To: rupert1 who wrote (61206 ) 5/12/1999 4:19:00 PM From: rupert1 Respond to of 97611
WSJ More Web Sites Are Disclosing How Data Are Used, Study Says Associated Press WASHINGTON -- An industry-financed study released Wednesday shows a dramatic improvement in the number of companies on the Internet that tell consumers how personal information collected about them on Web sites is used. The report is expected to help define the role the federal government will play in regulating parts of the Internet, used by roughly 100 million Americans. Results from the survey showed that nearly two-thirds of commercial Internet sites displayed some warning that businesses were collecting personal details from visitors, such as names, postal and e-mail addresses. A similar government study last year found that only 14% of sites adequately warned how companies used private information they collected about customers. Some Web sites sell the information to third-party advertisers and others. The Federal Trade Commission, expected to recommend to Congress this summer whether new Internet privacy laws are needed, has said it wanted to see results from the latest study before making any decisions. 'Remarkable Increase' FTC Commissioner Robert Pitofsky said Wednesday that Internet companies "deserve considerable credit for making progress over the last year." "There is a remarkable increase in the number of Web sites posting information about their privacy practices," Mr. Pitofsky said. Industry groups argued before they knew results of the study that merely doubling the number of sites with privacy notices from last year's 14% would represent substantial progress. Instead, the study -- which looked at 364 commercial Internet sites -- found almost 66% with privacy notices. "It's a very happy development," said Harriet Pearson of International Business Machines Corp., which helped pay for the study. "I hope that policy makers take a look at these numbers and are encouraged by the progress and increase their determination to work with the private sector .. rather than resort to additional, broad laws applied to the Net." Some of the largest companies on the Web, including IBM, America Online Inc., Microsoft Corp., Compaq Computer Corp. and eBay Inc., paid a total of $60,000 for the study, conducted by Georgetown University business professor Mary J. Culnan. Troubling News But there was troubling news in the survey, too. While most commercial Web sites now explain to consumers how personal details are used, fewer than 10% of those sites had what experts consider comprehensive privacy policies. Those sites notified consumers, gave them the chance not to have their personal information collected, allowed customers to review their information, promised to keep the information secure and explained how to contact the company with questions. "We have a survey that says only 10% of this narrow slice of the Web is providing notice that we think is the critical first step," said Deirdre Mulligan of the Washington-based Center for Democracy and Technology. "Notice is clearly not enough." The White House has agreed so far to allow the industry to develop its own guidelines because of concerns that federal intervention could stifle the growth of electronic commerce. "There will be people who will continue to call for legislation, but I think the message here is that this is working," said Christine Varney of the Online Privacy Alliance, an industry group. "The last thing we need to do now, since this is working, is to have government intervention in the marketplace," she said. The Clinton administration has generally taken a carrot-and-stick approach, holding off calls for new laws. But last summer, Vice President Al Gore warned executives that unless the industry takes adequate measures to protect consumer privacy, "we will be obliged to take action ourselves."