Congresswoman Mary Bono introduced the Safe Guard Against Privacy Invasions Act to protect Internet users from downloading unwanted spyware. The bill would force companies to get customer permission before installing the invasive software on their systems.

Spyware is software that companies secretly install to monitor people’s Internet activities and gather personally identifiable information.

“Companies that utilize spyware can sometimes view everything from passwords to credit card numbers of unknowing consumers. This legislation will help prevent such invasions of privacy. Through this bill, users will knowingly agree to the conditions under which spyware operates before it can be installed on their computers,” Bono said.

The legislation requires companies that offer spyware to post an agreement clearly and conspicuously informing the computer user of the presence of spyware and its intended function. Companies would be required to post the mechanism for accepting such an agreement on the same page as the web agreement, and could not load such spyware without obtaining proper consent.

Furthermore, if a software company is installing spyware that collects personally identifiable information, it must post a separate notice stating specifically that it is collecting such information. The user is then required to accept these conditions before it can be installed on the computer.

“The SPI Act helps consumers make more informed decisions about the types of tracking devices they are loading onto their PCs,” Bono said.

In addition, when an organization requests the consent of an Internet user for the purpose of downloading spyware, it would be required to disclose its name, street address and a valid return e-mail address in the agreement.

The bill grants the Federal Trade Commission regulatory authority over the Safe Guard Against Privacy Invasions Act, and imposes civil penalties for those who do not comply with the law, and criminal penalties for those who knowingly violate the law or who collect personally identifiable information without consent.

(via House)