Companies would have to tell users what type of information is collected, and how that information will be used.
SPY ACT also prohibits the use of key loggers and Web ads that can't be closed. Penalties for violations of the proposed bill would range up to $3 million.
http://www.techweb.com/wire/story/TWB20040625S0004
Lawyers can have a field day with this if it is finalized.