[BusinessTeam] article on privacy

Message-ID: <6B75EF096AE0BE428B8CEDEA89C5F632782289@exchange01.lab49.com> · Mon Sep 18 20:09:22 2000 UTC

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Speaking at the Global Privacy Summit, European Union Parliament member
Pat
Cox, Rep. Rick Boucher (D-Va.) and Rep. Bob Goodlatte (R-Va.) detailed the

ways governments are working to ease consumer privacy concerns with
legislative actions. Primarily touting the safe-harbor agreement reached
by
the EU and the United States, all three speakers applauded efforts taking
place now, but they said more work needs to be done. Although the three
disagreed on the role government should play in legislating Internet
privacy, all noted that a policy of industry self-governance mixed with
targeted government intervention was the best way to ensure that the
greatest number of consumers are protected. Where government should focus
its efforts, however, is still a bone of contention. In the first part of
a
two-part guest column, Editor At Large Amanda Forster reports on the
legislative issues affecting Internet privacy and the varied perspectives
of
EU and American officials on the matter.

WirelessNetNOW encourages your feedback and seeks opposing views. If you
would like to respond to this column, please send
mailto:editor@commnow.com
to arrange for a publication opportunity.
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This feature, Guest Column: Global Privacy Summit - Part 1 was published
on
Monday, September 18, 2000 at 2:56 PM

By now, everyone is well familiar with the great privacy debate and
whether
or not governments and state agencies should become involved in what, to
date, has been a largely unregulated market space. Those backing
government
intervention have a good case to make, because the Internet affects both
the
public and private sector in a way that perhaps can't be controlled by the

Internet economy itself. On the other hand, government regulation keeps
privacy concerns in place as civil libertarians and privacy experts ask
what
force or agency will monitor the government's use of personal information.

According to EU Parliament member Pat Cox of Ireland, the issue has been
approached differently in Europe because Europeans tend to think of
Internet
users as online citizens rather than as online consumers. Under that
paradigm, says Cox, "Citizens have the right to refuse or to give
information, can appeal the use of data and can control who has access to
personal or sensitive information." This outlook was the primary driver of

the EU's comprehensive 1998 privacy policy, which is demonstrably stronger

than any policy on privacy to come out of the United States.

Since the time of the EU policy, the EU and the United States have worked
out a safe-harbor agreement that stipulates U.S. businesses will be able
to
access European data flows provided that self-regulated domestic privacy
protections are deemed "adequate." American companies also have to promise

to adhere to those stated policies and, if they are found in violation of
them, they will be subject to prosecution in the United States and the EU.

This allows American businesses to continue to do business in Europe even
if
they are not able or willing to follow every letter of the EU privacy law.

However, Cox recommends American businesses "follow the EU recommendations

in order to preserve the U.S.-to-EU channel." If Americans do not start to

fall in line with the European policies, they risk being closed out of the

market, says Cox.

--Americans Take Slightly Different Tack

Like Cox, Rep. Bob Goodlatte (R-Va.) says that privacy is "a great concern

to us." However, Goodlatte backs a policy based on industry
self-regulation.
"Consumers need to understand that they need to protect themselves on the
Internet," says Goodlatte. However, Goodlatte also acknowledges the
Internet
industry bears a certain responsibility as well. But with self-regulation,

"we now have privacy seals of approval and web certification groups. These

policies are working. Sixty-six percent of all Web sites now post privacy
policies on the Web. All we need from government is a review process," he
says.

Goodlatte does say that in some cases, it is necessary for the government
to
step in and regulate the industry, particularly with highly sensitive
data.
"We have some laws covering the privacy of children, financial data and
health care information," he says. In the future, Goodlatte says
government
should continue to intervene to help ensure companies disclose their
personal information policies each year, provide customers a way to opt
out
of non-public disclosures, prevent companies from disclosing information
to
unapproved third parties and ensure that e-commerce sites protect consumer

transactions.

"I support private regulation and targeted government intervention," says
Goodlatte. "Consumers must be educated as to what the industry is doing to

protect them, but we must promote the Information Age, which is rooted in
having good and reliable information online." This is why Goodlatte says
he
also supports the EU/U.S. safe-harbor agreement. "Under the safe harbor,
we
can comply with EU rules while also retaining the right to
self-regulation,"
he says.

--Boucher Recommends More Government Intervention

Although Boucher supports the EU/U.S. safe-harbor agreement, he says that
the agreement is just a "foundation for privacy protections that are yet
to
come. The time has come for us to extend privacy protections to the
collection of personal data."

To that end, Boucher has proposed legislation that would outline the
minimum
standards for all Web sites regarding the collection and use of personal
information. The legislation would require every site to post a notice
explaining how all personal data will be used, give consumers an
opportunity
to opt out of data collection, create a mechanism that would ensure
observance of the standards, pre-empt any state regulation and direct the
Federal Trade Commission to conduct studies recommending further action.

"We need this legislation because while 66% of Web sites do post and honor
a
privacy policy, 44% don't," says Boucher. "This would grow consumer
confidence in the Internet, and Internet use would increase as a result."

In addition, "there is a growing consensus in the industry supporting this

legislation because it would enable us to advance our privacy policies
domestically and improve international measures in the process."

(Editor's note: In Part 2 of this story, Editor At Large Amanda Forster
will
report on how industry and public interest groups are tackling the problem

of Internet privacy.)
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