Dive Brief:
- FCC Chairman Ajit Pai said broadband privacy regulations put into place last year under the Obama administration will be blocked as reported by media outlets including TechCrunch and CNBC.
- The privacy rules were adopted in October and applied to internet service providers, requiring them to obtain opt-in in order to collect and share data such as location, children’s information and app usage history.
- In an explanation for the move, Pai had previously pointed out the FTC has similar rules already in place making the FCC’s action redundant.
Dive Insight:
The ruling being blocked was passed last fall to protect consumers' sensitive information, putting the onus on broadband service provides to collect opt-in permission to collect data that had previously been covered by opt-out standards. The marketing industry vocally opposed the ruling at the time because it would make it more challenging to deploy targeting and personalized marketing.
After the FCC announcement, FCC Commissioner Clyburn and FTC Commissioner Terrell McSweeny issued a joint statement that by blocking the privacy rules, the FCC weakens security around consumer data and that the FCC should reconsider the move.
Regardless of interagency disagreement about the impact of the move, it was expected as the commission leadership shift after President Donald Trump’s election had already indicated rolling back a number of regulations put into place last year when the agency was led by Tom Wheeler. Along with the privacy rules, net neutrality is another topic named to be on the chopping block.
Along with citing existing FTC privacy rules, Pai has previously stated a belief that all companies in the online space should be subject to the same set of rules. The privacy regulation being blocked would have held ISPs to a higher standard than websites like Google, Facebook or Twitter.
