U.S. Commerce Secretary John Bryson speaks during an event on better protecting U.S. consumers' online privacy at the White House in Washington Feb. 23, 2012. The U.S. government on Thursday unveiled its plan for better protecting U.S. consumers' online privacy. (Xinhua/Fang Zhe)

The Obama administration on Thursday unveiled its plan for better protecting U.S. consumers' online privacy.

The proposed Consumer Privacy Bill of Rights, which is the key part of a report released by the White House on Thursday, laid out seven guidelines for the use of personal information obtained online by businesses.

Under the bill, consumers would have control over what data is collected on them and how the information is used. They would also have a right to understandable information about privacy practices.

"As the Internet evolves, consumer trust is essential for the continued growth of the digital economy, what's why an online privacy Bill of Rights is so important," President Barack Obama said in a statement. "For businesses to succeed online, consumers must feel secure."

The bill comes as the Obama administration has been concerned that the country's current consumer data privacy framework lacks a sustained commitment of all stakeholders to address consumer data privacy issues which arise from advances in technologies and business models.

The Thursday report results from a comprehensive review of the intersection of privacy policy and innovation in the Internet economy. The Commerce Department launched the review in 2010, seeking public comments on an initial set of issues and later on a set of policy recommendations.

In the coming weeks, the department will bring together companies, consumer groups and other stakeholders to develop specific codes of conduct that implement the general principles in the Consumer Privacy Bill of Rights.

The White House report said the new privacy practices, when publicly and affirmatively adopted by companies, will be legally enforceable by the Federal Trade Commission (FTC), the federal government's leading consumer privacy enforcement authority.

Leading Internet companies, including Google, Yahoo!, Microsoft and AOL, have agreed to act on the Do Not Track technology recommended by the FTC, when consumers choose to control online tracking.

"It's great to see that companies are stepping up to our challenge to protect privacy so consumers have greater choice and control over how they are tracked online," said FTC Chairman Jon Leibowitz.

Gene Sperling, the National Economic Council director, welcomed web companies' commitment to comply. "It is a type of example of voluntary industry action to increase the trust in the Internet," he said at the White House.

Commerce Secretary John Bryson endorsed the plan, saying that the United States needs strong online protections for consumers, as well as a set of basic principles to help businesses guide their privacy and policy decisions. He added that the administration will work with Congress to write the principles into law.