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Protecting Against Privacy Problems
Posted By Jason Mark Anderman On June 1, 2001 @ 12:00 am In Computer Security | No Comments
If e-commerce firms fail to consider issues regarding privacy, they may create an environment ripe for legislative encroachment, future Federal Trade Commission (“FTC”) actions and class action lawsuits. Privacy breaches pertain to a wide range of information collected by Web sites, from addresses, telephone numbers, email addresses and text entries to specific user interests found in registrations and mailing lists. This kind of information is called personally identifiable information (“PII”). In June 1998, the FTC submitted a report to Congress regarding online privacy. This report highlighted five key principles which the FTC recommends e-commerce sites employ in order to promote consumer privacy:
Under COPPA, the FTC developed a rule which mandates, among other requirements, detailed notice of PII collection and verifiable parental consent prior to disclosures, parental bans on further collection and dissemination, disclosure limits tied to a child’s participation in games and prize offers, and security procedures holding children’s information confidential. E-commerce firms offering financial services should also ensure compliance with the Gramm-Leach-Bliley Financial Modernization Act, which also imposes substantial privacy responsibilities.
This article, which may be considered advertising in certain jurisdictions, does not purport to give legal advice pertaining to any particular situation and creates no attorney-client relationship. Readers should seek professional legal advice concerning any particular situation they face.
Jason Mark Anderman practices in Goodwin Procter’ s Intellectual Property/Technology Practice Area. He can be reached at firstname.lastname@example.org.
Copyright Â© 2001 Goodwin Procter LLP. All Rights Reserved.
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