Additionally, the tech companies that have signed onto the code face limitations on how the data is used and for how long it is retained. Under the code, the companies must have customer consent to collect personal data.
“This agreement shows that technology companies, retailers and consumer advocates can work together in the best interest of the consumer,” Schumer said in a statement.
“There is still much more work to be done and I will continue to push for privacy rights to be respected and strengthened, but this represents real progress.”
Jules Polonetsky, executive director of the Future of Privacy Forum, said in a statement that the code is “comprehensive” one that provides standards that require companies “to de-identify data, to provide consumers with effective choices to not be tracked and to explain to consumers the purposes for which data is being used.”
“These standards ensure that consumers understand the benefit of the bargain and have choices about how their information is used while allowing technology to continue to improve the shopping experience,” Polonetsky said.