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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: rupert1 who wrote (61251)	5/13/1999 9:18:00 AM
From: rupert1	Read Replies (1) \| Respond to of 97611

Anothe background piece on the internent - not COMPAQ specfic but COMPAQ has an interest in the study. New Internet Privacy Laws Appear Less Likely With Release of Survey By JOHN SIMONS Staff Reporter of THE WALL STREET JOURNAL WASHINGTON -- Armed with a new study showing recent improvement in the way Internet companies handle consumers' personal information online, the Clinton administration is likely to back away from threats to press for new privacy laws. Georgetown University's business school released a much-anticipated survey of online privacy practices that showed two-thirds of the Web's most popular commercial sites have some type of policy governing how they treat consumer data. The survey canvassed 364 sites that draw roughly 99% of the Web's traffic. Government officials and industry representatives commissioned the study last year to gauge how far companies intrude on consumer privacy on the Internet. America Online Inc., American Express Co., Compaq Computer Corp., eBay Inc., Microsoft Corp., and Time Warner Inc., among other companies, underwrote the study. A more extensive survey conducted last year by the Federal Trade Commission found that only 14% of commercial sites informed consumers of how they use personal information and gave them a chance to opt out. It also found that 89% of children's sites collected information from children, while 24% posted privacy policies and only 1% required children to get parental consent before divulging personal data. Following that report, the FTC recommended legislation to protect children's privacy online, which was approved by Congress last fall. Vice President Al Gore and FTC Chairman Robert Pitofsky threatened the industry with broader privacy measures if it failed to police itself. "If the [Georgetown study's] raw numbers are any indication, self-regulation is working," Mr. Pitofsky said Wednesday. Collecting demographic data -- such as a consumer's income, age, address and telephone number -- has become an important function of any business, helping track customers and their habits. On the Internet, this is easier and more prevalent. Companies are able to glean all manner of consumer data in clandestine ways, using "cookies" or computer files that can track a consumer's Web surfing habits and thus note his or her interests. According to the Georgetown survey, 93% of Web sites collect consumer information. Privacy advocates had hoped that the survey would provide clear proof that privacy violations are rampant on the Web. But, according to the survey, 239 of the 364 sites surveyed post a privacy policy of some sort. Of the sites that have a clear policy, 87% explain how they collect data and how they plan to use it; 77% offer consumers a choice with regard to how their information is used; 40% give consumers some type of access to their data; 46% guarantee the data's security; and 49% offer a way to contact the company. Industry advocates hailed the results. "This is far, far better than things used to be. The government's encouragement has been very helpful," said Christine Varney, head of the Internet practice group at Hogan & Hartson, a Washington law firm. "All along, the administration and Congress have evidenced their preference for the market to provide solutions. This has just validated their expectations." But critics note that the survey didn't address how sites enforce their policies. Marc Rotenberg, executive director of Washington's Electronic Privacy Information Center, said the privacy policies amount to "nothing more than digital fine-print." "For us it was never about posting privacy policies," Mr. Rotenberg said. "That's setting a very low bar. Look at cable records, banking, video rentals -- there are laws to protect that information. None of that exists for online commerce." Jerry Berman, director of the Center for Democracy and Technology, an industry-funded public interest law firm, suggested that a combination of industry self-regulation and legislation might provide better consumer protections. "Congress has to set some benchmarks," he said. "They can't be overly burdensome, but some rules of the road have to be out there." Based on the Georgetown survey's findings, the FTC will submit a report to Congress next month. Despite the new evidence of industry self-regulation, Sens. Ron Wyden (D., Ore.) and Conrad Burns (R., Mont.) will continue to push for legislation they proposed last month to require that commercial Web sites have clear and conspicuous privacy policies and an opt-out option for consumers. Hearings are expected to begin in the Senate Commerce Committee in early June.