Sens. Richard Blumenthal, D-Conn., and Chuck Schumer, D-N.Y. called Sunday for the Equal Employment Opportunity Commission and the Department of Justice to investigate what the lawmakers labeled "a new disturbing trend of employers demanding job applicants turn over their user names and passwords for social networking and email websites." The senators cited recent reports that employers are demanding access to candidates' Facebook accounts as part of the application process, including photos and personal messages that aren't public.
Blumenthal called himself "alarmed and outraged" by the practice and promised to draft new legislation to ban employers from demanding access to applicants' private, password-protected information. Schumer said he was confident the investigation would show the practice of demanding passwords violates federal law.
Facebook chief privacy officer Erin Egan posted a message on Friday warning users not to hand over their passwords. The site has also made such requests a violation of its terms of service.
Quotable: "We commend Sen. Blumenthal, Sen. Schumer and other policymakers for their leadership on this important issue. We firmly believe that you should control what and with whom you share. Under our terms, only the holder of the email address and password is considered the Facebook account owner. We also prohibit anyone from soliciting the login information or accessing an account belonging to someone else." — Facebook spokesman IPO Bill Set to Pass in House on Tuesday: CQ's Ben Weyl reports the House is poised to pass legislation tomorrow that would loosen securities regulations and make it easier for smaller firms to issue securities and raise money. The legislation (HR 3606) passed the House on March 8 and gained the Senate's approval last week, following an amendment that would add some restrictions on crowdfunding, or raising money from a pool of investors using the Web or other means. Under the amendment, anyone acting as a crowdfunding intermediary would have to register with securities regulators. The bill would also raise the threshold for number of shareholders before companies would have to register with securities regulators from 500 to 2,000.House Republicans have indicated they are willing to accept the Senate's changes, and in a sign of confidence, House leaders decided to vote under an expedited procedure known as suspension of the rules, which requires a two-thirds majority for passage. The bill passed the House overwhelmingly by a vote of 390-23 the first time around and it has gained the White House's support, adding to the likelihood it will pass Tuesday. The GOP has touted the bill as a job creation measure and fought back other attempted amendments in the Senate last week in hopes of avoiding the need for a conference committee.
DHS to Issue Safety Act Seals: CQ Homeland Security reports the Department of Homeland Security's Science and Technology directorate released seals over the weekend for companies that provide anti-terrorism products. Companies with technologies or services that fall under the Safety Act are provided with various levels of liability protection. Until now the seals were only used to market products with the highest level of protection, but now the agency will provide separate marks for other classes of approval, which provide recipients with liability caps. FTC Releasing Final Privacy Report Today: The Federal Trade Commission will issue its final privacy framework today, more than a year after circulating a draft of the report, which proposed the use of Do Not Track technology by the Web browser industry. That document prompted browser makers to develop add-ons that allow users to avoid being tracked, in hopes of avoiding a mandate to do so from the government. The final report comes just weeks after the Obama administration released its own privacy report, which expressed support for both voluntary measures from industry and new legislation to protect consumers from unwanted online tracking. Stay tuned for full coverage. Wireless Group Adds Cybersecurity Expert: CQ Weekly reports CTIA-The Wireless Association has created a position to help carriers secure their networks and devices as the debate over cybersecurity legislation on the Hill continues to ramp up. The wireless trade group hired John Marinho from Dell to serve as vice president of technology and cybersecurity. He previously helped CTIA develop industry standards for wireless devices. Microsoft Targets Botnets: Microsoft announced a coordinated global action against the Zeus family of botnets on Sunday, one of the most harmful families of malware on the Web. Microsoft collaborated with the financial industry and federal government in the sting, which resulted in the seizure of hundreds of web addresses.