Online Privacy Alliance Forms Ahead Of Commerce Talks

Computergram International, June 23, 1998

As the US Department of Commerce finally prepares to hold its long-postponed Privacy Summit (CI No 3,411) on June 23 and 24, stakeholders on both sides of the privacy fence have launched pre-emptive appeals for public sympathy. The first shot came from the Online Privacy Alliance (http://www.privacyalliance.com/), a new group already boasting fifty significant internet players.

Those members, who include among their number Time Warner Inc, the Walt Disney Co, AOL Inc and IBM Corp, undertake to publish their privacy policy online, to disclose any third-party use of data, to require consent, to ensure data security and quality and to enable consumers to gain access to data about themselves. The Alliance also endorses the system of 'Privacy Approved' seals proposed by TrustE and BBBOnline. This is claimed as the most wide-ranging program of consumer protection ever proposed by industry. Still, privacy activists aren't happy. The Electronic Privacy Information Center (http://www.epic.org), the Center for Media Education and Junkbusters have united with other advocacy groups to warn Americans that their privacy remains dangerously under-protected. These groups want laws to protect consumer privacy and say that without the weight of law, the best industry regulation in the world is doomed to be toothless. Lauren Weinstein of Vortex Technologies, moderator of the influential mailing list Privacy Forum, explains the dilemma: "In general, anything the industry wishes to do that will improve consumer protection in this area is good." However he enumerates the concerns many have raised over a self-regulatory approach to privacy issues. For a start, do the proposed protections go far enough? The Online Privacy Association seems to be offering more in the way of notification than limitation. Consumers may still end up having to hand over more information than businesses really need. Second and most importantly, how will the measures be enforced? In any voluntary scheme the good guys will follow the rules and some organizations will pay no attention whatsoever. The industry tends to assume that the market will punish the unjust, but Weinstein begs to differ. "It's not realistic to expect consumers to choose sites based on whether or not they have a seal of approval," he says. "When there's no other mechanism in place, consumers will be at the mercy of these organizations. Voluntary plans are great, so long as you only have to deal with the participants." He sympathizes with industry fears that legislation will increase government intervention in daily life, but concludes: "That's an argument for carefully crafted legislation. It's not an argument for no legislation at all." The ball is now in the Department of Commerce's court.