Privacy: Issues, Policies, Statements - Industry Self-regulation
INDUSTRY SELF-REGULATION
Unlike the EU, the United States has relied primarily on industry self-regulation to ensure that Internet users receive an adequate level of privacy protection. Proponents of self-regulation argue that the breakneck speed of Internet growth, and its many successes, mandates against sweeping regulations that might stifle future development. U.S. businesses argue that self-regulation encourages industry to safeguard user privacy in order to boost consumers' confidence in the security of e-commerce transactions. In essence, business leaders believe that market forces will punish companies that breach privacy, causing them to lose business, while rewarding with increased sales those that protect privacy.
In the spirit of self-regulation, many e-businesses post privacy policies on their Web sites and permit opt-out avenues for users who don't wish to submit personal information online. When companies violate their own privacy policies, breach of contract suits and actions for deceptive business practices or false advertising can be brought against them. But this arrangement provides no penalties for failure to have a privacy policy, and such policies rarely cover the actions of third parties, such as network advertisers, who might acquire personal data online.
Detractors of self-regulation claim it can't be enforced. Thus it operates on the principle of caveat emptor ("let the buyer beware"), placing on consumers the responsibility of determining whether an online marketer is trustworthy and has the best interests of the consumer in mind.
FURTHER READING:
Anderson, Teresa. "Congressional Legislation." Security Management, March 2001.
Cohen, Sacha. "Thought Cop." InfoWorld, February 26, 2001.
Coyle, Karen. "Protecting Privacy." Library Journal, Winter 2001.
DiSabatino, Jennifer. "FTC OKs Self-Regulation to Protect Children's Privacy." Computerworld, February 12, 2001.
"First Privacy Bill Filed In 107th Congress." Electronic Privacy Litigation Reporter, February 5, 2001.
Frisone, Deborah. "Privacy: Is Big Browser watching? Privacy in the Internet Age." Commercial Law Bulletin, November/December 2000, 8.
Fox, Susannah, et al. "Trust and Privacy Online: Why Americans Want to Rewrite the Rules." Washington: Pew Internet & American Life Project, August 20, 2000. Available from www.pewinternet.org/reports.
Hetcher, Steven. "The FTC as Internet Privacy Norm Entrepreneur." Vanderbilt Law Review, November 2000, 2041.
Kelly, Shan. "Is Someone Watching You?" Information World Review, January 2001, 18.
Kemper, Cynthia. "Surveillance Software: Big Brother." Communication World, December 2000/January 2001.
Knopf, Allegra. "Privacy and the Internet: Welcome to the Orwellian World." Florida Journal of Law and Public Policy, Fall 1999.
McCullagh, Declan. "Smile for the U.S. Secret Service." Wired News, September 7, 1999. Available from www.wired.com.
Rombel, Adam. "Privacy and Security in a Wired World." Global Finance, January 2001.
——. "The Privacy Law Debate: Navigating the Privacy Law Divide." Global Finance, January 2001.
Thibodeau, Patrick. "Europe's Privacy Laws May Become Global Standard." Computerworld, March 12, 2001.
Tillett, L. Scott. "Pressure Builds For Privacy Laws." Internet-week, June 5, 2000.
Trombly, Maria. "FTC Seeks Input on Revisions to Credit Card Data Privacy Guidelines." Computerworld, January 1, 2001.
U.S. Department of Health and Human Services. "HHS Fact Sheet: Protecting the Privacy of Patients' Health Information." Washington: GPO, April 23, 2001. Available from aspe.hhs.gov.
U.S. Federal Trade Commission. "FTC, Self-Regulation and Privacy Online: A Report to Congress." Washington: GPO, July 1999. Available from www.ftc.gov.
——. "Privacy Online: Fair Information Practices in the Electronic Marketplace." Washington: GPO, May 2000. Available from www.ftc.gov/reports.
User Comments Add a comment…