Alphabet Inc.’s Google and Facebook Inc. would face limits on the online tracking and data sharing that power their advertising businesses under a bipartisan House proposal to establish the nation’s first federal privacy law.
If passed, the measure could become one of the biggest challenges to their crown jewels — in-depth knowledge about their users — and a test of whether their lobbying clout can fend off the threat.The prohibitions could gum up the gears of the vast ad-technology machinery that Google and Facebook have built. Taken together, those new responsibilities and others would make the proposal stronger than a strict new California law, said Rep. Cathy McMorris Rodgers , who helped develop the text.
The companies not only monitor users on their own platforms, but also track consumers on millions of third-party sites. The practice often explains why people see ads for products they’ve looked at elsewhere, often within seconds.The text of the House bill calls for requiring “express, affirmative consent” for such tracking, meaning that consumers can say no and block the companies’ ability to follow their online behavior and collect data on their interests and activities.
Finally, the congressional bill would allow consumers to prevent brands from sending them advertisements even if they’ve already allowed the company to use their information for another reason — such as a mailing address when shopping online.
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