The Federal Communication Commission has passed new privacy rules to better protect users' personal data.

Under the new rules, Internet service providers are required to seek permission from their customers before collecting and using their personal information. The rules apply to providers of mobile as well as fixed broadband internet services.

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The rules call for obtaining opt-in consent before collecting data including app usage, financial information, web browsing, and health information. ISPs are also required to inform users about the potential use of their information. They are also required to notify users about the third parties with whom such information may be shared. Other instances of sensitive information are precise geolocation information, content of online communications, and information related to children.

The new ruling was approved at the monthly meeting of the FCC with a 3-2 vote. Commissioner Mignon Clybrun stated that consumers are deeply concerned about their privacy and that the agency should be equally concerned as well. The agency also provided that for non-sensitive information, users should be given an option to opt out.

The new ruling is likely to derail plans of many communication companies looking to harvest users' data for setting targeted advertisements. Some companies may even choose to challenge the ruling. Republican FCC commissioners have already complained that the new ruling favors companies such as Google and Facebook which already use data for generating revenue through advertisements. The new rulings will not apply to these companies and will only apply to Internet providers.