Even though legislation on this issue is not likely to be passed this year, the outcome of the ongoing conversation will have a significant impact.
With the former, an opt-in strategy is required; the latter would need only an opt-out approach. Personally identifiable information defined by the legislation consists of all identifiers, such that there is a "substantial likelihood that the identifier would permit the physical or online contacting of a specific individual."
Bills such as this entirely misunderstand why privacy protection is needed to protect individuals from the misuse of personal information. What's more, policymakers will achieve little by singling out the online world, because technological progress has made data sharing and amalgamation between online and offline entities virtually effortless.
Recall what happened after Internet advertising giant DoubleClick bought catalog marketer Abacus Direct in 1999. The company then announced plans to merge consumers' offline purchasing habits with information on what Web sites they visit. If Abacus' and DoubleClick's data were combined, the surfing behavior of many individuals could now be directly linked to personally identifiable data. Several class-action lawsuits were immediately filed, and DoubleClick subsequently agreed to modify its policy.
Because of the prolific combination of online and offline databases over the past few years, it may make more sense for legislators to focus on what information is collected and not necessarily on who collects it. For example, the Electronic Privacy Information Center notes that many businesses such as supermarkets use membership card technology to create detailed profiles of individuals' consumption habits, often without providing any notice to consumers.
New approaches such as P3P, though complicated and imperfect, provide a reasonable first step in allowing consumers to choose the level of protection that they desire.
We need a more reasonable, common sense way of dealing with privacy issues. Privacy is not discrete, and different consumers prefer varying degrees of privacy. An isolated solution that specifically targets the online world will likely not provide the best fit for consumers.
New approaches such as P3P (Platform for Privacy Preferences), though complicated and imperfect, provide a reasonable first step in allowing consumers to choose the level of protection that they desire. Standards such as this have received growing acceptance in the Internet community.
Microsoft announced the Internet Explorer 6.0 would allow certain types of cookies only if the Web sites delivering them have a P3P policy that is acceptable to the user. Individuals can then set their browser settings to provide an appropriate level of protection.
Policymakers need to look carefully at their goals before haphazardly creating legislative or technological solutions. A carefully designed approach to addressing privacy concerns should follow practical concerns of information collection and not just online information collection.
Despite best intentions to address a real issue, policymakers might otherwise just end up creating a new batch of problems.