White House drafts privacy bill, angers consumers

Economic Indicators Associated Press

The White House has drafted a bill to encourage U.S. businesses to do more to protect consumer privacy. But privacy advocates are pushing back even before its release because they say it does nothing to hold businesses accountable for misusing a consumer's personal information.

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According to a draft obtained by The Associated Press, the bill identifies seven principals for safeguarding personal data. They include giving Americans the right to access information that technology companies gather online. The bill encourages industries to draft "codes of conduct." And the Federal Trade Commission would be able to take action against a company if it violates its own code.

Among the biggest sticking points for privacy advocates is that the bill would trump state laws, which might be tougher such as California's privacy law.