NEGATIVE — CONSUMER/INTERNET — SIGNIFICANCE� 389

CONSUMER INFORMATION GATHERING IS NOT A THREAT TO PRIVACY

CONSUMERS FACE NO REAL DANGERS FROM THOSE COLLECTING INFORMATION SO THEY CAN SELL US THINGS

In other words, we do not need the government to protect us from people and firms collecting information simply in order to offer us goods and services. Consumers face no real danger here.

PRIVATE ACTION TO USE INFORMATION COLLECTED FROM INDIVIDUALS DOES NOT VIOLATE A 4^TH AMENDMENT RIGHT TO PRIVACY

The United State Constitution describes and limits the powers of government, not of the private sector. So, private action to use information collected from customers for marketing purposes does not violate Fourth Amendment rights of privacy; those rights are established to limit the power of government. And government-sponsored system of regulation entails state action that may violate rights of free speech, for example, but a purely private-sector system will not. Note, this is not because the private-sector actions do not have an impact on the world--clearly, they do--but simply because the private-sector actions do not cross the same rights-boundaries as state actions do. A purely private-sector software filter does not "threaten" free speech, but is itself a part of free speech in the same way that a newspaper editor's decision not to print a certain article is a part of free speech.

PRIVACY INTERESTS ARE NOT THREATENED BY COLLECTION, SALE, AND USE OF INFORMATION BY PRIVATE GROUPS

Are consumers' privacy interests implicated by the collection, compilation, sale and use of information collected by online profiling companies? No. This is a controversial answer, so I will explain. First, I distinguish privacy concerns from security concerns. The best solutions to security problems is the sharing of more information, better verification procedures, the use of photos or even biometric data to control access to databases, and so on. Privacy, on the other hand, is generally understood to disfavor the collection or storage of information at all without the litany of notice, consent, access, etc. The alleged right of consumer access to databases, indeed, adds to security problems. Security and privacy will frequently find themselves at loggerheads. Whatever regulatory or business issues are raised by the need for greater security, they should be disentangled from the debate about privacy.

Second, "interests" above must mean legitimate interests--interests that should be recognized and perhaps sanctioned in some official way. Someone who does not pay his debts probably has an interest in avoiding detection, but this is not an interest to which most of us would be sympathetic.

VAST MAJORITY OF CORPORATE DATA IS FOR BENIGN PURPOSES WHICH BENEFIT THE INDIVIDUAL

Tom Foremski: Financial Times (London), July 7, 1999, SECTION: SURVEY - FT IT REVIEW; Pg. 04 TITLE: Concern in US over new technologies: PRIVACY Web sites can already build up a detailed personal file on each visitor. // acs-EE2001

For the most part, personal data collected by companies is intended for benign purposes. Knowing more about a customer or a visitor to a web site is one of the most basic goals of any business. Such data enables web sites to automatically configure themselves for the personal preferences and interests of their visitors, companies can use personal data to target advertising messages, offer special deals on specific products, and simplify purchasing online by storing a returning customer's credit card details.

CONSUMER DATA GATHERING IS NOT THREATENING, BUT ONLY FINE TUNES THE MARKET

Heather Green, Business Week, February 14, 2000; Pg. 38 TITLE: PRIVACY: OUTRAGE ON THE WEB // acs-EE2001

Online marketers say the data-gathering is nonthreatening -- that it is merely a way of fine-tuning marketing for the convenience of consumers as well as marketers.

VERY FEW WEB SITES SELL INFORMATION TO OTHER GROUPS BECAUSE IT IS BAD BUSINESS

Rick Whiting, InformationWeek, March 6, 2000 TITLE: Mind Your Business -- Companies Rethink Their Privacy Policies As Public Concern Grows // acs-VT2001

A major concern of Web users is that sites will sell information about them to a third party, such as a marketing-database vendor. But few dot-coms say this is a good idea. "We don't sell or rent our customer lists," says Bill Schlough, CIO for baseball's San Francisco Giants, which sells tickets through the Sfgiants.com and Tickets.com Web sites. "It's a very sensitive issue with our customers."

IN INTERNET MARKETING THEY COLLECT INFORMATION, BUT THEY DON'T KNOW WHO YOU ARE

Matt Reed, New Media Age, December 2, 1999; Pg. 23 TITLE: Protecting personal data// acs-VT2001

In terms of Internet marketing, this is a key distinction. "We believe in anonymous profiling. We don't collect any personal data and our whole technology is built around that concept. Although we collect information we don't know who you are," says Peter Chaplin, vp (international) at advertising software/services firm Engage.

"Cookies aren't bad on their own," adds Chaplin. "They're only bad if they're misused. What we use a cookie for is to drop an anonymous ID on to the computer. We recognise that ID, not who you aree there's no link between the person and the profile."

THERE IS A DIFFERENCE BETWEEN OBSERVED AND DELIVERED INFORMATION BECAUSE IT IS NOT IDENTIFIABLE

Matt Reed, New Media Age, December 2, 1999; Pg. 23 TITLE: Protecting personal data// acs-VT2001

It is important to distinguish between observed information and delivered information, points out Philip Rooke, md at Carlton Online. "Ads and promotions can be targeted at you, based on what you've looked at (within the site)e but it's not identifiable," says Rooke.