May 20, 2003
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LEGISLATIVE UPDATE
MAJOR PRIVACY BILLS INTRODUCED IN CONGRESS

Sen. Feinstein, Rep. Sterns Renew Focus on Privacy

Congress may once again turn its attention to privacy issues, as two sweeping new bills were introduced last month in the Senate and the House by two lawmakers who have long played a leading role on this issue. While both bills deal with a wide range of issues, and neither is focused on children, elements of both proposals could adversely affect Kids in the Know members and their information-sharing and gathering activities.

Comprehensive Feinstein Bill

Senator Dianne Feinstein (D-CA) introduced parental-consent legislation back in 1996, prompting the formation of Kids in the Know. Now, while moving away from a focus on children, she has returned to the issue and introduced The Privacy Act (S. 745) to combat identity theft and "give consumers more control over how their personal information is used."

This broad legislation covers everything from the use of Social Security numbers, identity theft, the use of financial information and a number of other privacy issues.

The primary threat to Kids in the Know members is the broad and consuming notice requirements. Organizations would be required to provide notices to individuals containing the following information:
  • The identity of the organization collecting the information
  • The type of information being collected
  • How the organization may use the information
  • A description of the categories of potential participants of the information

Also of note to Kids in the Know are the stipulations related to "non-sensitive personal information", such as names and addresses. The legislation would require companies that collect, market or sell this information to allow individuals to withhold this information (or opt-out) if they desire.

The legislation also applies to non-profits that would normally be exempt from coverage under the Federal Trade Commission Act.

Alternative Bill in the House

As Chairman of the House Commerce, Trade & Consumer Protection Subcommittee, Representative Cliff Stearns (R-FL) last year held a series of hearings on privacy issues and introduced comprehensive privacy legislation. Now he’s reintroduced The Consumer Privacy Protection Act of 2003 (HR 1636), which builds on last year’s measure.

A centerpiece of the legislation, affecting Kids in the Know members, are mandates for notice or privacy statement about the use personally identifiable information, and a requirement that consumers be allowed to limit the disclosure of their information to third parties. (The notice requirements are similar to those in S 745.)

The more controversial requirements include:

  • A clear and prominent statement of the fact the information is subject to sale or disclosure
  • The type of information that may be sold or disclosed
  • A description of each class of organization to which the information may be sold or disclosed

A provision also requires giving consumers the opportunity to limit the sale or disclosure of their personal information.

Student Privacy Lawsuits

The US Department of Education has yet to write regulations governing the student privacy provisions of the education bill signed into law in January 2002. But the focus on school information continues, as Representative Robert Andrews has introduced The Student Privacy Protection Act of 2003 (HR 1848).

The measure provides parents and students the right to sue schools for violating their right to privacy or access to their education records. While the bill would not harm Kids in the Know members directly, applying to long-standing privacy laws protecting school records, we may need to assist our school allies in addressing its concerns.



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