Twelve large U.S. corporations urged Congress to pass a comprehensive consumer-privacy law. The companies cited ing rising consumer concerns that Internet safety is eroding.

Google, Hewlett-Packard, Microsoft, eBay, Eli Lilly & Co., Procter & Gamble, etc, say they want “a simplified, uniform but flexible legal framework” that supports “the free flow of information and commerce, while providing protection for consumers from increasing incidents of identify theft, fraud and intrusions of privacy.”

The group issued a statement as members of the newly formed Consumer Privacy Legislative Forum at a U.S. House Energy and Commerce Committee hearing on federal privacy legislation.

Members of the group stressed that the growing number of state privacy and industry specific laws that govern data privacy and security around the web are cumbersome and rising consumer concerns.

“Legislation should provide protection for consumers from inappropriate collection and misuse of their personal information and also enable legitimate businesses to use information to promote economic and social value.”, say the group statement.

Members of U.S. Congress supported the notion of comprehensive legislation.

The Forum said it is concerned that declining consumer trust in the Internet threatens economic growth and innovation online. It cited a nationwide survey by the Cyber Security Industry Alliance released in May showing 94% of respondents consider identity theft a serious problem and only 24% feel businesses are placing the right emphasis on protecting their information.