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Police and security services will be able to see names of sites visited in the past year without a warrant, under the draft Investigatory Powers Bill.
The science and technology Committee says its requirements are confusing, and firms fear a rise in hacking.
The Home Office said it would study the report's findings.
When she announced the draft bill last year, Theresa May stressed that the authorities would not be able to see individual web pages visited, just basic data, such as domain names like bbc.co.uk or facebook.com.
The information would, of course, only be used for 'official purposes'.
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Theresa May's Internet Spy Powers Bill 'Confusing', Say MPs
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(Score: 2, Insightful) by Anonymous Coward on Monday February 08 2016, @07:04AM
The "official purposes" include (or will include) destroying whistleblowers, journalists, dissidents, and activists, as well as blackmailing politicians. There has never been a government throughout history that could be trusted with such massive amounts of power, but this time is different; just trust the government.