AFFIRMATIVE-CONSUMER/INTERNET-DISADVANTAGE ANSWERS� 377

PRIVACY REGULATIONS WILL NOT HURT BUSINESS

PRIVACY VS. HEALTHY INTERNET ECONOMY IS A FALSE DICHOTOMY

Business Week, March 20, 2000; Pg. 156 TITLE: GETTING SERIOUS ABOUT NET PRIVACY // acs-VT2001

Postulating a false dichotomy between the economic well-being of Net enterprises and individual privacy, companies blindly proceeded to set the stage for a major backlash. When the privacy backlash came, as it recently did, it came from all quarters -- consumers, investors, and regulators. After DoubleClick, an Internet ad-placement company, announced it was merging online Web profiles with data containing names and addresses, a slew of consumer lawsuits, protests from privacy advocates, and regulatory inquiries sent its stock plummeting. Only by retreating could it recoup some of its loses.

COMPLYING WITH PRIVACY CONTROLS WILL NOT HURT BUSINESS

Michelle Singletary The Washington Post, January 31, 1999, SECTION: FINANCIAL; Pg. H02; TITLE: Whose Information Is It, Anyway?; Consumers Have Few Rights to Privacy of Personal Data // acs-EE2001

As always, industry officials argue that obtaining consumer consent will cost a bundle and wreak havoc on our economy. They insist that few consumers would take the time to return forms opting in.

I don't buy that. With the technology we have today, it's much easier than ever to click a key on a computer, send in a postcard or make a call to say, "Yes, please put me on all those mailing list so I can get all those pesky telemarketing telephone calls."

CORPORATIONS WANT PRIVACY RULES BECAUSE THEY HATE UNCERTAINTY

ESTHER DYSON, edits the technology newsletter Release 1.0, Los Angeles Times March 20, 2000, SECTION: Business; Part C; Page 3; TITLE: CONTROL OF PRIVATE DATA BELONGS IN HANDS OF CONSUMERS, NOT VENDORS // acs-VT2001

The irony, of course, is that the recent sequence of events illustrates that publicity and disclosure can work in changing corporate behavior. And ironically, it is a corporation that is requesting straightforward rules--uncertainty is what business hates the most.

WITH PRIVACY CONFIDENCE ELECTRONIC COMMERCE WILL DOUBLE

L.R. Ricciardi, senior vice-president and general counsel, International Business Machines, Financial Times (London) May 12, 1999, SECTION: LETTERS TO THE EDITOR; Pg. 14 TITLE: Finding common ground on web privacy // acs-EE2001

People in the EU and the US want to protect privacy and commerce. A study by the Boston Consulting Group estimates that electronic commerce would double if people had greater confidence that their privacy was protected on the web.

GOOD PRIVACY POLICIES ARE GOOD FOR BUSINESS

HAROLD McGRAW III: Financial Times (London), February 12, 1999, SECTION: PERSONAL VIEW; Pg. 18 TITLE: Privacy on the line// acs-EE2001

In a world where competitors are only one click of a cursor away, a sound privacy policy is not only beneficial to customers, it is good for business. If companies fail to grasp this, they risk not only alienating customers, but also inviting cumbersome government regulations which could curtailing the exchange of electronic information between overseas markets. If they develop and implement strong privacy policies, they give customers and legislators real reason to trust the. And they will unlock the trillion-dollar potential of e-commerce.

PRIVACY ABUSES THREATEN THE ONLINE BUSINESS CULTURE

Stephanie Stahl, InformationWeek, March 6, 2000 TITLE: Online Privacy -- Privacy: A Question Of Balance // acs-VT2001

Let's face it, there's a lot of value in collecting all kinds of data about customers. After all, companies use that information to better serve their customers. Acquiring knowledge and treating it in the right manner can go a long way toward building customer loyalty. However, using it recklessly threatens the entire online business culture.

CAUGHT BETWEEN FRAGMENTED STATE LAWS AND DIFFERING EUROPEAN APPROACHES, E-COMMERCE WOULD BE BETTER OFF WITH FEDERAL REGULATIONS

tele.com, March 6, 2000 SECTION: Feature Articles, Pg. 54, TITLE: Internet Privacy -- We Know Who You Are // acs-VT2001

Remember your teacher's warning that the bad actions of a few can ruin it for the entire class? The Internet industry is being reminded of that regularly, thanks to repeated violations of Internet privacy. The industry has tried to police itself through the Electronic Commerce and Consumer Protection Group, but it may not be able to do it in either practical or public relations terms. That leads to the uncomfortable prospect of calling in the government for help, especially since privacy is high on the list of Internet users' concerns-and since these concerns have been heightened by reports of sneaky collection and distribution of personal consumer data by Internet marketers. The fallout has caused politicians from both parties to call for safeguards and privacy laws. With state moves to strengthen privacy laws and tough talk by the European Union (EU) on the matter, the industry may now be better off going to the negotiating table with the feds than facing disparate laws in different places.

PRIVACY PROTECTION BY GOVERNMENT CAN INCREASE E-COMMERCE

Business Week, March 20, 2000 SECTION: COVER STORY; ONLINE PRIVACY; Number 3673; Pg. 82 TITLE: It's Time for Rules in Wonderland // acs-VT2001

The policies we propose are in the best interests of Web businesses. If more consumers can be assured that their personal information is safe, more of them will flock to the Net -- and click, not exit. There are other explicit benefits for the industry. Privacy standards create a level playing field, so companies don't fall into an arms war, each trying to collect the most data -- at any cost. ''Business will benefit from the right level of government involvement,'' says Nick Grouf, founder of PeoplePC, which offers cheap PCs and Net connections. ''Standards are good, but they need some teeth, and this is where government becomes a good partner.''

PRIVACY IS CRITICAL TO THE GROWTH OF E-COMMERCE

Joel R. Reidenberg, Professor of Law and Director of Graduate Program Academic Affairs, Fordham University School of Law, " Restoring Americans' Privacy in Electronic Commerce," Berkeley Technology Law Journal, Spring, 1999, 14 Berkeley Tech. L.J. 771, EE2001-JGM, P. 771

Privacy is a critical issue for the growth of electronic commerce. During the last few years, an overwhelming majority of Americans report that they have lost control of their personal information and that current laws  [*772]  are not strong enough to protect their privacy. n1 In 1998, Business Week found that consumer worries about protecting privacy on the Internet ranked as "the top reason people are staying off the Web - above cost, ease of use and annoying marketing messages." n2 The fair treatment of personal information and citizen confidence in such treatment are each necessary conditions for electronic commerce over the next decade. Yet, sadly, at the political birth of the electronic commerce movement in 1997, the White House's report, A Framework for Global Electronic Commerce, n3 more commonly referred to as the Magaziner Report, missed a key opportunity to assure the protection of citizens' privacy on the Internet.

A NEW FEDERAL STATUTE TO PROTECT INFORMATION IS NEEDED TO ENSURE THE COMMERCIAL POSSIBILITIES OF THE INTERNET

Bryan S. Schultz, Associate Member, 1997-98, University of Cincinnati Law Review, "ELECTRONIC MONEY, INTERNET COMMERCE, AND THE RIGHT TO FINANCIAL PRIVACY: A CALL FOR NEW FEDERAL GUIDELINES," University of Cincinnati Law Review, Spring, 1999, 67 U. Cin. L. Rev. 779, EE2001-JGM, P 805

The failure of existing statutory and common law to provide adequate protection against information abuses inherent in Internet transactions requires the enactment of a new federal statute that directly addresses such concerns. n190 To faciliate development of the Internet as a valuable commercial medium, the new statute must accommodate the reality of electronic commerce by providing clear guidelines governing those who engage in electronic money transactions over the Internet. n191 Without a statute providing clear legal rules regarding the privacy rights of electronic money users engaging in online transactions, the Internet will likely fail to reach its full commercial potential. n192 Indeed, the commercial success of the Internet may depend upon the confidence of consumers in the anonymity and privacy of their financial transactions. n193 Thus, the new statute must not only directly address the use of electronic money, but it must also focus on privacy as the prevailing priority. n194

IT IS POSSIBLE TO HAVE BOTH E-COMMERCE AND PRIVACY PROTECTION

John Schwartz, Washington Post Staff Writer, Washington Post December 17, 1999, SECTION: FINANCIAL; Pg. E04 TITLE: Internet Privacy Eroding, Study Says; Top 100 Web Shopping Sites Checked // acs-EE2001

"You can have the convenience of electronic commerce and the control over your personal information," said David Medine, the FTC's associate director for financial practices. "That doesn't have to be a trade-off."

SOUND GOVERNMENT PRIVACY REGULATION OF THE INTERNET WILL BE GOOD FOR E-COMMERCE

STEVE LOHR, The New York Times, October 11, 1999, SECTION: Section C; Page 1; TITLE: Seizing the Initiative on Privacy; On-Line Industry Presses Its Case for Self-Regulation // acs-EE2001

Yet many people argue that some basic legislation to protect individual privacy on the Internet is inevitable -- and that it could both benefit consumers and stimulate the growth of E-commerce by fostering greater public trust in doing business on line. Such sentiments extend well beyond the traditional champions of Government intervention like privacy advocates and consumer groups.