NEGATIVE — CONSUMER/INTERNET — SIGNIFICANCE� 403

THE FEDERAL TRADE COMMISSION PROTECTS ONLINE PRIVACY

THE FEDERAL TRADE COMMISSION IS PRIMARY FEDERAL AGENCY FOR PROTECTING ON LINE PRIVACY

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.134

The issue of on-line privacy is nothing new for the Commission. In 1995, the Commission held its first public workshop on Internet privacy n57 and has since attempted to address new and unresolved privacy concerns in the on-line marketplace. The Commission defined its goals in this regard to include identifying potential consumer protection issues related to on-line marketing and commercial transactions, providing a public forum for the exchange of ideas and the presentation of research and technology, and encouraging effective self-regulation. n58 In short, the Commission should generally be viewed as the primary agency responsible for consumer protection on the Internet and, specifically, for protecting Internet consumer privacy.

FTC IS PREPARING TO CRACK DOWN ON US COMPANIES FOR MUSUSE OF DATA

KARLIN LILLINGTON, The Irish Times, March 24, 2000 SECTION: CITY EDITION; BUSINESS THIS WEEK 1; NET RESULTS; Pg. 60 TITLE: EU, US privacy agreement a cause for alarm Decision to postpone considering Net issues is worrying since cyberspace is where the greatest abuses can be perpetrated // acs-VT2001

The Federal Trade Commission in the US is investigating several cases of misuse of information and is threatening to introduce regulation. US companies online still don't effectively self-regulate. This is despite a finding in one survey that three-quarters of Americans said they would buy rather than browse online if they knew their privacy was guaranteed.

FTC CRACKS DOWN ON BAD INTERNET PRIVACY POLICIES

Joel B. Rothman, Seiden, Alder, Rothman, Petosa & Matthewman, P.A., eBusiness Advisor, March, 2000 SECTION: STRATEGIES; Legal; Pg. 34, TITLE: Establish an Effective Privacy Policy // acs-VT2001

The potential consequences of inadequate privacy policies and lax enforcement can be severe. The Federal Trade Commission (FTC) has stated that the use or dissemination of personal information in a manner contrary to a posted Internet privacy policy is a deceptive practice that violates the FTC Act. Such a violation typically triggers an intensive FTC investigation, followed by enforcement in federal court or through administrative proceedings before the Commission. U.S. Bancorp, for example, is learning exactly how serious privacy policy regulations can be. The Minneapolis-based bank sold private customer information to marketers in violation of its adopted privacy policy. Now, the company is being sued by the Minnesota attorney general for deceptive advertising and fraud.

FTC IS CRACKING DOWN ON WEB SITE PRIVACY ABUSES

Joel B. Rothman, Seiden, Alder, Rothman, Petosa & Matthewman, P.A., eBusiness Advisor, March, 2000 SECTION: STRATEGIES; Legal; Pg. 34, TITLE: Establish an Effective Privacy Policy // acs-VT2001

The FTC has already brought actions against U.S. Web site operators for unfair and deceptive practices. The first (and perhaps the most visible) action was against GeoCities, the online community now owned by Yahoo. In August 1998, the FTC charged that GeoCities had misrepresented the purposes for which it was collecting personal identifying information from children and adults. Under the terms of the settlement, GeoCities agreed to post a clear and prominent privacy policy. GeoCities got away with the equivalent of a slap on the wrist. With the attention being paid to privacy issues these days, it's likely that the next offenders won't be treated as favorably. If you drop the ball on your privacy policy, and you may be next.

FTC IS FORCING ONLINE WEB SITES TO ADOPT AN OPT OUT POLICY ON PRIVACY

Precision Marketing, March 6, 2000; Pg. 10 TITLE: FTC pushes privacy protection // acs-VT2001

In a groundbreaking move, US watchdog, the Federal Trade Commission aims to tighten data privacy by forcing companies to be more open on customer information and let them stop it being passed on.

The FTC wants firms to give clearer privacy policies to their customers, and detail the data that is stored. It hopes customers will be able to opt-out of having their personal details sold or distributed.

FTC REVIEWS WEB SITES FOR PRIVCY VIOLATIONS

Joel B. Rothman, Seiden, Alder, Rothman, Petosa & Matthewman, P.A., eBusiness Advisor, March, 2000 SECTION: STRATEGIES; Legal; Pg. 34, TITLE: Establish an Effective Privacy Policy // acs-VT2001

You also need to be aware that your site is subject to regular government scrutiny. The FTC has stepped up its review of sites that collect personal information from visitors. In fact, the FTC is devoting significant resources not only to investigate complaints made by consumers, but also to search out and find deceptive practices on its own. Rather than wait for complaints, the FTC has created a unit to surf the Web and seek out unfair and deceptive practices. Your site may be the next one paid a visit by FTC lawyers or their counterparts in state and local law enforcement. How to protect consumer privacy

FTC WILL CONTINUE TO MONITOR INTERNET PRIVACY POLICIES

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

Mr Pitofsky warned the industry that the FTC would closely monitor privacy protections. "Responsible elements in the online business community have accomplished a great deal in a short time, but there is a considerable distance to go before consumers can feel secure from privacy invasions in their dealings on the internet," he said.