DISADVANTAGES — CONSUMER/INTERNET — HURTS BUSINESS 424

AFFIRMATIVE ANSWERS

PRIVACY CONTROLS ARE GAINING STRENGTH AND COULD WRECK THE ONLINE ECONOMY

Barbara Young, senior vice president of the Financial & Professional Services Group of Shandwick-Minneapolis, Star Tribune (Minneapolis, MN) March 20, 2000, SECTION: BUSINESS; Pg. 3D TITLE: The thundering privacy train; Unless some of the steam is let out of this issue, businesses, consumers and the economy all could be derailed // acs-VT2001

The truth is that policymakers in Washington, D.C., and all 50 states are working overtime to regulate data privacy. If the privacy train isn't brought under control quickly, many business plans are likely to be derailed.

The Internet Economy is taking center stage in our lives, so it's natural for it also to take political center stage. That's what's happening on data privacy.

PRIVACY CONCERNS ARE ALREADY HURTING E-COMMERCE

SIMSON GARFINKEL The Boston Globe January 6, 2000, SECTION: BUSINESS; Pg. C4 TITLE: PLUGGED IN / PROTECTING YOUR PRIVACY CONCERNS ABOUT THIRD-PARTY MONITORING PUTTING A DAMPER ON E-COMMERCE // acs-EE2001

According to a pair of studies recently released by the Wharton School of Business, on-line shopping could be in trouble: Although total spending was up in 1999, the average number of dollars spent per Internet user was down.

Meanwhile, a growing number of Internet users are dropping out and going permanently off line, the reports found. The researchers at Wharton, who have tracked more than 23,000 Internet users since 1997, say that the single biggest factor depressing on-line sales is concern about privacy - and specifically, monitoring by third parties.

EUROPE SHOWS PRIVACY PROTECTION DOES NOT HURT BUSINESS

Mark Bergt, Journal of Commerce, February 19, 1999, SECTION: EDITORIAL/OPINION; Pg. 4A TITLE: EU privacy law no threat to US // acs-EE2001

Protection of privacy has a long tradition in Europe. It has not prevented businesses from growing, but instead helped customers and individuals to keep relevant data private and confidential during business transactions.