[iwar] [fc:FTC.Backs.Off.Privacy.Regs]

From: Fred Cohen (fc@all.net)
Date: 2001-10-03 13:13:53


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Date: Wed, 3 Oct 2001 13:13:53 -0700 (PDT)
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Subject: [iwar] [fc:FTC.Backs.Off.Privacy.Regs]
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FTC Backs Off Privacy Regs
Associated Press 

6:20 a.m. Oct. 3, 2001 PDT           

WASHINGTON -- Federal Trade Commission chairman Timothy J.  Muris is to
announce Thursday that his agency will not seek stronger consumer
privacy laws. 

His position is a reversal of Clinton-era policy that said consumer
privacy laws were needed to protect personal data on the Internet. 

The decision carries more weight after the Sept.  11 terrorist attacks. 
Since then, many companies have been sharing their consumer data with
law enforcement agencies and each other in an attempt to look for
suspicious coincidences. 

Muris will instead increase the staff working on privacy issues by 50
percent, according to sources familiar with the chairman's plan.  The
extra people will let the commission police more websites and bring
lawsuits against violators. 

He also plans to target mass e-mail, also known as spam, sources said. 
The FTC will create a national list of companies that are bothering
consumers by sending excessive amounts of unwanted commercial e-mail. 

Several privacy groups expressed their dismay at the FTC's retreat.  In
a report to Congress last year, the commission called for laws that make
sure consumers know how their data is being collected over the Internet
and allow them to choose how it is used. 

"It's unfortunate that Muris should take this backwards step rather than
a more progressive step to safeguard consumers," said Sarah Andrews of
the Electronic Privacy Information Center. 

FTC spokeswoman Cathy McFarlane declined to comment on Muris's speech,
which will be delivered to a privacy conference in Cleveland Thursday. 
Muris succeeded Robert Pitofsky as head of the FTC in May. 

Muris's decision to drop support for new privacy legislation was first
reported by the Los Angeles Times in its Tuesday editions. 

Larry Ponemon, head of the Richardson, Texas-based Privacy Council, said
the decision will be another blow to privacy advocates already smarting
over the Justice Department's calls for fewer restrictions on
surveillance. 

"If the speech was delivered on Sept.  10, it would have been viewed as
a negative event in the privacy community," Ponemon said.  "Now that
it's delivered after the 11th, it's a crisis.  It looks like we've lost
federal government support."

Ponemon, a privacy consultant, said he has been contacted by companies
such as banks and a national supermarket chain asking how they should
tell consumers that they gave huge swaths of consumer data to law
enforcement. 

In many cases, Ponemon said, the companies sent the information on their
own initiative in order to assist the terrorism investigation.  Some
firms, such as airlines and car rental agencies, are breaking their
privacy policies by sharing data to analyze suspicious activity. 

During the presidential campaign, then-Governor Bush said he supported
Americans' rights to know how their personal information is collected
and how it is used.  But since the election, Bush has not had the
opportunity to act on any Internet privacy legislation. 

The White House did not immediately return a call seeking comment. 

Muris met with many advocacy groups in making his decision, and made no
secret of his reluctance for new laws, according to Ari Schwartz of the
Center for Democracy and Technology. 

"He made it very clear that he's looking for cases under existing
authority to take action."

Copyright © 2001 Associated Press

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