this will give interested parties including international regulat regulators, our approach to cross border transactions and others engaged in transactions with u.s. parties confidence. there are other gaps in the regulatory system that threaten investors that we are working to address. one high profile area of interest is money market funds. as you know when the prime reserve fund broke the buck, it set off a run so serious that the federal government was forced to step in and guarantee a multi-trillion dollar industry. it was a shock that was felt throughout the market and compelled us to take action, so two years ago, we adopted regulations making the amount of funds that they can hold more

fluid and risky. i said that we needed to do more. money market funds remain vulnerable to runs and a sudden deterioration of quality of holdings. we need to move forward with concrete ideas to address the structural risks. we have spent a lot of times reviewing outreach. and there's two serious options that we are looking at. first, float the net asset value. and second, put in place, capital requirements combined with limitations and fees on redemptions. it's hard to miss the cry in the industry against the approaches. but the fact is, investors have been given a false sense of security by money market funds' sponsored support and the one time treasury guarantee. funds are still vulnerable to the realty that that single money market fund breaking of the buck, can trigger a

destabilized fund. if that happens, the government will not have the tools it had in 2000 and eight p then, treasury was used to stabilize the fund. but the tarp legislation was passed and that option is eliminated. to the extent there's a deadline, pressure weshds feel about lying on borrowed time. the president's report was issued in october, 2010. we have had extensive public comment, we held a round table with the council on money market funds and systematic risk last may, it's time to take the next step. finally, we are working to improve the sec's capacity to regulate and investigate. and so another major initiative is the consolidated audit trail. standardized reporting across

trading platforms would seem to be an obvious move. serving investors on two levels. aiding in the investigation of suspicion trading activities, insider trading and market manipulation and allowing more rapid and accurate reinstruction of unusual market events. the complexity of the under taking however has made it necessary to have a detailed and extended rule making process. including a thoughtful review of the many comments received since proposing the system's creation, the contours of the regulation are being finalized and will be considered by the full commission. regardless of the detail the broader result must give the ability to reconstruct trading quickly. the initial proposing will be to track orders and trades in the equity markets i believe it

should be expanded to other markets. it's important we get a struck which you are in place sooner rather than later so that the heavy lifting of working through the technical knew answers of the system can begin. we expect to adopt a final rule in the months ahead and after that anticipate that the exchanges will be required to submit a detailed blue print. i'm proud to have the opportunities to work at the sec, during an exceedingly productive period in our history. the agency has accomplished much and we are on the verge of further critically important rule makings that will enhance the sec's ability to oversee markets and pursue investors andand -- investors interests. our improvements in the culture, management, approach and

attitude of the agency as an institution and the staff who make it work, improvements that all regulatory agencies should under go and that will allow the sec to continue to function at a high level in the years ahead. no one can predict the new challenges or what fraud and manipulators will try down the road. whatever happens, the sec is now materially better able to enforce the law and to identify and manage threats t burst of activity is just a result of circumstances. a reaction to the financial crisis. it's an indication that the sec is evolving in sfep with rapidly changing -- in step with rapidly changing markets. it's been a busy time but there's a lot of proud people as they finish what is on their plates today are looking ahead to an equally productive future. thank you.

>>. [ applause ] >> thank you very much, chairman shall peer oh. >> i hope that as we move forward in this world, there are a number of problems that we have to resolve. problem of genocide in darfur and solutions are going to have to be be the answer in the future as we saturday to deal with the problems coming. >> congressman donald payne was the first to serve the house from new jersey, elected in 1988, he was the former head of the congressional black caucus, and served on committees of affairs, watch his speeches from the house floor and other

appearances archived and searchable and online at the c-span video library. the consumer privacy bill of rights was issued by the president to give more control over data that is used on the internet. we will hear from secretary john bryson. this is about 35 minutes. [ applause ] >> good afternoon everyone, we could not start until it was afternoon. i hope by now you have memorized the consumer privacy bill of rights and you have internalized it completely and we can just go home. so, i just want to thank you you all for coming. we have a really extraordinary and wonderful lineup of speaker says we will hear first from the director of the international

council, from the council to the digital advertising alliance, and from the chair of the federal trade commission and finally from the federal policy director of consumers union. we are thrilled to have them all, and i'll turn it over to gene so we can get started. thanks. [ applause ] >> thank you very much. thanks for being here. obviously i want to thank a few people. i want to thank our great science adviser, john holdren, our former cto there, and i want to thank secretary bryson and -- for his leadership on this and so many things since he came and i hope i'm not breeching the independence of the ftc to thank

chairman liebowitz too, i thinking find ways to stick it tos us. i want to thank congress woman, and we are looking forward to working with her on advancing this blue print and thank the people who were kridriving forc behind it. larry strict land for leadership in driving this through. and obviously the industry leaders and consumer groups that made this kind of announcement possible. i have a few speakers, let's make some of tbasic points, one as we ask ourselves, as we

should economically what can we do that lays the foundation for growth and shared prosperity in our country? you ask what you can do to lay the foundation for the private sector, and citizens to create that type of growth and prosperity and one of the things that you -- is fitting for the role of government, a side from laying the foundation for a excellent infrastructure and the skies of our people, is trust. is trust in engages in commerce and trust in the ways that we communicate. it's that trust in the quality of on products, the trust in the reliability of the occcurrancy,l of the things that makes us tray for granted that we exchange -- exchanges that take place and the commerce that helps drive

the economy. and there's no question that a critical part of that trust is the trust of flow of information between -- between any of us and the intended recipient of our communication. we have taken for granted that we have laws that protect our communication through the mail. through the phone. you are not allowed to open someone else's mail and those laws that protect the privacy of those communications we take for grantsed but the confidentiality is fundamental to the trust that helps drive, not only our participation in democracy, our ability -- desire to weigh in on public, on matters and personal communications but also in

economic commer commerce and exchange, and as we move forward as technology moves forward that we ensure that that basic sense of trust is part of the technologies of the future and the present. this is not a group that one needs to tell how critical now the internet is. not only to our personal communications to our democratic communications to our economic communications as well. i could read no shortage of statistics that danny gave me of the 15% of gpd created by the internet from '04 to '09. of the importance of internet revenue of even small companies starting up now, of the hundreds of thousands of people involved

in app innovation that are part of our economy and driving our economy. and so, it is not only appropriate, it is necessary for us to build in that level of trust into the internet, and as quickly as we can, the president said, never has privacy been more important than today in the anyone of the sbrinternet. the internet has a you -- that has allowed an explosion of commerce and creating jobs of the future. much of the innovation is because of uses of innovation, so it's on uses to apply our -- us to apply our timeless security standards to our times.

this is an area like many areas where legislation and appropriate, is needed is fitting. but it is also an area like so many where we do not have to wait for legislation. where we as citizens have an ability with government and industry and consumer kbrups to come together and make progress on our own. ands in a terrific example, i believe, of on that. the -- what we are doing today is a, for us, a we can't wait effort. we are unveiling the consumer bill of rights, which is a blue print to improve consumer privacy protections, and to spur innovation, and i know others will speak more about that, secretary bryson will, and second we are pleased on

recognize the digital advertising alliance to provide users an easy, one click way to opt out of online tracking, if they want to avoid targeted advertising. today, the hundreds of companies that are part of the alliance are using do not track technology with help from the worldwide web, to make it easier for users to opt out of tracking if they choose. this is the type of example of voluntarily terry industry action to increase the trust in the internet that is essential to the development of our economy going forward and makes the progress and essentially lightens the burden of the government to mandate it. so we are committed to these privacy protections as a component of the trust in the internet. again as if president wrote, one hinge should be clear, even

though we live in a world in which we share personal information more freely than in the past, we must rejection that privacy is not a value. it's been at the heart of our democracy since the beginning and now we need i had more than ever. with that, it's my pleasure to introduce our secretary of commerce, john bryson. [ applause ] >> well, it's a pleasure. a great pleasure really to be with all of you here in the room today and i know that there are many listening in, deeply concerned and interested in the important subject. i thank all of you here, as gene did and it was in some ways a wonderful coincidence, i do want to say that in my years in my private life and what i did

polygra prior to coming here, be i had many opportunities to meet with congress woman mary bono mac. and we worked together across issues in southern california. and issues that pertain to water in many subjects, i know and i do know that she is a sound, very thoughtful legislator. so it's a pleasure so see. [ applause ] we have not seen each other for some time, so it was a great treat right away to see each other. well, i think you know that the work that we are addressing today is really the result of bringing together brood reputation of privacy, experts, of consumer groups. internet companies, and many other says and i thank you for being us. as we all know millions

americans shop, sell, bank, learn, talk, and work online. and in fact, we are now in a situation in which it has been had stunning growth. the online retail sales in the united states now just that portion, of sales are now nearly $200 billion annually. but the challenge here is that we have all seen stories of consumer data being lost, compromised or stolen and privacy and trust online, i think has never been so important. never been more important. to both businesses and consumers than it is now. and increasing mb of consumers are concerned about their information being safe. and also being used only as they

intend it. today, we need strong online protections for consumers, and at the same time, we need to provide businesses with principals to help guide their privacy policies and decisions. and we need this now. we cannot wait. the consumer privacy bill of rights will help protect consumers personal data, provide businesses with better guidance on how to meet consumer's privacy expectations, and ensure that the internet remains a truly strong platform for commerce and innovation and these groups have been he created from contributions from many areas and including seven

basic protections that consumers should be able to expect from companies. let me take i'll do it one by one, but very briefly. number one, individual control and what kinds of data companies collect. number two, transparency in how those companies plan to use that data. third, respect for the context in which the data is provided and disclosed. fourth, secure and responsible handling of that data. fifth, ability of consumers to access and ensure the accuracy of their own data. six, reasonable limits on the personal data that online companies try to collect and retain. and then, seventh, accountability from companies for strong privacy measures. we'll be working with congress

to implement this through legislation, but we're also moving forward now. we feel we just cannot wait. the commerce department's national telecommunications information administration, nti, i see larry strickland, our leader there, that team will convene businesses, consumer groups and other stakeholders. these stakeholders will work towards consensus on codes of conduct based on this blueprint. what we like about this approach is it gives us more speed and flexibility than traditional regulatory processes. from there, companies can voluntarily choose whether to adopt these principles. as a former ceo, i know that many of them will have an

incentive to do. i had that experience. in many cases i think a meaningful fraction of many businesses customerless want to seek out strong privacy protections. already it is great to see that commitments are being made to tools that allow for more individual control, and as gene said, this includes the digital advertising alliance and its community of internet advertising and media companies. and then, finally, we envision that this plan will be of great interest internationally. we plan to support broad cooperation and consensus on this issue. e-commerce, after all, is global by nature. so in closing, i simply want to underscore that this blueprint is an important step towards fostering a culture of trust and

respect for privacy across america's businesses and consumers. so, thank you very much, and i'll move on with the introductions. special thanks to job liebowitz. he doesn't follow but i wanted to recognize his meaningful place here, and then i want to turn now to stu hingis, who is the counsel to the digital advertises and how they've moved this along has all been very important. so, again, thank you all very much. >> well, thank you, and good morning. it's a pleasure to be here and see so many friends and people that have worked on these issues for many years. the digit's advertitch it dump

advertising, it's our pleasure today to have four of the ceos, five ever the ceos, actually, that have led his initiative for the better part of three or four years to get us through all of the different codes that sbhave been in progress. randy rothenberg, nancy hill, the association american advertising agencies, bob leeadis, and larry kimmel of the direct marketing association. their work here and -- mark roman, i don't know if he's here. i think she, of the net advertising initiative. the dea was developed to provide information to consumers that they need to make educated decisions about information practices. the business community over the last two years through the digital advertising alliance has responded to calls from the department of commerce, the ftc

and the congress and developed a self-regulatory principles for online behavioral advertising and multiple -- and multisite data. these are enforcible codes of conduct the type envisioned here today in this announcement that further innovative offerings and universally recognized blue icon we see all over the internet as you surf these days and corresponding choices to consumers regarding collection of web viewing data about them. we're pleased that the achievements and commitments of the dea on privacy are being publicly recognized here today and applaud it by the white house, the department of commerce and the federal trade commission. further, the dea's mission of transparency in choice we are announcing today the dea will immediately begin work to begin browser based header signals to the set of tools by which consumers can exercise their preferences under the dea's principles.

once implemented, consumers through the browser will have the ability to affirmatively choose to exercise choice to multisite web viewing data in its collection. the dea intends to work with browser providers and other dea participant company, the leaders in this base, to develop consistent language across browsers regarding the consumer choice mechanism that will be simple to use and in a clear manner will describe to consumers the effect of exercising such a choice. finally, the associations that convene the dea also look forward to working to ensure proposals that are put forward in the white paper today, which we'll all be reading, and emerge from the multistate process continue the success in providing choice to consumers, while preserving innovative and dynamic offering that they desire. now i'll turn it over to our good friend and leader of the federal trade commission, jon liebowitz.

>> thank you, stu, for your leadership in this area, and what a pleasure it is to be here today to spotlight the efforts of the administration, congress, and not only a sound legislator, mary bono, a leader on privacy as well. federal trade commission, protecting consumer privacy online's in so doing i think all of us promote a thriving internet marketplace that is a cyber hope and really a cyber driver of our economy. now, at the turn of the century, one genius deployed leading edge technology and revolutionary selling tactics to transform the american market for consumer goods. now, before any of the company representatives with us today panics, that larry paige is to get a mention over are bill gates or mark zuckerberg over jeff, the century was the last

century and the genius was henry ford. he said, and i quote -- it's not the employer who papers the wages. employers only handle the money. it's the customer who pays the wages. and he was exactly right. it is all about the consumer. the ftc acknowledged that when we challenged industry to let consumers choose whether they are tracked online and you, the sent sear centuries captain, stepped up. protecting personal data online encourages trust in internet kmors, which in turn fuels growth of the cyber economy and really does pay all of our wages. so we are honored to stand here today with the administration and secretary bryson of the commerce department, with two of my fellow commissioners, eadith ramirez and julie, congress in

involved in extensive research that resulted in a white house consumer privacy bill of rights blueprint. i see the blueprint is gone and it's just the bill of rights and i think that's terrific. and kent and larry are in the awed audience and deserve enormous credit as does danny wiesner there it's a the inception, now here at the birth. yeah. i don't think i'll go further with that analogy. and, really, members of congress on both sides of the aisle and both sides of the capitol from jay rockefeller to joe biden, mary, henry waxman and back to john kerry. so many have demonstrated they understand how important it is that consumers' personal data be treated with care and respect. now, protecting privacy online and off is a central part of the ftc's mission. we have gone after dozens of