UPDATE 1-U.S. extends privacy guidelines to mobiles, ISPs

(Adds reaction from companies, privacy advocate)

By Diane Bartz

WASHINGTON Feb 12 (Reuters) - Federal regulators extended guidelines for how websites collect, save and share information about their visitors to Internet service providers and mobile providers, saying those customers should also be able to protect their personal information.

The Federal Trade Commission has urged that websites tell consumers that data is being collected during their searches and to allow them to opt out. Now that same guidance is directed at mobile companies and Internet service providers.

"You may have a contract with your ISP and everywhere you go, they can be collecting information on you," said Jessica Rich, the FTC's assistant director in the division of privacy and identity protection.

There are few U.S. laws about the collection and use of data from the Internet, with exceptions for instances where firms fail to live up to advertised promises to protect privacy, or fail to deliver an expected level of data protection.

One of the four FTC commissioners who approved the report, Jon Leibowitz, warned that the industry's failure to safeguard the public's privacy could lead to a tougher federal position.

"Industry needs to do a better job of meaningful, rigorous self-regulation or it will certainly invite legislation by Congress and a more regulatory approach by our commission," he wrote.

Communications provider AT&T (T.N) and Internet media company Yahoo (YHOO.O) responded to the FTC's revised guidelines with statements that supported the philosophy of self-regulation. But Internet search and advertising leader Google (GOOG.O) said it backed congressional action.

"Google will continue to engage in efforts to develop strong self-regulatory principles and will continue to advocate for comprehensive federal privacy legislation," wrote Pablo Chavez, Google's senior policy counsel, in the company's blog.

Corie Wright, a privacy expert with Georgetown University's Institute for Public Representation, urged the FTC to go further and bar companies from tracking children and teenagers, despite the difficulties of determining the age of individuals once they are online.

"This report doesn't go far enough to protect kids," she said. "We're not insensitive to technical problems but we think they can be solved." (Reporting by Diane Bartz; Editing by Andre Grenon and Tim Dobbyn)