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Privacy
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Issue Summary
With public concern over the protection of their personal data rising, there has been mounting pressure at both the federal and state level for a legislative or regulatory "fix". While ever more companies are acknowledging the importance of privacy protection as a general matter, opinions over how to best address the issue differ widely. Many U.S. companies prefer a self-regulatory approach based on private sector privacy codes and seal programs. Others, however, have begun to examine core privacy principles that could form the basis for preemptive federal legislation in an effort to stave off the chaos that would result from a multiplicity of divergent action at the state level.
Beyond the question of how to address privacy is the even more vexing question of just exactly what should be considered as part of the debate. Strong disagreements exist over a host of complex questions, such as whether to address just the on-line world or to extend the debate to the off-line world as well; what measures could reasonably be taken to ensure parity between the private sector's treatment of personal information and that of the public sector; how to balance the need for security off against the desire for access; and where the line should be drawn between a regime based on allowing consumers to opt-out versus one where they must opt-in.
As lawmakers seek to deal with this issue, well-intentioned, but misguided overreaching is a very real risk. If there is to be any legislative action, it is essential that it be a balanced approach that is sensitive both to the needs of consumers as well as to the Internet's economic and technical realities. Legislation that goes too far could lead to fewer online benefits or services, higher consumer costs, and less free content, inadvertently harming the very consumers it sought to protect. On the other hand, the absence of any activity at the federal level could leave the field open for States to put in place a patchwork of conflicting laws that would cripple e-commerce.
Sun's Position
- Sun is committed to respecting the online privacy of our customers. Consumer confidence in online transactions is essential to the growth of e-commerce. To ensure that confidence, companies must be able to predictably and reliably protect their customers' personal information.
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Absolute privacy would actually be a disservice to the average consumer. Since information is the currency of the digital age, allowing for its flow provides individuals with something they value -- choice. Enabling consumers to provide information in exchange for a benefit or service empowers the individual.
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Balance is important. Some Members of Congress have already begun to acknowledge the two "dirty little secrets" of the privacy debate. "Companies may be well served by privacy, and consumers can be well served by information sharing." Online consumers should be allowed to balance their privacy desires with their desire for various other benefits afforded by ecommerce, such as more personalized services or products, lower prices, and greater convenience.
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The problems associated with the sharing of personal information far pre-dated the advent of the Internet. In fact, today's digital technology affords more opportunity to protect and control the uses of our personal information than at any time previous.
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Any legislation attempting to deal with the question of online privacy must have federal preemption as its starting point. Should each state be permitted to put in place its own set of privacy laws, it would create a patchwork of conflicting regimes that would hobble the growth of e-commerce.
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Lawmakers should use a light touch in dealing with privacy, building upon the self-regulatory approach already achieving good results in the private sector rather than saddling companies with excessive mandates. Those companies that establish, and comply with, appropriate privacy policies will achieve a competitive advantage in the marketplace as they earn the trust of consumers. Those that do not will soon find themselves without customers.
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The breadth and complexity of this issue make it especially important to proceed in a deliberate and reasoned manner in order to make sure we get it just right. Rushing forward without a thorough examination of possible unintended consequences would be a disservice to companies and consumers alike.
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As long as consumers are supplied with clear and conspicuous notice of a company's information practices, enforcement of any federal privacy mandates should be left to the Federal Trade Commission under its existing authority. Legislation should not create any new private rights of action. Doing so could open the floodgate on litigation and impose a crippling level of liability on companies.
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