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Editor's Note - 05.13.02 |
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Hello Readers,
Today's article discusses a new bill that's slowly materializing in the Senate
which will offer consumers some protection from online companies when it comes
to their personal information. In keeping with this theme, I'd like to tell you
about another privacy issue - software that watches what you do on your computer.
New software, called Be Aware With Chat Watch, takes periodic screenshots of
the computer it's set to monitor. It hunts for keywords, and is touted as a solution
for suspicious spouses and worried parents who want to know exactly what's happening
on their PCs. Whether you're worried about being watched, or want to keep a closer
eye on what goes through the browser on your home PC, you'll want to have a look
at the article...(see below).
In other privacy news, companies continue to vie for supremacy when it comes
to protecting your online identity. Microsoft may be leading the way, but the
competition to find the ultimate solution to identifying you, positively, everywhere
you go on the Web, is fierce. See how the major players are shaping up, and how
their products coming along, in the article...(see below).
Enjoy the issue!
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New
Bill Champions Online Privacy
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by Jackie Rosenberger / iEntry Staff Editor
You’re reading your email when you happen across a message from a sender you don’t
recognize. The message not only addresses you by your full name but also contains
details about you that you don’t recall giving out. Or, you’re browsing the Web
and happen across a site that you’ve never visited before but which nonetheless
addresses you by your full name and seems to know a thing or two about your buying
habits.
It’s happened to all of us. Web companies collect data on their site visitors
all the time, using cookies, sales information, or forms that customers knowingly
fill out. At present, few laws regulate what information sites collect about visitors
and what they can do with that information.
Consumer Mistrust Equals Loss of Revenue
If these practices make you a little leery of making purchases on the Internet,
then you’re not alone. An estimated $15 billion in revenue was lost in 2001 alone
due to consumers’ lack of confidence in the Internet. In fact, over the years
legislation has been introduced several times to restrict what Web sites do with
visitor and customer information.
Now the US Senate is trying again, with a new bill intended to protect the privacy
of individuals using the Internet. Senator Ernest Hollings of South Carolina is
leading the way with a new bill that is slowly gaining form through much discussion
and debate.
Hollings claims that the bill will protect basic rights of consumers and increase
their confidence in doing business online. Those who support the bill feel that
legislation is necessary to the future of Internet commerce. While online businesses
are not entirely in favor of the bill, it’s obvious that some legislation is in
order if e-business is to succeed.
Keeping Your Secrets
The bill aims to do some very basic things to protect online consumers. First,
it would require sites to tell their visitors know what kinds of data they are
collecting on them. Second, it would limit what companies can do with information
they gather on their visitors and customers.
Before sharing sensitive information with third parties, the bill would require
that online companies must first ask consumers to give their permission. Sensitive
information includes such items as banking information, Social Security numbers,
sexual orientation, health data, and religious and political memberships.
If the bill passes, it would allow consumers to sue for up to $5000 for each incident
if they can prove that they have suffered as a result of a company sharing their
private data.
What Isn’t Protected
Although it protects some types of information, the bill does not protect others.
These unprotected items include addresses, names, purchased items, and browsing
histories. This means you’ll still probably receive those bulk emails addressed
to you, and you’ll still stumble across sites that call you by name even though
you’ve never been there before.
If the possibility of your purchase record with online shops bothers you, or if
you’d rather that no one find out about your browsing habits, the bill offers
you some recourse. It would also enable consumers on the Web to opt out of information
sharing, thus keeping even non-restricted information private. The burden of opting
out would lie with the consumer, however.
Businesses Are Not Pleased
Online businesses feel that the bill singles them out, dictating what information
they can sell or share, while brick and mortar businesses have no such constraints.
These businesses also feel that the bill will expose them unfairly to lawsuits.
Most feel that the bill should apply to all businesses to be fair, and not just
online businesses.
Businesses are also opposed to the bill’s requirement that they first must share
collected data with consumers before sharing it with other companies. They feel
this review process will be complicated and cost them money.
Other online companies, like Amazon, feel that the bill is redundant. Amazon argues
that it would certainly not do anything to alienate its millions of online customers.
Other companies feel that online privacy is already covered in consumer law.
While they do oppose certain aspects of the bill, most online companies are in
favor of some type of bill regulating online privacy. They are concerned that
the states will create their own bills, further complicating the issue of privacy.
If such a bill is passed at the federal level, it will cancel out individual state
laws that cover the same ground.
Boosting Confidence for the Future
While neither side is pleased, it’s obvious that something needs to be done to
protect consumer privacy. Too much sensitive data about consumers is stored on
Web sites for the industry to go completely unregulated. Additionally, many consumers
aren’t comfortable sharing any information at all with online companies, much
less typing in credit card numbers and sending their financial records off to
oblivion.
With some formal regulation, consumers may trust online companies more, and thus
help to move away from the Web’s "anything goes" image and replace it with a sturdy
foundation upon which to build a solid Internet economy.
Additional Links:
The
Monitors Have Eyes
Where
Everybody Knows Your Name
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