WASHINGTON, D.C.—Chairman John D. (Jay) Rockefeller IV today convened a full committee hearing on privacy and data security. The hearing examined how entities collect, maintain, secure, and use personal information in today’s economy and whether consumers are adequately protected under current law. The Commerce Committee heard from representatives from relevant government agencies as well as business and consumer advocate stakeholders.

Witness List:

Panel I

The Honorable Julie Brill, Commissioner, Federal Trade Commission (FTC)

The Honorable Cameron F. Kerry, General Counsel, U.S. Department of Commerce

Mr. Austin Schlick, General Counsel, Federal Communications Commission (FCC)

Panel II

Mr. Scott Taylor, Vice President and Chief Privacy Officer, Hewlett-Packard Company

Mr. Stuart Pratt, President and CEO, Consumer Data Industry Association

Ms. Ioana Rusu, Regulatory Counsel, Consumers Union

Mr. Tim Schaaff, President, Sony Network Entertainment International

Mr. Thomas M. Lenard, Ph.D., President and Senior Fellow, Technology Policy Institute

Key Quotations from Today’s Hearing:

“Poll after poll shows that Americans are increasingly concerned about their loss of privacy; and those same polls show that Americans don’t know what to do about it. It is my intent to change that. I want ordinary consumers to know what is being done with their personal information, and I want to give them the power to do something about it.”

Chairman John D. (Jay) Rockefeller IV

“New online business models such as online behavioral advertising, social networking, interactive gaming, and location-based services have complicated the privacy picture. In addition, the aggregation of data in both the online and offline worlds have in some instances led to increased opportunities for fraud. For instance, entities have used past transaction history gathered from both the online and offline world to sell “sucker lists” of consumers who may be susceptible to different types of fraud. In both the online and offline worlds, data security continues to be an issue. The FTC continues to tackle each of these issues through enforcement, education, and policy initiatives.”

The Honorable Julie Brill, Commissioner, Federal Trade Commission

“Privacy is a key ingredient for sustaining consumer trust, which in turn is critical to realize the full potential for innovation and the growth of the Internet. The technical and organizational complexity of this environment makes it challenging for individual consumers to understand and manage the uses of their personal data even if they are technically adept.”

The Honorable Cameron F. Kerry, General Counsel, U.S. Department of Commerce

"Increased use of personal data in connection with new online and wireless applications is raising serious privacy and security concerns. As the FCC recognized in the National Broadband Plan, successfully addressing these concerns will be critical to increasing adoption and deployment of technologies that benefit consumers, government, and the economy.“

Mr. Austin Schlick, General Counsel, Federal Communications Commission

“We continue to urge policymakers to examine ways to establish baseline federal legislation that will clearly articulate expectations for all organizations. As more and more services are delivered through multiple parties, such as applications on mobile devices, a consistent baseline standard will strengthen the chain of accountability and unify the divergent regulations currently in existence.”

Mr. Scott Taylor, Vice President and Chief Privacy Officer, Hewlett-Packard Company

“Not only do our members’ technologies and innovation protect us and ensure that we are managing risk in this country, but they reduce costs and labor intensity. Risk management is not merely the domain of the largest government agencies or corporations it is available to companies of all sizes thanks to our members’ investments.”

Mr. Stuart Pratt, President and CEO, Consumer Data Industry Association

"While we believe the Commercial Privacy Bill of Rights Act will provide consumers with meaningful choice over how their personal information is collected, transferred, and used, our organization has long supported giving consumers the possibility to opt out of online tracking. That is why Consumers Union also strongly supports Chairman Rockefeller’s Do-Not-Track Online Act of 2011 as an important and necessary component of consumer online privacy policy. The bill would lend the force of law to industry’s self-regulatory efforts by requiring that when a consumer using a Do-Not-Track tool expresses a preference to not be tracked online, companies must respect that choice."

Ms. Ioana Rusu, Regulatory Counsel, Consumers Union

"Almost every day it seems a new story emerges about businesses, government entities, public institutions and individuals becoming victims of this cyber crime wave…If nothing else, perhaps the frequency, audacity and harmfulness of these attacks will help encourage Congress to enact new legislation to make the Internet a safer place for everyone to learn, enjoy entertainment and engage in commerce."

Mr. Tim Schaaff, President, Sony Network Entertainment International

“The privacy and data security debates are extremely important to the future of the digital economy and of innovation in the United States. Unfortunately, they are taking place largely in an empirical vacuum. Without substantially better data and analysis, there is no way of knowing with any confidence whether proposals currently under consideration will improve consumer welfare.”

Mr. Thomas M. Lenard, Ph.D., President and Senior Fellow, Technology Policy Institute

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