Legislation Would Limit Federal Use of Gag Orders on Technology Companies

Legislation under consideration in Congress would restrict the federal government's ability to compel technology companies to provide customer information without disclosure. The bill would raise the standard of proof required for such requests and limit the duration of gag orders that prevent companies from notifying customers.

Technology companies have developed detailed methods to track user preferences and behavior. These practices allow firms to stock products and services that match customer demand, in contrast to markets where such information is unavailable. The same data collection capabilities have drawn interest from federal officials seeking to use the information for investigative purposes.

Technology companies have resisted turning over the data without stronger legal protections.

The legislation would require federal officials to demonstrate a higher burden of proof before obtaining information from technology companies. It would also impose stricter time limits on gag orders and require officials to seek extensions when those limits expire.

Supporters argue that the changes would reduce the risk of undisclosed investigations and limit the potential for government use of private data collection systems. The measure has not yet received a vote in either chamber of Congress.