Everything I've heard about this is that the monitoring is being done by the ISPs themselves, not the content owners.
"Can this system see what sites I visit online?
No. There is no monitoring of any Internet traffic by ISPs. The identification of alleged infringement is done by Content Owners on peer-to-peer networks only. The Copyright Alert System applies only to peer-to-peer networks and not to general Internet use."
There's a lot of misinformation going around, spread by people who probably have good intentions but don't understand that by arguing against a straw man, they're actually making it easier for their opponents to discredit them. There are plenty of valid reasons to dislike this plan, we don't need to be making up fake ones.
[1]: http://www.copyrightinformation.org/resources-faq/copyright-...
Edit: Fixed quoting.
That's what I think whenever an Internet lynch mob forms (TCPA, SOPA, etc.) but somehow it never matters. There's hardly any backlash against the hyperbolic scaremongering.
Source: http://arstechnica.com/tech-policy/2012/10/six-strikes-syste...
My ISP owns a number of entertainment companies...