Efforts by online companies to regulate privacy practices themselves have worked "effectively," Chris Babel, TRUSTe's CEO, told members of the Internet subcommittee of the U.S. House of Representatives Judiciary Committee. "You've seen self regulation accelerate quite rapidly in the last few years," Babel said.
Several lawmakers and other witnesses disagreed, saying Congress should enact online and mobile privacy legislation that creates baseline rules for websites and mobile app developers. Representatives of eBay and the Association for Competitive Technology (ACT), a trade group representing mobile app developers, both called for a new online privacy law.
U.S. agencies should also take strong enforcement actions against companies that violate privacy standards because enforcement serves as a deterrence, said Morgan Reed, ACT's executive director.
Several lawmakers, both Republicans and Democrats, questioned self-regulatory efforts. "I have a little problem with the fox setting rules for the hen house," said Representative Thomas Marino, a Pennsylvania Republican.
Babel and some committee members pointed to several industry efforts to enforce online privacy standards, including TRUSTe's privacy certification and the Digital Advertising Alliance's privacy program. In addition, the U.S. National Telecommunications and Information Administration will to work on privacy standards beginning in July.