U.S. seeks input on privacy rules to protect consumer data

People look at data on their mobiles as background with internet wire cables on switch hub is projected in this picture illustration taken May 30, 2018. Picture taken May 30, 2018. REUTERS/Kacper Pempel/Illustration

By David Shepardson

WASHINGTON (Reuters) – The U.S. Commerce Department on Tuesday said it was seeking comments on how to set nationwide data privacy rules in the wake of tough new requirements adopted by the European Union and California this year.

The Senate Commerce Committee has scheduled a privacy hearing on Wednesday with major companies including Alphabet Inc, AT&T Inc, Apple Inc. This summer, the Trump administration held more than 50 meetings with tech companies, internet providers, privacy advocates and others.

Data privacy has become an increasingly important issue since massive breaches compromised the personal information of millions of U.S. internet and social media users, as well as breaches involving large retailers and credit reporting agency Equifax Inc.

Commerce’s National Telecommunications and Information Administration (NTIA) issued the request for comment after noting “a growing number of foreign countries, and some U.S. states, have articulated distinct visions for how to address privacy concerns, leading to a nationally and globally fragmented regulatory landscape.”

The administration said companies and other organizations that use consumer data should be transparent about how they use personal information, individuals should be able to exercise control over personal information and data use “should be reasonably minimized.”

David Redl, who heads NTIA, said “the Trump administration is beginning this conversation to solicit ideas on a path for adapting privacy to today’s data-driven world.”

The Internet Association, which represents more than 40 major internet and technology companies, said this month it backed modernizing data privacy rules but wants a national approach that would pre-empt new regulations in California that take effect in 2020.

California Governor Jerry Brown signed data privacy legislation in June aimed at giving consumers more control over how companies collect and manage their personal information, although it was not as stringent as new rules in Europe.

The European Union General Data Protection Regulation took effect in May, replacing the bloc’s patchwork of rules dating back to 1995.

Breaking privacy laws can now result in fines of up to 4 percent of global revenue or 20 million euros ($23.2 million), whichever is higher, as opposed to a few hundred thousand euros.

Also testifying Wednesday will be Twitter Inc, Amazon.com Inc and Charter Communications Inc to give them “an opportunity to explain their approaches to privacy,” said U.S. Senator John Thune.

Google on Monday said it backed “responsible, interoperable and adaptable data protection regulations” as it offered a list of principles.

(Reporting by David Shepardson; Editing by David Gregorio)

Facebook CEO starts second day of U.S. congressional hearings

Facebook CEO Mark Zuckerberg is surrounded by members of the media as he arrives to testify before a Senate Judiciary and Commerce Committees joint hearing regarding the company’s use and protection of user data, on Capitol Hill in Washington, U.S., April 10, 2018. REUTERS/Leah Milli

By Dustin Volz and David Ingram

WASHINGTON/SAN FRANCISCO (Reuters) – Facebook Inc Chief Executive Mark Zuckerberg started a second day of testimony on Capitol Hill on Wednesday, facing more questions from lawmakers about data privacy at the world’s largest social media network.

The 33-year-old internet magnate, once again wearing a dark suit instead of his usual gray T-shirt, appeared before the U.S. House of Representatives Energy and Commerce Committee, a day after he took questions for nearly five hours in a U.S. Senate hearing.

He navigated through the first hearing on Tuesday without making any further promises to support new legislation or change how the social network does business, foiling attempts by senators to pin him down.

Investors were impressed with his initial performance. Shares in Facebook posted their biggest daily gain in nearly two years on Tuesday, closing up 4.5 percent. They were down slightly in early trading on Wednesday.

Facebook has been consumed by turmoil for nearly a month, since it came to light that millions of users’ personal information was wrongly harvested from the website by Cambridge Analytica, a political consultancy that has counted U.S. President Donald Trump’s election campaign among its clients. The latest estimate of affected users is up to 87 million.

Patience with the social network had already worn thin among users, advertisers and investors after the company said last year that Russia used Facebook for years to try to sway U.S. politics, an allegation Moscow denies.

Lawmakers have sought assurances that Facebook can effectively police itself, and few came away from Tuesday’s hearing expressing confidence in the social network.

“I don’t want to vote to have to regulate Facebook, but by God, I will,” Republican Senator John Kennedy told Zuckerberg on Tuesday. “A lot of that depends on you.”

Zuckerberg deflected requests to support specific legislation. Pressed repeatedly by Democratic Senator Ed Markey to endorse a proposed law that would require companies to get people’s permission before sharing personal information, Zuckerberg agreed to further talks.

“In principle, I think that makes sense, and the details matter, and I look forward to having our team work with you on fleshing that out,” Zuckerberg said.

(Reporting by Dustin Volz in Washington and David Ingram in San Francisco; Editing by Bill Rigby)