LEGISLATIVE UPDATE
Kids in the Know Proposes Changes in
Children's Lists Legislation
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In This Update:
Alliance Presents Changes to Children's List Bill Series of New Privacy Laws Introduced in Senate
Series of New Privacy Laws Introduced in Senate
COPPA Rules Update
As Senator Wyden (R-OR) prepares to reintroduce a version of the Children's Listbroker Privacy Act that he offered last year, Kids in the Know has made recommendations about how to modify the measure to ensure it does not harm organizations that serve children and families. The 2004 Wyden legislation would have prohibited the sale of lists of children under the age of 16 without first getting parental consent. Key elements of our recommendations include:
• Dropping the age covered by the bill from to under 13. Kids in the Know has argued that this would make the legislation consistent with children's online privacy laws, and it recognizes that there is a big difference between mailing to a 14 year old, for example, than to a six year old.
• Allowing the use of lists of children under the age of 13 as long as the mailing is addressed to the parent.
• Authorizing teachers and other school officials to continue to serve as gatekeepers for certain in-school programs, consistent with existing student-privacy laws.
• Incorporating the concept of "implied consent" to specify that if a parent or school official chooses to show marketing material to a child for whom they are responsible, they are assumed to be consenting to the child seeing it. Likewise, if the parent or teacher shares information with an entity, their consent would be implied.
Senator Wyden plans to reintroduce the legislation soon. His staff is considering our recommendations, as well as other ideas. Kids in the Know will continue to work with him and Senator Stevens (R-AK), a cosponsor of the Wyden bill last year andİthe new Chairman of Commerce Committee, as well as Representative Hooley (D-OR), who is expected to introduce similar legislation in the US House of Representatives.
New Privacy Bills Introducedin U S Senate
Comprehensive Measure Has Notification and Opt-out Requirements
Senator Diane Feinstein (D-CA), a longtime activist on privacy issues, has introduced three privacy-related bills. While her primary focus is on identity theft, parts of the measures would have an impact on all direct-mail users.
Privacy Act - The Privacy Act, which was also introduced in 2003, is broad legislation that covers everything from the use of Social Security numbers, identity theft, the use of financial and medical information, and a number of other privacy issues.
The primary concern for Kids in the Know members is the provision that would limit commercial entities from sharing personally identifiable information with third parties unless they provide specific notice on the information's use. The broad notice requirements require businesses to provide consumers the following types of information: the identity of the entity collecting the information, the type of personal information collected, how the information will be used, a description of categories of potential third party recipients of the information, and how an individual may decline (opt-out) of having the information used or sold. They would then also be required to honor requests to opt-out.
Businesses may collect and use personally identifiable information if it is used to market only that business' product or service, and is not shared with another entity. Nonprofit organizations are also exempt under the proposed legislation.
Notification of Risk to Personal Data Act -This legislation would require businesses and Federal Agencies with databases containing personal information to notify consumers whose information was stored in the database if there was a breach of security to the system. Personal information is defined as last name, plus one of the following; social security number or drivers license numbers, bank account, credit or debit cards numbers. "I strongly believe individuals have a right to be notified when their most sensitive information is comprised," Feinstein said in a statement.
Social Security Number Misuse Prevention Act - The final bill introduced by Senator Feinstein, it would limit the misuse of social security numbers and establish criminal penalties for such misuse, and for other purposes.
FTC Considers Online Privacy Rule Change
The Children's Online Privacy Protection Act (COPPA), which took effect in 2000, requires Web sites targeted to children to obtain parental consent before collecting information from children under age 13. Commission (FTC) has now proposed permanently adopting a temporary provision for obtaining parental consent. The so-called "sliding scale" approach for obtaining parental consent is scheduled to expire April 21, 2005.
When COPPA was enacted, the FTC and Congress assumed developments in technology would allow cheaper ways of obtaining consent would be available by now. But, as the FTC writes, "the expected progress in available technology has not occurred. "If the sliding-scale rule expires, "website operators would have to optain verifiable parental consent using the more reliable (and costly) methods for all uses of personal information."
The current rule allows Web sites that collect personal information for internal use only, to obtain parental consent through e-mail. If they distribute information to third parties they must use more stringent methods of verifying consent, such as a printed consent form, toll-free phone number, or by other more secure means.
Their is strong support among Web site operators and others in the business community for indefinitely extending the regulations, and no significant changes to the existing rules are expected.
For more information about the issues outlined in this update – or for information
about other Kids in the Know’s activities – send an e-mail to info@kidsintheknow.org.
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