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PRIVACY
ISSUES: DATA COLLECTION AND USE
OF PERSONAL INFORMATION
(last updated 02/01/02)
Issue
Will Congress or the Administration dictate the methods for collecting
personal information, whether this information can be sold to interested
parties, and ultimately how this personal information is used?
Importance
Personal information, i.e. name, telephone number, and address, available
in the public domain and collected by a variety of information gathering
techniques, is core to the direct marketing strategies that are used to
identify prospective customers. Laws constraining the definition of personal
data and its usage in targeting customers will force businesses to spend
more time and money identifying potential customers. Telemarketers have
a vested business incentive to protect personal data of their consumers
as failure to do so risks damaging the relationship with the customer.
ATA Position
ATA supports the idea that self-regulation within industry will alleviate
growing concerns over the use of personal information, while at the same
time allowing businesses to target their products to the appropriate consumer
segment. ATA favors an "opt out" strategy as fully capable of
providing the required level of consumer protection. ATA opposes any form
of an "opt in" policy as excessive, unnecessary, and imposing
an overly restrictive burden on industry.
Background
With increased ease in gathering personally identifiable information,
made possible by technological advances, businesses have increased their
use of consumer databases and data mining as a means of identifying those
customers who are more likely to have an interest in buying their products.
Some of this information, particularly names, addresses, telephone numbers,
e-mail addresses are readily available from electronic phone books and
other public databases.
Other more detailed
personal information such as hobbies, interests, opinions, etc. is gathered
by websites or through loyalty programs where businesses ask their customers
to voluntarily supply this information so that the business can better
target their message and/or products to their customers. Whether or not
this information is ultimately sold to a third party is decided by the
business collecting the information. More importantly, this information
may be collected without prior notification to the targeted individuals.
The federal government
continues to explore methods to further define what is personal information,
whether or not such information is sensitive, and whether businesses may
sell this information with or without consent of the individual to interested
third parties.
As in the 106th Congress,
several bills have been introduced in the 107th Congress to regulate the
collection and use of personal information. The Congressional Privacy
Caucus was established to address privacy issues and has begun to issue
position statements on several issues, including:
- Sale of customer
proprietary network information (PNI) such as location, duration, and
frequency of phone calls;
- Notifying customers
on the type of information collected and how it will be used; and,
- Customer access
to their personal information.
The Congressional
Privacy Caucus supports the requirement that businesses must receive the
consent of individuals before personally identifiable information is sold
to a third party. Companies would also have to clearly outline what information
they collect and to whom they provide this information. Individuals will
also have the right to "opt out" or prohibit the company that
collects their information from selling it to a third party.
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