A Commerce Department task force called for the creation of a “Privacy Bill of Rights” for online consumers and the establishment of an office within the department that would work to strengthen privacy policies in the United States and coordinate initiatives with other countries.
The department’s Internet Policy Task Force, in a report released on Thursday, said the “Privacy Bill of Rights” would increase transparency on how user information was collected online, place limits on the use of consumer data by companies and promote the use of audits and other forms of enforcement to increase accountability.
The new protections would expand on the framework of Fair Information Practice Principles that address data security, notice and choice — or the privacy policies many users agree to on Web sites — and rights to obtaining information on the Internet.
“The simple concept of notice and choice is not adequate as a basis for privacy protections,” said Daniel J. Weitzner, the associate administrator for the office of policy analysis and development at the Commerce Department’s National Telecommunications and Information Administration.
Consumer and privacy advocates said they were encouraged by the idea to expand on the fair practice principles. The report comes at a time when Internet privacy is a big priority in Washington with the release of a similar report by the Federal Trade Commission this month, the establishment of a White House subcommittee on privacy and Internet policy and the pending revision of the privacy directive of the European Union.
The F.T.C., in its report on online privacy this month, also called for improvements to the practice principles, but focused on installing a “do not track” mechanism that would allow computer users to opt out of having their information collected surreptitiously by third-party companies.
That recommendation caused concern in the online advertising industry, which has said that such a mechanism would hamper the industry’s growth and could potentially limit users’ access to free content online.
The task force report made little mention of a “do not track” option, but its members did recommend the creation of voluntary codes of conduct that would address emerging technologies and issues not covered by an expanded set of practice principles. The codes would be created by technology companies in the industry and would be approved by the Federal Trade Commission.
The new Privacy Policy Office proposed by the task force would work with the administration, the F.T.C. and other agencies on issues surrounding international and commercial data privacy issues. The office would not have enforcement authority.
“America needs a robust privacy framework that preserves consumer trust in the evolving Internet economy while ensuring the Web remains a platform for innovation, jobs and economic growth,” the commerce secretary, Gary F. Locke, said in a statement. “Self-regulation without stronger enforcement is not enough. Consumers must trust the Internet in order for businesses to succeed online.”
During a conference call after the announcement, however, representatives from the World Privacy Forum, the Consumer Federation of America and other organizations said they were concerned that a privacy policy office would be part of the Commerce Department and not an independent agency.
The report recommends that the F.T.C. remain the lead enforcement agency for consumer privacy issues. It also recommends that the United States continue to discuss privacy frameworks with other countries.
“Today’s report is a road map for considering a new framework that is good for consumers and businesses,” Mr. Locke said. “And while our primary goal is to update the domestic approach to online privacy, we are optimistic that we can take steps to bridge the different privacy approaches among countries, which can help us increase the export of U.S. services and strengthen the American economy.”
Mike Zaneis, the senior vice president and general counsel at the Interactive Advertising Bureau, said he was encouraged by the report. “It gives us an opportunity as an industry to prove that we can continue to move the ball forward on consumer privacy,” Mr. Zaneis said.
According to a statement issued by the department, global online transactions are estimated at $10 trillion a year. Data from a 2009 study commissioned by the Interactive Advertising Bureau reported that interactive ads were responsible for $300 billion of economic activity annually.
The department will seek comment on the report through Jan. 28 and will publish questions from the report next week. No date has been set for the publication of final recommendations.