of choices and opportunities here that they don't get now to get intelligence-guided selections as to where they're heading and what's happening to their information. And I suppose we can get out of here without upsetting the obvious commercial interests that we all further and are important to us."
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