Regulations Internet Privacy -- Let Term Paper

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The same survey quoted by Ries noted that 92% of respondents do not trust online companies to keep personal information confidential and 82% believe that the government should regulate use of personal information by online companies. (FTC Study, 2-3)

If companies do not respond, not only will business stand in danger of being over-regulated by the government, but also consumers may not trust sites and withdraw their business. This was recognized, not by a liberal publication, but the stalwart defender of capitalism known as Business Week. To stem consumer privacy fears, the publication proposed a four-point plan to protect online consumer privacy through relatively non-invasive federal legislation. The plan has the added advantage of being similar to the data privacy requirements adopted by the European Union, another concern, given the increasingly international nature of internet commerce -- and it might be added the United States cannot afford to lag behind in regulating protections, for fear of being out of step with such a major international player, given that U.S. consumers might turn to the more privacy friendly European sites, if United States competitors continue to impinge upon their personal security unabated.

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The suggested plan would not limit online companies, but require free and fair disclosure of Internet privacy policies. The website would have to display its practices regarding consumer surveillance, allow consumers to opt out of giving information, show consumers the data that they were leaving with the company, and be required to 'play fair' with consumer trust.' The policy suggested by Business Week thus would require warning labels, but not stifle Internet freedom of commerce or expression.

However reasonable such regulations may be, however more may be necessary as social security numbers, student records, medical records, wireless communications, telephone calls, financial institution records, securities investments, motorists, consumer credit, and real estate transactions become available on the web. One may provide such information voluntarily, but one does not always shave control over the security protocols of where one leaves such data. However, the suggested mandatory disclosures and warning labels are an important, if incomplete first step.

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