A Senate Commerce Committee hearing highlighted the sharp divisions between members of the Federal Trade Commission over the agency’s legislative quest for authority to regulate the Internet. Last week’s hearing, chaired by Senator John McCain, focused on an agency’s request based on a staff report that alleged the industry isn’t doing enough to protect personal privacy.
While Chairman Robert Pitofksy and two other commissioners defended their request, Commissioners Orson Swindle and Mozelle Thompson said legislative action was premature because industry policies protecting personal privacy are working.
Pitofksy said the report — that claimed only one-fifth of the 335 busiest Internet sites sampled met fair information practice principles – demonstrated that industry efforts to protect the privacy of its users are “insufficient.” He felt the result proved the need for legislation giving the agency authority to regulate the Internet.
Commissioner Sheila Anthony said the legislation was needed because a vast majority of Internet sites post privacy policies that “are confusing and contradictory.” Commissioner Thomas Leary suggested some form of legislation was necessary, but should apply equally to online and offline commerce.
Besides describing the majority’s request premature, Swindle called the report it’s based on as “embarrassingly flawed” because it did not measure whether the sites survey “actually provide access and security.” He also predicted that government intervention would create more problems than it would solve.
Thompson expressed disappointment over the study’s results and said any Internet privacy legislation should not be “a substitute for well-crafted industry self-regulatory programs.”
Also testifying at the hearing were Jason Catlett, president/CEO Junkbusters Inc., and Jerry Berman, executive director, Center for Democracy and Technology, both of whom supported the FTC’s recommendations; and Jill Lesser, America Online’s vice president, public policy, who opposed the move.
No mention was made during the hearing of a bill introduced earlier in the week giving the FTC the authority sought by its majority. Action on the bill was seen by Capitol Hill observers as doubtful, the result of a shortened legislative session because of the November elections and possible changes in Congressional membership.
