FCC Approves New Customer Privacy Rules for Broadband Providers

Federal telecommunications regulators adopted a scaled-back version of a privacy regulation that would require broadband internet providers to get consumer approval before marketing sensitive information, but the ruling failed to quiet opposition from internet providers and even some firms that aren't covered by the rules.

The Federal Communications Commission on Thursday approved 3-2 new regulations that generally would make companies such as Comcast Corp. and Verizon Communications Inc. receive authorization to sell information like a customer's web-browsing history to a third party.

Internet service providers complained that the rules were too tough, because they are viewed as more restrictive than the privacy rules governing internet companies such as Alphabet Inc.'s Google unit that are now market leaders in monetizing consumers' online data.

For their part, those internet firms worry that the FCC move will lead other federal regulators to toughen restrictions on their operations.

The rules are somewhat more generous to internet providers than an earlier FCC plan.

Still, consumer advocates generally supported the new plan, which is modeled on the longstanding internet-privacy policies of the Federal Trade Commission.

Commissioner Mignon Clyburn said the rules were justified by growing concerns about privacy, spurred in part by data breaches. "Consumers care deeply about their privacy, and so should we," Ms. Clyburn said.

The debate over online privacy protection is likely to continue. Commissioner Jessica Rosenworcel suggested the government form an interagency council to work on harmonizing the current patchwork of rules.

Republicans on the FCC opposed the new rules, arguing that they singled out internet service providers for tougher regulation without justification.

Commissioner Ajit Pai accused the commission majority of "corporate favoritism" benefiting businesses such as Google.

Write to John D. McKinnon at [e-mail]

(END) Dow Jones Newswires

October 27, 2016 12:25 ET (16:25 GMT)

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