I've Been Mugged Blog: GOP Legislation In Congress To Revoke Consumer Privacy And Protections

"Republican Senator Jeff Flake, who opposes the Federal Communications Commission's broadband privacy rules, says he's readying a resolution to rescind them, Politico reports. Flake's confirmation to Politico comes days after Rep. Marsha Blackburn (R-Tennessee), the head of the House Communications Subcommittee, said she intends to work with the Senate to revoke the privacy regulations."

Blackburn's name is familiar. She was a key part of the GOP effort in 2014 to keep state laws in place to limit broadband competition by preventing citizens from forming local broadband providers. To get both higher speeds and lower prices compared to offerings by corporate internet service providers (ISPs), many people want to form local broadband providers. They can't because 20 states have laws preventing broadband competition. A worldwide study in 2014 found the consumers in the United States get poor broadband value: pay more and get slower speeds. Plus, the only consumers getting good value were community broadband customers. In June 2014, the FCC announced plans to challenge these restrictive state laws that limit competition, and keep your Internet prices high. That FCC effort failed. To encourage competition and lower prices, several Democratic representatives introduced the Community Broadband Act in 2015.That legislation went nowhere in a GOP-controlled Congress.

Pause for a moment and let that sink in. Blackburn and other GOP representatives have pursued policies where we consumers all pay more for broadband due to the lack of competition. The GOP, a party that supposedly dislikes regulation and prefers free-market competition, is happy to do the opposite to help their corporate donors. The GOP, a party that historically has promoted states' rights, now uses state laws to restrict the freedoms of constituents at the city, town, and local levels. And, that includes rural constituents.

Too many GOP voters seem oblivious to this. Why Democrats failed to capitalize on this broadband issue, especially during the Presidential campaign last year, is puzzling. Everyone needs broadband: work, play, school, travel, entertainment.

Now, back to the effort to revoke the FCC's broadband privacy rules. Several cable, telecommunications, and advertising lobbies sent a letter in January asking Congress to remove the broadband privacy rules. That letter said in part:

"... in adopting new broadband privacy rules late last year, the Federal Communications Commission (“FCC”) took action that jeopardizes the vibrancy and success of the internet and the innovations the internet has and should continue to offer. While the FCC’s Order applies only to Internet Service Providers (“ISPs”), the onerous and unnecessary rules it adopted establish a very harmful precedent for the entire internet ecosystem. We therefore urge Congress to enact a resolution of disapproval pursuant to the Congressional Review Act (“CRA”) vitiating the Order."

The new privacy rules by the FCC require broadband providers (a/k/a ISPs) to obtain affirmative “opt-in” consent from consumers before using and sharing consumers' sensitive information; specify the types of information that are sensitive (e.g., geo-location, financial information, health information, children’s information, social security numbers, web browsing history, app usage history and the content of communications); stop using and sharing information about consumers that have opted out of information sharing; meet transparency requirements to clearly notify customers about the information collection sharing and how to change their opt-in or opt-out preferences, prohibit "take-it-or-leave-it" offers where ISPs can refuse to serve customers who don't consent to the information collection and sharing; and comply with "reasonable data security practices and guidelines" to protect the sensitive information collected and shared.

The new FCC privacy rules are common sense stuff, but clearly these companies view common-sense methods as a burden. They want to use consumers' information however they please without limits, and without consideration for consumers' desire to control their own personal information. And, GOP representatives in Congress are happy to oblige these companies in this abuse.

Alarmingly, there is more. Lots more.

The GOP-led Congress also seeks to roll back consumer protections in banking and financial services. According to Consumer Reports, the issue arose earlier this month in:

"... a memo by House Financial Services Committee Chairman Rep. Jeb Hensarling (R-Tex), which was leaked to the press yesterday... The fate of the database was first mentioned [February 9th] when Bloomberg reported on a memo by Hensarling, an outspoken critic of the CFPB. The memo outlined a new version of the Financial CHOICE Act (Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs), a bill originally advanced by the House Financial Services Committee in September. The new bill would lead to the repeal of the Consumer Complaint Database. It would also eliminate the CFPB's authority to punish unfair, deceptive or abusive practices among banks and other lenders, and it would allow the President to handpick—and fire—the bureau's director at will."

Banks have paid billions in fines to resolve a variety of allegations and complaints about wrongdoing. Consumers have often been abused by banks. You may remember the massive $185 million fine for the phony accounts scandal at Wells Fargo. Or, you may remember consumers forced to use prison-release cards. Or, maybe you experienced debt collection scams. And, this blog has covered extensively much of the great work by the CFPB which has helped consumers.

Does these two legislation items bother you? I sincerely hope that they do bother you. Contact your elected officials today and demand that they support the FCC privacy rules.

Posted at 09:00 AM in Behavioral Advertising, Federal / U.S. Government, Government, Internet Access, Legislation, Mobile, Privacy | Permalink | Comments (1)