The new recommendations would create a Privacy Bill of Rights and would establish a privacy policy office within the Commerce Department, according to DailyTech.
The recommendations would also establish clear guidelines for what types of user data can be collected and how it can be used.
The Privacy Bill of Rights would give clear rules on data collection and would set up an audit trail to make sure companies followed the rules.
"Self regulation without stronger enforcement is not enough,” commerce Secretary Gary Locke told the Washington Post.
“The report is a road map for considering a new framework that is good for consumers and businesses."
Locke also stated that the U.S. needs to ensure that regulators here coordinate their privacy standards with the standards adopted in Europe and other countries so there is no confusion.