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Pressure's on for Net privacy
By Tim Clark
March 14, 1998, 9:00 a.m. PT
LOS ANGELES--Time is running out for
privacy self-regulation on the
Internet if private-sector efforts
don't show results soon, a key privacy
advocate warned at Internet World.
"We are in a final two-minute drill,
because this is becoming such a big
issue," said Lori Fena, founder of the
Electronic Frontier Foundation and
cofounder of a leading private-sector
privacy initiative. "It is also ripe
for legislation. All of a sudden, if
somebody raises their hand and says
there should be a law, it will be like
someone lit a match."
But America Online's general counsel,
speaking at the same event, said he is
more optimistic about whether
self-regulation on privacy will work,
and he thinks Washington policy-makers
will give the private sector more time
if it is needed.
"We do have to have some answers [in
how self-regulation would work], but
we don't necessarily have to have
implementation," said George
Vradenburg, an AOL senior vice
president.
AOL is working with a task force in
Washington that includes privacy
advocacy group Center for Democracy
and Technology and the Interactive
Services Association (ISA), a trade
group for the online industry.
"If [self-regulation] doesn't shape
up, there's going to be a lot of
people looking into the industry,"
Vradenburg said, indicating that
public attention may push the industry
to act faster and in ways it hasn't so
far.
Vradenburg and Fena's comments, made
at a sparsely attended "privacy
summit" at the trade show, come as
several government agencies approach a
July 1 deadline for reporting to the
White House on the progress of
industry efforts for self-regulation
on a variety of Internet issues, a
central theme of Clinton's Framework
on Global Electronic Commerce.
In addition, the FTC is planning new
privacy workshops, similar to ones
held last June, which most likely will
be held in April and June. •
Later this year, pressure from Europe
also will mount. In October, the
European Union puts in place rules
requiring privacy guarantees. If the
Europeans aren't convinced that online
privacy protections in the United
States are strong enough, European
companies won't be able to sell or buy
certain kinds of personal data from
U.S. firms.
That would affect AOL, Vradenburg
noted, which operates Europe's largest
online service but sends individuals'
data back to the United States for
processing.
But Jason Catlett, chief executive of
Junkbusters--a Web site that offers
software so Web users can remove
"cookies" commonly used to track
individuals--thinks legislation is
necessary. He said more than 80 online
privacy bills are pending in Congress.
Protecting children's privacy on the
Net is considered the most likely area
for legislation or government
regulations, but other areas include
medical records, financial data, and
online access and cross-referencing of
databases of personal information
about individuals.
Susan Scott, executive of TRUSTe,
which is promoting a logo to indicate
Web sites have posted privacy policies
that can be audited, said that about
80 Web sites have signed up for the
program so far. But she said TRUSTe's
board is actively approaching chief
executives of the top 100 Web sites
about signing up for the program.
She also said that the Internet
Content Coalition, a trade group for
Web content sites, is close to
endorsing TRUSTe. She said she has
commitments from Warner Brothers,
Sony, the New York Times, ZD Net, and
CNET: The Computer Network (publisher
of NEWS.COM) to post privacy policies
and join TRUSTe.
Similar discussions are also under way
with ISA, and Scott thinks those may
give an impetus to her group's
efforts.
In recent public settings, Fena said,
Clinton e-commerce adviser Ira
Magaziner has signaled self-regulation
advocates that the window of
opportunity for private-sector
initiatives instead of federal ones is
closing rapidly.
"[Self-regulation efforts to date] are
certainly not enough to sway the
decision," Fena said.
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Received on Sat Mar 14 04:59:05 1998