National Industry Associations, Local ISP Divided Over Maine Privacy Bill
It’s unnecessary for Maine to pass privacy legislation regulating ISPs because they’re subject to FTC enforcement, NCTA and CTIA representatives told state legislators Wednesday. A local ISP and consumer advocates urged lawmakers pass a bill prohibiting state broadband providers from using, sharing or selling access to state customer data without expressed consent. The Senate Energy, Utilities and Technology Committee considered legislation from Sen. Shenna Bellows (D).
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Despite the regulatory burden on ISPs, Maine’s GWI CEO Fletcher Kittredge “strongly” supports the bill. The only burden is the restriction against selling customer data without consent, he said: “This restriction is no burden to companies with even a small desire to serve the public good.”
The bill is unnecessary because of FTC enforcement, said Davis Wright's Nancy Libin on behalf of NCTA. The former Obama administration DOJ chief privacy officer said the bill would impede industry from providing consumers with innovative services. FTC Chairman Joe Simons also recently announced an economic study of ISPs (see 1903270055). The FTC can bring action against ISPs if they fail to uphold promises they keep in their privacy policies, she said. Industry reps argued against a patchwork of state laws.
State attorneys general can also bring enforcement against ISPs that don’t fulfill promises in their privacy policies, said CTIA Senior Director-State Legislative Affairs Bethanne Cooley. She criticized the bill being aimed at one segment of the internet economy, saying it won’t stop others from targeting consumers with ads.
Limiting one actor’s access to the internet economy is of limited value, said Maine Chamber of Commerce Senior Government Relations Specialist Ben Gilman. Many states are taking a step back to understand consumer protection, like Vermont and Rhode Island, which is a better approach, he said.
Providers wouldn't be allowed to penalize customers or refuse service to those who don’t consent, according to the bill, which would require “reasonable” protection of data. ISPs are the conduit for all information flows and have unique and unfettered access to our lives, Bellows said. Phone utilities have never been allowed to record and use phone conversations, and the U.S. Postal Service doesn’t own the information delivered through the mail, she said.
ISPs arguing against a patchwork of state regulations is like pushing Humpty Dumpty off the wall and complaining that he’s shattered, said Georgetown Law Institute for Technology Law & Policy Fellow Gigi Sohn. She blamed ISPs for driving the effort to repeal FCC 2016 broadband privacy rules, which Maine’s legislation is based upon. There’s an “enormous gap” left by the federal government, which isn’t protecting the privacy of internet users, said American Civil Liberties Union of Maine Advocacy Director Oamshri Amarasingham.