1 00:00:00,080 --> 00:00:02,880 Speaker 1: Now it's time for our daily Bloomberg Lab Brief, exploring 2 00:00:02,960 --> 00:00:05,440 Speaker 1: legal issues in the news and Today, Bloomberg La host 3 00:00:05,480 --> 00:00:08,680 Speaker 1: Joan Grasso and Greg Sture discuss a recent House vote 4 00:00:08,720 --> 00:00:12,320 Speaker 1: to stop certain f SEC Internet privacy protections. They speak 5 00:00:12,360 --> 00:00:16,040 Speaker 1: with Fred Campbell, former chief of the FCC's Wireless Bureau 6 00:00:16,160 --> 00:00:19,960 Speaker 1: and Director of Technology, and Katherine Sandoval, a professor at 7 00:00:20,000 --> 00:00:24,279 Speaker 1: Santa Clara University Law School. Katherine, just give me the 8 00:00:24,360 --> 00:00:27,000 Speaker 1: basic explanation of the state of the law right now. 9 00:00:27,040 --> 00:00:29,080 Speaker 1: So if I'm I'm on the Internet and I do 10 00:00:29,120 --> 00:00:32,839 Speaker 1: a search for something, how much privacy can I expect 11 00:00:33,159 --> 00:00:36,280 Speaker 1: in what I do? So the SEC rules that would 12 00:00:36,320 --> 00:00:39,640 Speaker 1: have increased protections in privacy had not fully gone into 13 00:00:39,720 --> 00:00:44,440 Speaker 1: effect because of the requirements of Federal Register publication, and 14 00:00:44,479 --> 00:00:49,000 Speaker 1: then there's which often results in the delay. So essentially, 15 00:00:49,120 --> 00:00:55,760 Speaker 1: under our current today privacy rules, actually consumer privacy rules 16 00:00:55,800 --> 00:01:00,240 Speaker 1: are very much up in the air, and that's this 17 00:01:00,520 --> 00:01:05,080 Speaker 1: FCC will would have addressed. It would have created basically 18 00:01:05,080 --> 00:01:08,920 Speaker 1: the obligation for the Internet service providers, the ones that 19 00:01:09,000 --> 00:01:12,280 Speaker 1: you use to get onto the Internet, UH to require 20 00:01:12,400 --> 00:01:16,600 Speaker 1: your consent before they could do things like sell your 21 00:01:16,640 --> 00:01:21,760 Speaker 1: search history and sell other personally identifying information up to 22 00:01:21,840 --> 00:01:25,560 Speaker 1: and including social security numbers. FRED. The bill seems to 23 00:01:25,680 --> 00:01:30,000 Speaker 1: view a consumer's data as property of the Internet providers. 24 00:01:30,160 --> 00:01:34,800 Speaker 1: How do the Republicans justify allowing Internet providers to sell 25 00:01:34,920 --> 00:01:38,560 Speaker 1: your personal information? Yeah? So, to be clear, I think 26 00:01:38,600 --> 00:01:42,520 Speaker 1: the congressional resolution was really about one issue, and that's 27 00:01:42,600 --> 00:01:47,480 Speaker 1: this opt in versus opt out. So the FTC regulated 28 00:01:47,560 --> 00:01:52,320 Speaker 1: both providers, that's Google, Yahoo and the like and I 29 00:01:52,560 --> 00:01:56,840 Speaker 1: s ps UH both under its privacy framework up until 30 00:01:57,040 --> 00:02:02,000 Speaker 1: you know, last year, and the QC hasn't we applied 31 00:02:02,000 --> 00:02:04,480 Speaker 1: and opt out approach. I think most people don't even 32 00:02:04,480 --> 00:02:07,040 Speaker 1: know how to opt out. What's the justification for this? 33 00:02:07,400 --> 00:02:11,880 Speaker 1: The main justification is stay honest and competitiveness. There are 34 00:02:12,000 --> 00:02:16,200 Speaker 1: companies out there, Google which currently collect third party web 35 00:02:16,240 --> 00:02:19,560 Speaker 1: browsing data through their double Click subsidiary. They do that 36 00:02:20,040 --> 00:02:22,800 Speaker 1: if you visit the New York Times, for example, which 37 00:02:22,800 --> 00:02:26,320 Speaker 1: has a relationship with double Click, Google can track which 38 00:02:26,919 --> 00:02:29,720 Speaker 1: articles the consumer reads on the New York Times when 39 00:02:29,760 --> 00:02:32,840 Speaker 1: it combines that data with its own user data. UH. 40 00:02:32,919 --> 00:02:35,280 Speaker 1: And it does this targeted at the I s p 41 00:02:35,440 --> 00:02:38,600 Speaker 1: s would like to compete in that market and having 42 00:02:38,639 --> 00:02:40,760 Speaker 1: a different set of requirements on that that makes it 43 00:02:40,800 --> 00:02:44,240 Speaker 1: harder for them to compete, and as Fred Campbell, former 44 00:02:44,320 --> 00:02:47,639 Speaker 1: chief of the FCCS Wireless Bureau and Director of Technology 45 00:02:47,680 --> 00:02:51,639 Speaker 1: and Catherine Senterval, a professor at Santa Clara University Law School, 46 00:02:51,880 --> 00:02:54,600 Speaker 1: speaking at Bloomberg Law host Jing Grosso and Greg Sture. 47 00:02:54,840 --> 00:02:57,080 Speaker 1: You can listen to Bloomberg Law weekdays at one pm 48 00:02:57,120 --> 00:03:01,080 Speaker 1: Wall Street Time here on Bloomberg Radio, and that's this 49 00:03:01,160 --> 00:03:03,760 Speaker 1: morning's Bloomberg Law Brief. 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