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When Congress returns next week for a busy fall, privacy and online marketing
will be on the agenda. The focus is expected to be on financial privacy legislation
and growing concerns about spam.
But action is also possible on comprehensive privacy legislation introduced
by Senator Feinstein (D-CA) and Representative Stearns (R-FL).
Action on Financial Privacy Likely
Senator Shelby (R-AL), chairman of the Senate Banking Committee, might move
to propose stronger federal privacy protections, including limits on data
sharing, according to a recent article in American Banker. Legislation like
this would set a bad precedent for other potential privacy legislation and
would signal continued support for "opt-in" privacy provisions.
California this week passed the most comprehensive financial privacy legislation
of any state. It requires financial institutions to obtain the permission
of customers before sharing their personal data with outside companies instead
of just notifying them the option to opt-out, as federal law now requires.
Industry groups are pushing Congress to extend a provision of the Fair Credit
reporting Act that prohibits states from restricting information sharing between
companies within a corporation.
DMA Weighs in on Spam
In a move to preempt action by Congress and state legislatures to institute
tougher anti-spam laws and regulations, the Direct Marketing Association (DMA)
has begun work with law enforcement officials and regulators on the issue.
They are working to develop a technology group that will attempt to shut down
the most prolific users of bulk email. A recent New York Times article notes
that at least 8 different bills on the spam issue could be introduced in Congress
when they return from recess.
New "Do-Not–Fax" Rules Delayed
The Federal Communications Commission (FCC) has delayed the effective date
of new regulations governing unsolicited faxes until January 1, 2005. The
rules, originally scheduled to take effect August 25, are a sweeping "opt-in"
measure that requires prior written consent to send any faxes promoting any
goods or services for which a fee is charged. Under the new regulations, there
would be no exception for organizations that have an "established business
relationship" with current customers or group members.
The delay was in response to petitions filed by numerous business organizations
and associations that raised a variety of concerns regarding the new FCC regulations.
It will allow the FCC to consider any petitions for reconsideration and other
filings.
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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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