Online
Privacy Alliance Testifies On Proliferation of Privacy Policies
That Protect Consumers Online
Christine
Varney Tells Congressional Subcommittee that More Than Two-Thirds
of Web's Most Trafficked Sites Have Posted Privacy Notices
WASHINGTON, D.C. (May 27, 1999) - The Online Privacy Alliance,
a coalition of global companies and associations committed to
the effective self-regulation of consumer privacy online, today
told a Congressional subcommittee that privacy policies have proliferated
in less than a year and that self-regulation of Internet privacy
is working.
Speaking for the OPA, Christine Varney told the House Subcommittee
on Courts and Intellectual Property that the results of a recent
survey conducted by Georgetown University professor Dr. Mary Culnan
revealed impressive success by the private sector in making respect
for privacy online the norm.
The Federal Trade Commission (FTC) last year conducted a survey
of privacy policies and the Georgetown survey was conducted at
the FTC's request to provide a snapshot of the status of privacy
protection online.
Ms. Varney, a former commissioner with the FTC, said that last
year's FTC Web survey found that only 14 percent of all Web sites
had posted policies informing consumers of what information was
being collected, why and how it would be used. This year, in a
sample drawn from the Net's 7,500 most popular sites, nearly 66
percent of the sites had posted privacy policies.
"The
leap from 14 to 65.7 percent shows that privacy policies are proliferating,"
she said. "We believe that when American consumers see more than
two-thirds of the Internet's most heavily trafficked Web sites
posting privacy policies, it is possible to talk about respect
for consumer privacy becoming the norm online. It is a remarkable
change."
Ms. Varney noted that the results of the survey of the Web's Top
100 most popular sites were even better -- 94 percent now privacy
disclosures, up from 71 percent last year. The unduplicated reach
of these Top 100 sites is 94.4 percent, while the reach of the
larger sample is 98.8 percent.
But, she noted, the survey also showed that much work remains
to be done. The private sector must work to increase the number
of Web sites posting privacy policies and it must renew efforts
to make sure that all privacy policies provide consumers with
the information they need to make informed decisions about how
much information to share, with which sites and when.
Credible privacy policies that meet the guidelines set out by
the Online Privacy Alliance must tell consumers what is being
collected, why, provide a choice in how the data is used and contain
information on access, security and recourse. The policies must
be easy to find, easy to read and easy to understand.
"Consumers
now have to take the initiative and use the tools available,"
she said. "They must look for privacy policies, read them and
make the choices offered. They must remember on the digital street,
as they do on Main Street, to think before sharing personal information."
Ms. Varney said new legislation was not needed since the private
sector was taking the required steps to protect privacy. But she
urged the government to keep the spotlight on this issue by prosecuting
bad actors.
"Recent
actions by the FTC show that government has the laws and rules
to police privacy online and we strongly encourage them to do
so. We believe the government has a critically important role
to play, but we do not believe legislation is needed because the
private sector already is addressing the issue quickly and effectively,"
she said.