Rules boost online privacy

New regulations will curb how service providers collect and use customer information

“There is somuch sensitive data out there about consumers that can potentially be monetized by an ISP.” — Paul Stephens, director of policy advocacy with the San Diego-based Privacy Rights Clearinghouse

The Federal Communications Commission on Thursday adopted landmark consumer protections with far-reaching restrictions on how internet service providers collect, use and share information about their customers.

The new regulations mean internet service providers such as Comcast and AT&T will be required to obtain customer permission before gathering and using personal information, including browsing activity.

“The rules specify categories of information that are considered sensitive, which include precise geolocation, financial information, health information, children’s information, Social Security numbers, web browsing history, app usage history and the content of communica-

tions,” the FCC said in announcing the regulations.

Customers would have to “opt-in” for ISPs to gather and use such details. At present, internet service providers can mine user information unless customers tell them to stop.

ISPs still would be able to obtain and share certain “nonsensitive information” unless a customer decides to opt out. That includes email addresses or the service tier the customer is using.

“The rules ensure broadband customers have meaningful choice, greater transparency and strong security protections for their personal information collected by ISPs,” the FCC stated.

The FCC’s new regulations will greatly benefit consumers, said Paul Stephens, director of policy advocacy with the San Diego-based Privacy Rights Clearinghouse.

“Look at what a typical consumer does online — all the activities, the breadth of information, including your click stream, the sites you visit, the information you provide when you sign up for a service, the apps you use, your email activity,” Stephens said.

That equates to a staggering level of information.

“There is so much sensitive data out there about consumers that can potentially be monetized by an ISP,” Stephens said.

Comcast, a major provider of broadband internet in the Bay Area and the region’s biggest cable television company, lambasted the FCC’s 3-2 decision to impose the new rules.

“A divided FCC chose a path that, unfortunately, will likely do more harm than good for consumers, competition and innovation in the all-important internet ecosystem,” David Cohen, Comcast’s chief diversity officer, wrote in a blog post.

But some observers were skeptical that the FCC rules would crimp the creation of cutting-edge technologies.

“With cable companies, we want them to provide affordable and fast broadband service,” said Ben Bajarin, a principal analyst with Campbell-based market research firm Creative Strategies. “It’s hard to conclude that these restrictions would stifle innovation.”

Consumers said the new regulations will provide important privacy protections.

Thomas Norman, a Comcast customer from San Francisco, said he generally supports the FCC regulations, but he also raised concerns about the potential for the rules to go awry.

“My reaction is positive,” Norman said. “I don’t know if there might be some unintended consequences, because regulations often backfire. But I have somewhat of a concern about how technology companies gather a tremendous amount of information about my life and my habits, just from things I’ve purchased on the internet and possibly information that was shared that I had presumed would be kept private.”

Greg Hall, a Sunnyvale resident and Comcast customer, said he worries that both Comcast and his previous internet service provider, AT&T, have collected mountains of data about his online activities. Big internet companies use the information to shower consumers with targeted advertising.

“It’s very Big Brotherish. I’m very concerned about it,” Hall said. “All that data they can collect is very worrisome.

“I don’t feel it’s totally malicious,” he said. “They are using this information to try to figure out ways to make money, but it’s important to have these safeguards.”

Despite the new rules, consumers still must navigate through a thicket of enticing apps that can track their digital and real-world activities. An app as innocuous as Google Maps can keep close tabs on your location.

What’s more, the FCC rules don’t apply to the advertising powerhouses of the tech world, such as Google, Facebook, Twitter and Apple. The FCC can’t regulate web companies. Its new rules apply only to telecommunications companies.

Comcast and other internet and cable providers won’t be required to curb the information they collect from customers who use their TV services. The restrictions apply only to internet activity.

And consumers will still have to opt out of certain elements of data gathering if they wish to stop those activities by their internet providers.

“It’s a terrific first step, but there could still be problems in making a distinction between sensitive and nonsensitive information,” said Stephens, of Privacy Rights Clearinghouse. “There are shades of gray here. But this does a lot to protect the privacy of consumers online.”