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Broadband privacy rules approved despite industry pushback

Posted at 12:05 PM, Oct 27, 2016
and last updated 2016-10-27 12:48:04-04

NEW YORK (AP) — Federal regulators have approved new broadband privacy rules that make internet service providers like Comcast and Verizon ask customers' permission before using or sharing much of their data.

Under the measure, for example, a broadband provider has to ask a customer's permission before it can tell an advertiser exactly where that customer is by tracking her phone and what interests she has gleaned from the websites she's visited on it and the apps she's used.

For some information that's not considered as private, customers can say they don't want their internet provider to share it, like names and addresses.

The Federal Communications Commission's measure was scaled back from an earlier proposal, but was still criticized by the advertising, telecommunications and cable industries.

Cable and phone companies want to grow revenue from ad businesses of their own — AT&T has said increasing advertising tailored to customers' preferences is one of its goals with its $85.4 billion purchase of HBO, CNN and TBS owner Time Warner; Verizon has bought AOL and agreed to buy Yahoo in order to build up a digital-ad business.

But the new rules could make doing that more difficult. Companies and industry groups say it's confusing and unfair that the regulations are stricter than the Federal Trade Commission standards that digital-advertising behemoths such as Google and Facebook operate under. The FCC does not regulate such web companies.

FCC officials passed the rules on a 3-2 vote, its latest contentious measure to pass on party lines.