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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) by Whoever on Monday February 08 2016, @07:31AM
The document appears to ignore any Internet communications that are not http.
Also, it looks like the government has engaged in lots of handwaving and inadequate consideration of end-to-end encrypted traffic. Either that, or GCHQ isn't concerned about encrypted traffic and will gather the data itself, without the involvement of CSPs (ISPs to the rest of the English-speaking world).
The only solution proposed to deal with end-to-end encryption that is proposed is hacking, which is unlikely to be useful on a large scale and is likely to be unreliable in producing results. I don't see the need for ISPs to gather this data if they can just hack into someone's computer.