E-Commerce Commission Press Kit

Often today, consumers are not given the opportunity to block the gathering of information or,when they freely give it, to indicate how they would like that information to be used (for instance,whether the company should restrict its use to internal purposes, whether it can be disseminatedto external companies if specific conditions are met, or whether it can be widely disseminated).Some realize that their information has been sold without their knowledge or consent when theyreceive unwanted e-mail. Some may see the positive side to data collection and direct marketingthe next time they go to buy a book and are presented with suggestions of new releases in keepingwith their interests and past purchases. Nevertheless, they want some control over when and howtheir data are collected and used.In order to empower consumers to have control of their own personal information, the U.S.government is encouraging the private sector to establish codes of conduct and self-regulation.To be meaningful, the government believes that self-regulation must do more than articulate broadpolicies or guidelines. Effective self-regulation involves substantive rules, as well as the means toensure that consumers know the rules, that companies comply with them, and that consumershave appropriate recourse when there is noncompliance. Consumers need to know the identity ofthe collector of their personal information, the intended uses of the information, and the means bywhich they may limit its disclosure. They should be given the opportunity to exercise choice withrespect to whether and how their personal information is used. Companies creating, maintaining,using or disseminating records of identifiable personal information must take reasonable measuresto assure its reliability for its intended use and must take reasonable precautions to protect it fromloss, misuse, alteration, or destruction. In addition, consumers should have the opportunity forreasonable, appropriate access to information about them that a company holds, and be able tocorrect or amend that information when necessary.Consumer retail on the Internet is already showing signs of rapid growth. As retailers address thechallenges outlined above and as consumers become more familiar and comfortable with buyinggoods online, the Internet could emerge as an important retail channel.40