McCain introduces bill requiring Web sites to disclose privacy policies

By CNN Producer Dana Bash

WASHINGTON (CNN) -- Senate Commerce Committee Chairman John McCain introduced bipartisan legislation on Wednesday aimed at protecting consumer privacy on the Internet.

The measure would require commercial Web sites to reveal exactly what information they collect from customers making purchases online.

McCain, R-Arizona, along with co-sponsors Sen. John Kerry, D-Massachusetts, and Sen. Spencer Abraham, R-Michigan, said that the intent of the legislation is not to regulate the Internet, but to provide protections that would spur electronic commerce.

"The bill that we are introducing today will encourage the skeptics to go online. The legislation will require Web sites to clearly and conspicuously disclose their privacy policies," Kerry said.

"People deserve to know what information may be collected and how it will be used, so they can make an informed decision before they begin to navigate around or shop on a particular Web site," he added.

Lawmakers said the legislation would mandate clear, understandable disclosure of Web sites' privacy policies and require that consumers be able to control whether personal information will be sold to third parties for marketing or other purposes. Under the measure, those who violate the privacy measures would be fined $22,000 for each violation, up to $500,000.

Sen. McCain introduced bipartisan legislation on Wednesday aimed at protecting consumer privacy on the Internet.

Web sites that comply with the regulations would be approved by the Federal Trade Commission, but states' attorneys general would enforce the mandatory disclosure rule.

"Surfing the Web shouldn't require you to share your life story with the world. Internet surfers should know exactly how companies will use the personal information submitted to Web sites," Abraham said in a statement.

McCain held out hope that although there is limited time left in the 106th Congress, he would be able to hold hearings on this measure in September and push it through before the end of the year.

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