Ahead of the Bell: Internet privacy hearing

NEW YORK (AP) — Officials from the Commerce Department and the Federal Trade Commission will headline a House hearing in Washington on Thursday to discuss the Obama administration’s calls for stronger privacy protections for consumers.

Last month, administration officials outlined a proposed “Consumer Privacy Bill of Rights” and urged technology companies, consumer groups and others to jointly craft new protections. Such guidelines will initially be voluntary for companies, but those that agree to abide by them could be subject to sanctions for any violations.

The effort comes as companies have found more sophisticated ways to collect and combine data on people’s interests and habits. The location feature on smartphones and tablet computers adds another dimension to the tracking.

Data collection can help companies improve and personalize services. It can also help advertisers fine-tune messages and reach the people most likely to buy their products and services, often without consumers even realizing it.

Legislation will be needed to implement some aspects of the administration‘s proposal.

The House subcommittee on commerce, manufacturing and trade plans to explore whether the proposal adequately balances privacy and innovation.

Speakers on the schedule include FTC Chairman Jon Leibowitz and Lawrence E. Strickling, assistant Commerce secretary for communication and information. Others include representatives from industry groups and privacy advocates.

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