Privacy

Background

In order for e-commerce to reach its potential, consumers must have confidence in sharing personal information as part of an online transaction. Yet overly burdensome and inflexible rules restricting what kind of data is or may be collected, how it may be used and how consumers may limit such uses could impose high costs on business and stifle the growth of e-commerce.

ERA believes that self regulation is preferable to governmental regulation for addressing most privacy concerns. Self regulatory approaches allow for more rapid and consumer-personalized response to privacy concerns without saddling e-commerce with burdensome, heavy-handed, or unnecessary regulations. Moreover, industry segments and consumer groups are exploring technological approaches that may respond more effectively than inflexible laws and regulations to privacy issues.

ERA believes that federal standards governing uniquely sensitive information - such as health or medical data and financial and credit records - may be appropriate in limited instances. Government should, however, balance privacy concerns against businesses' interests in sharing or purchasing data that will enable them to compete in today's economic marketplace, as well as the benefits to consumers - such as convenience, personalization, and protection against fraud and identity theft - made possible by access to personal data.

ERA opposes privacy legislation that targets the Internet or e-commerce by seeking to impose additional restrictions that discriminate between online communications and other media. ERA also opposes any legislation that does not establish a nationwide standard or that does not preempt state laws.  ERA further believes that any privacy legislation must balance carefully consumer interest in having access to data about them against the risks that such access poses to data integrity and security. ERA opposes mandatory opt-in procedures requiring site operators to get affirmative consent to use personal data, except for sensitive health or medical data and ERA is working to provide appropriate lawmakers with information necessary to make educated decisions.

• Click here to visit the FTC's webpages on privacy initiatives