Privacy & Information Security Law Blog

On July 19, 2010, Representative Bobby Rush (D-Ill.) introduced a bill "to foster transparency about the commercial use of personal information" and "provide consumers with meaningful choice about the collection, use and disclosure of such information."  The bill, cleverly nicknamed the "BEST PRACTICES Act", presumably intends to set the standards for the use of consumer personal information by marketers.  A similar bill was introduced by Representatives Boucher and Stearns in early May.  Although both proposals would require opt-out consent for online behavioral advertising and express, affirmative consent for the collection or sharing of sensitive information, Rush's bill has a broader definition of "sensitive information" and includes several other key differences.  Perhaps most notably, unlike the earlier draft legislation, Rush's bill features a private right of action that would allow individuals to sue companies that violate the law for up to $1,000 in actual damages, plus punitive damages and costs and attorney's fees.  The bill contains a safe harbor from the private right of action for companies that participate in, and comply with, a self-regulatory "Choice Program" approved by the FTC.  In addition, the bill excludes from its definition of "covered information" any information collected from or about an employee by an employer "that directly relates to the employee-employer relationship."  A hearing on the proposed bill will be held on Thursday July 22, 2010.