NEGATIVE — CONSUMER/INTERNET — SIGNIFICANCE� 401

RAPID PRIVACY PROGRESS IS BEING MADE ON THE INTERNET NOW

INTERNET SITES ARE MAKING VERY RAPID PROGRESS IN PRIVACY PROTECTION

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

There are encouraging signs of progress. In early 1998, when the F.T.C. surveyed 1,400 commercial Web sites, only 14 percent gave users any notice of how they handled personal information. In early 1999, a Georgetown University survey of some 360 heavily trafficked Web sites -- a study requested by the F.T.C. and paid for by the industry -- found that 66 percent gave users some notice of how they handled personal data.

"That 66 percent is pretty astonishing from where we were a year ago," Ms. Varney observed. "From my perspective, that means that self-regulation is working."

PRIVATE SECTOR INTERNET PRIVACY PROTECTION WILL, IN THE END, BETTER PROTECT PRIVACY

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

This trial-and-error, market-driven approach to privacy, Internet executives note, has often resulted in stricter practices than those, for example, of the credit card and catalog industries. Besides, they add, a rapid response system for customers is built into the Internet, where E-mail complaining and chat room organizing can punish companies more quickly and more severely than Government regulations can.

"At the end of the day, good privacy policy is good business for us," said Robert Pittman, president of America Online. "It's very important to our members. We've learned that anything you do, you have to think through the prism of privacy.

"We're not always perfect," Mr. Pittman added. "But if we miss something, our members tell us in one big hurry."

INTERNET STRUCTURE AND NATURE CALL FOR SELF-REGULATION WHENEVER POSSIBLE

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

"There's no question that this technology could be hugely invasive," she (ex-FTC member Varney) said. "But it could also be enormously empowering by allowing individuals to make their own choices and by saving us all time and money. Particularly in the future, we will face more difficult decisions and trade-offs. But I think that argues for leaving those decisions to the marketplace for privacy as much as we can."

ON LINE WATCHDOG ORGANIZATIONS CAN AND DO SHAPE INTERNET PRIVACY POLICY

Major R. Ken Pippin, Chief of Cadet Disenrollments at HQ USAFA/JA, United States Air Force Academy, Colorado. He is a member of the Bar of the State of Arkansas., "Consumer Privacy on the Internet: It's "Surfer Beware"", The Air Force Law Review, 1999, 47 A.F. L. Rev. 125, EE2001-JGM, p.136

Not surprisingly, watchdog organizations, mainly comprising consumer advocate groups, generally favor legislation that addresses Internet privacy. These groups use a variety of forums to advocate for the consumer. Their efforts show up on-line, in the newspaper, and in every other available media outlet. Some of these groups are actively involved in litigation and lobbying efforts in Washington. Their activities can shape the way the consumer and any given member of congress feels about Internet privacy, ultimately influencing the way the Internet develops in the future.

INTERNET INDUSTRY HAS MADE GREAT GAINS IN RESPECTING PRIVACY

Richard Wolffe, Financial Times (London), July 14, 1999, SECTION: US AND CANADA; Pg. 07 TITLE: FTC blow to online privacy for consumers // acs-EE2001

Robert Pitofsky, FTC chairman, said the industry had made substantial progress since the commission first revealed last year that self-regulation was failing to work effectively.

Speaking before the House trade subcommittee, Mr Pitofsky highlighted two studies of internet sites which suggest at least 66 per cent now publicise their policy on privacy issues, compared with 14 per cent last year.

VOLUNTARY INTERNET PRIVACY REGULATION IS WORKING JUST FINE

Denise Caruso, The New York Times, August 30, 1999, SECTION: Section C; Page 5; TITLE: TECHNOLOGY: Digital Commerce; Consumers keep saying they want personal information kept private. What will it take to get industry to listen? // acs-EE2001

Even the Federal Trade Commission, which a few years ago had shown such enthusiasm for making Internet-based businesses toe the consumer privacy line, has backed down from consumer advocacy and is now advocating for industry. The agency officially concluded last month, in its 1999 Report to Congress on Self-Regulation and Privacy, that voluntary industry practices were working just fine and that "no legislative action is necessary at this time."

INTERNET INDUSTRY IS NOW ON THE RIGHT TRACK IN RESPECTING PRIVACY

JERI CLAUSING, The New York Times, July 13, 1999, SECTION: Section A; Page 10;  TITLE: Gain for On-Line Industry on Privacy Issue // acs-EE2001

Christine Varney, a former Federal trade commissioner who is now a legal counsel to the Online Privacy Alliance, a group of Internet and technology companies that was formed a year ago when the commission threatened to seek legislation, said, "I think it does reflect that the industry has done an enormous amount of work over the last year and a half and we are on the right track."

JUST BECAUSE THERE IS NO PRIVACY POLICY ON A WEBSITE DOES NOT MEAN IT SHOULD BE REGULATED

It would be a grave mistake to assume that because a business doesn't post a notice of their profiling practices, it ought to become a target of regulation. Lacking a privacy policy simply isn't even close to being evidence that that site poses a danger to consumers, in any real sense. Treating these sites as legitimate enforcement targets would be wrong, and insulting to hundreds of honest entrepreneurs. And enforcement efforts will be far more effective if they can be targeted against actual perpetrators of identity theft, fraud, and so on. Requiring enforcers to disperse their focus to hundreds of sites simply because those sites don't post some kind of notice would be an incredible waste of time.