Commercial Data Privacy and Innovation in the Internet Economy: A Dynamic Policy Framework

The Internet is an extraordinary platform for innovation, economic growth, and social communication. Using the Internet, entrepreneurs reach global markets, political groups organize, and major companies manage their supply chains and deliver services to their customers. Simply stated, the Internet is becoming the central nervous system of our information economy and society. Over the last 15 years, personal computers, mobile phones, and other devices have transformed how we access and use information. As powerful, exciting, and innovative as these developments are, they also bring with them new concerns. New devices and applications allow the collection and use of personal information in ways that, at times, can be contrary to many consumers' privacy expectations. Addressing these issues in a way that protects the tremendous economic and social value of the Internet without stifling innovation requires a fresh look at Internet policy. brings together the technical, policy, trade, and legal expertise of the entire Department. The following report—or green paper—recommends consideration of a new framework for addressing online privacy issues in the United States. It recommends that the U.S. government articulate certain core privacy principles—in order to assure baseline consumer protections—and that, collectively, the government and stakeholders come together to address specific privacy issues as they arise. We believe this framework will both improve the state of affairs domestically and advance interoperability among different privacy regimes around the world so that, globally, Internet services can continue to flourish. The report represents the collective effort of numerous staff pulled from my office and across the Department. It could not have been developed without unparalleled teamwork ; in particular, among staff of the National Telecommunications and Information Administration, the International Trade Administration, and the National Institute for Standards and Technology. I am grateful for the extensive investment of executive time and resources by Department leadership. In particular, General Counsel Cameron Kerry has been a leader of the IPTF and played an instrumental role in the formulation of this green paper. 142 tor, has helped convene the Department's IPTF and provided keen insights and leadership on commercial data privacy policy. Finally, I want to thank the respondents to our Privacy and Innovation Notice of Inquiry and the many participants in our outreach meetings. The report completes just the first phase of this inquiry. For the undertaking to succeed, we will need your ongoing participation and contributions. 143 Foreword The Internet and information technology have become …