Virginia Internet Panel Recommends Tougher Spamming Policies
Bloomberg News
December 2, 1998, 3:00 p.m. ET
Virginia Internet Panel Recommends Tougher Spamming Policies
Washington, Dec. 2 (Bloomberg) -- A panel including America
Online Inc. Chief Executive Steve Case and MCI WorldCom Inc. Vice
Chairman John Sidgmore recommended that the state of Virginia
adopt tougher rules to fight the growing problem of unsolicited
junk e-mail, known as spam.
Republican Governor James Gilmore's Commission on
Information Technology included the anti-spamming item in its
proposal for Virginia's first comprehensive Internet policy. The
report recommends that Virginia let industry lead on Internet
issues while saying that better consumer protections are needed
to combat fraud and obscenity online, including child
pornography.
State and federal lawmakers are struggling with how to
regulate the Internet, if at all. ''There are important federal-
state jurisdictional issues that need to be worked out with the
Internet,'' said Bill Whyman, an Internet analyst with Legg Mason
Wood Walker Inc.'s Precursor Group.
President Clinton recently signed a bill to ban all new
taxes on the Internet for three years. Yesterday, U.S. House
Speaker Newt Gingrich named Gilmore to the 19-member panel that
will develop a nationwide strategy for Internet tax issues, along
with Time Warner Inc. President Richard Parsons and Charles
Schwab Corp. President David Pottruck.
The Virginia report, which leaves the tax issue to the
national panel, suggests the state expand current fraud laws to
prosecute companies that send junk e-mail. Spamming violators
could face fines of at least $500 per violation, the report says.
U.S. lawmakers introduced several bills to fight spamming this
year, but the U.S. Congress couldn't agree on a law.
Virginia's technology panel also recommended that the state
require schools and libraries to adopt so-called ''appropriate
use'' policies that would prevent access by children to obscene
material.
Laissez-Faire
The Virginia report follows the laissez-faire lead of the
White House. And it comes as expectations for the Internet and
online commerce are exploding. Market researcher Boston
Consulting Group projects that online retailing is increasing
more than 200 percent annually and merchants will sell $13
billion of goods this year through the Internet.
The Virginia report suggests that ''government's role should
be minimal and only to encourage the growth of the medium,'' said
Donald Upson, who was named Gilmore's Secretary of Technology in
May and is chairman of the technology commission. ''Elected
officials are not able to effectively keep pace with changes in
the industry.''
The report supports industry self-regulation efforts to
protect privacy online, such as the Online Privacy Alliance,
which represents AOL and more than 70 other companies.
Gilmore, recently dubbed the ''Nation's Internet Governor''
by Case, wants to attract high-technology companies to the state
and limit regulation that could stifle growth of electronic
commerce.
''Virginia owes its voters and children a reasonable effort
to keep this growth in the state and to assist that growth where
and whenever it makes economic and social sense,'' said William
Schrader, Chief Executive of Herndon, Virginia-based PSINet Inc.
AOL, MCI WorldCom's UUNet Technologies Inc. unit, and Network
Solutions Inc. also have headquarters in the state.
Gilmore also wants Virginia's Internet policies to serve as
a framework for other states, Upson said. ''Different states have
done different things, but they all need to be connected as a
comprehensive policy.''
California and Nevada are also at the forefront of
developing Internet policies.
The Virginia report was released at a day-long digital
commerce event in Williamsburg. Speakers included Schrader and
U.S. House Commerce Committee Chairman Thomas Bliley, a Virginia
Republican.
--Alan M. Wolf in Washington (202) 624-1880 /ah |
