Privacy Proposal Draws Opposition From Ad Groups

Advertising lobby groups are preparing to fight a proposed Internet privacy bill that would fine companies, including ad agencies, that mishandle personally identifiable data.

The bill, introduced last Thursday by Senate Commerce Committee Chairman Ernest “Fritz” Hollings, D-S.C., would allow individuals to sue a company and collect $5,000 if that firm used or disclosed “sensitive” information, such as Social Security numbers, financial or health data, and political affiliations, without permission, according to the bill. A hearing on the legislation is scheduled in Congress for this week.

The American Association of Advertising Agencies argues that the bill exposes agencies to liability unnecessarily, as the Federal Trade Commission already has the authority to regulate privacy.