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Privacy Tops the List of Consumer Issues

- by Carol Conway

 

Along with the blessings that the technology revolution has spawned in the past 25 years have come troublesome issues to take someof the bloom off the rose bush. No one has to be reminded of the havoc and anxiety that viruses and "worms" have inflicted on business and government over the years. And it wasn't that long ago when heavily trafficked Web sites such as Amazon, Yahoo!, E*Trade and a few others were virtually brought to their knees by hackers who were eventually caught. While scientists and technology specialists devote thousands of man-hours to counteract these intrusions, we can expect such problems to exist for as long as the world is computer dependent. And that means forever.

While viruses and hackers are significant, there's another technology-based issue that's high on the list of problems in cyber world. It's the matter of privacy. First we need to consider the use and abuse of personal information that is transmitted via the Internet. Equally perplexing is the internal matter of privacy as it relates to the confidentiality of material that employees receive and transmit at their desks. In my next column I'll explore the growing tensions over whether an employee's use of a computer really is or should be private.


No one has to be reminded of the havoc and anxiety that viruses and "worms" have inflicted on business and government in the past year or so.

A major concern regarding Internet privacy is the theft of social security numbers and other forms of "identity theft" that allows scavengers, using what is called "spyware" - software that tracks people's Web surfing and buying habits - for exploitative purposes. The proliferation of "spyware" usage has given rise to a whole new industry - companies that are hired specifically to help businesses track cyber thieves.

The question of how Internet companies use information gathered from ordinary citizens is of great concern to consumer advocate groups and government leaders. A recent issue of CRN Magazine cited a survey showing that 62 percent of Americans want new laws to protect online privacy. Many consumers fear that the personal information that they offer during an e-commerce transaction won't be kept confidential. Industry observers say that this growing fear of lost privacy could seriously stunt the growth of e-commerce until consumer confidence is solidly established.

Two other major areas of consumer privacy concern are health care and banking, industries in which information dealing with consumer profiles is both prominent and vulnerable to exploitation.


Many consumers fear that the personal information that they offer during an e-commerce transaction won't be kept confidential.

Regarding health care, Congress passed the Health Insurance Portability and Accountability Act (HIPAA) that includes requirements for keeping electronic data about patients secure and private. In 1999, the Gramm-Leach-Bliley Act was passed, requiring banks and securities firms to create and disclose policies on how they handle data relating to their customers. You've probably been receiving many of these in the mail.

These are two of the more prominent pieces of privacy legislation coming out of Washington. A number of other bills are pending and bear watching in the coming months. Here are some of the more notable ones:

  • The Online Privacy Protection Act would require the Federal Trade Commission to protect the privacy of personal data collected from and about individuals.
  • The Social Security Online Privacy Protection Act would regulate the use of social security numbers by on-line, interactive computer services. There are similar provisions in the proposed Identity Theft Protection Act.
  • The Spyware Control and Protection Act would require that software made available to the public include notice if it includes "spyware." The Electronic Privacy Protection Act goes even further, making it unlawful to create or install "spyware".
  • Investigate the various options for surge suppressors that can often help to minimize electrical damage.
  • The Privacy Commission Act would create a Commission for the Comprehensive Study of Privacy Protection.

The fact that the federal government is so preoccupied with Internet privacy is a clear sign of how far-ranging this consumer issue has become. A column of this length can only scratch the surface in trying to do justice to such a complex topic but I'd recommend that business owners and consumers alike keep abreast of the rapidly changing area of privacy protection. There's a lot at stake for all concerned.


Carol Conway is the owner of CRS Technology. She may be contacted at carol@crsonline.net.

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Privacy Tops the List of Consumer Issues