Privacy matters: Consumers beware

The cornerstone of what the CDT and other privacy groups are advocating is a strict opt-in policy that doesn't require consumers to wade through complicated legalese and fine print, instead allowing them to take action to prevent their personal information, buying behavior or online activity from being collected and distributed.

“The catchphrase we use is ‘user empowerment,’” Meeks said. “We want people to be able to have control over any of the information that is going to be picked up by a third party. A lot of people don't mind their information being picked up or what kind of sites they go to online being shared if it means they get information they want. If you are an avid golfer and go to golf.com and subscribe to Golf Magazine, you may welcome pop-up ads that tell you about good buys or vacation resorts. What you don't want is somebody trying to sell you golf carts or someone trying to sell you a house on a golf course.”

By having strict opt-in policies, providers also could protect themselves, Meeks said. Telecom service providers are restricted in their use of customer proprietary network information (CPNI), which includes customer data such as the amount and type of services used. Local, long-distance and wireless providers are prohibited by the Telecommunications Act of 1996 from using that information without customer permission.

“Companies like Verizon and AT&T who are also ISPs are starting to walk in murky waters because they do have privacy concerns placed on them because of CPNI,” Meeks said. “It's not really clear how the CPNI rules wash over into their ISP business. Most telecoms, because it is a gray area, err on the conservative side.”

Because ISPs and the technology companies that back them know what's involved, it would be preferable if the industry itself designed and built in adequate protections for consumers, EFF's Tien said.

"The industry needs to respect people's privacy more,” he said. “They know much more about what they are doing and what they are protecting. They need to take the first proactive step to construct viable rules of the road.”