DISS 790 – Information Policy: Assignment C

Information Haves vs. Have-Nots

Information Policy in the Workplace

Privacy: The Information Policy Brushfire of the Early 21st Century

 

by

 

Ronald G. Wolak

wolakron@nova.edu

 

 

 

 

 

 

 

 

 

 

 

 

 

A paper submitted in fulfillment of the requirements

for DISS 790 – Information Policy: Assignment C

 

 

 

 

 

 

School of Computer and Information Sciences

Nova Southeastern University

 

November 2000

 


An Abstract of a Paper Submitted to Nova Southeastern University in Fulfillment of the Requirements for DISS 790 – Information Policy: Assignment C

 

DISS 790 – Information Policy: Assignment C

Information Haves vs. Have-Nots

Information Policy in the Workplace

Privacy: The Information Policy Brushfire of the Early 21st Century

 

by

Ronald G. Wolak

 

November 2000

 

 

The paper that follows was submitted to satisfy the requirements of DISS 790 – Information Policy: Assignment C. In the following pages, the paper completed the following assigned tasks:

1.     Visit the anonymizer.com website. Read about their services. Surf the web, and view discussions about the services and report your results on these two activities

  1. Read the first-in-the-nation anti-spam law, passed in Nevada in 1997 (located in an appendix in the Overly text). What are the possible drawbacks to a similar federal anti-spam law?
  2. Draft a policy on employee e-mail use for your organization. If your organization already has a policy, how would you improve the existing policy? Be sure to include the essential elements regarding what privacy is afforded to employees, etc.
  3. What are the pros and cons of having an explicit employee Internet policy?
  4. Based on a recent study, the U.S. Federal Trade Commission is calling for the enactment of a series of federal laws related to Internet privacy. Do you agree or disagree with the FTC's recommendations? What are the possible ramifications of such new laws? Should the private sector be given more time to establish effective self-regulation practices?
  5. Draft a privacy statement for your organization’s web site. If your organization already has such a statement, how would you modify the policy to improve it based on the principles of privacy that you have learned in class and in your readings? Be specific and provide sample language.
  6. Briefly, describe the points on which the U.S. and the EU agreed to resolve the long-standing data privacy rules dispute. Should the U.S. government adopt, in totality, the principles behind the European Commission Privacy Directive? Why or why not?
  7. What are the advantages of “universal service”; what are its drawbacks or implications?
  8. Is the Digital Divide a legitimate concern in the U.S. or merely an outgrowth of partisan politics? What role should the U.S. government play in bridging the so-called “digital divide”? How serious is the “digital divide”, internationally? Give examples.

 

Table of Contents

 

 

Abstract   ii

 

1.  Task 1    1

 

2.  Task 2    4

 

3.  Task 3    7

 

4.  Task 4    12

 

5.  Task 5    17

 

6.  Task 6    20

 

7.  Task 7    25

 

8.  Task 8    28

 

9.  Task 9    32

 

 

 

 


Task 1

Visit the anonymizer.com website. Read about their services. Surf the web, and view discussions about the services and report your results on these two activities

 

            Anonymizer.com is one of a number of anonymous proxy services that allow users to surf the Internet anonymously. The company’s mission is to ensure that online activity does not compromise an individual’s right to privacy (Anonymizer, 2000). In general, anonymous proxy services are classified into three types: Web-based, direct, and client (WebVeil, 2000). Web-based proxies, such as anonymizer.com, use server‑side programs to enable users to surf anonymously using a standard Web-browser. There is nothing to download, install, or configure. In contrast, direct and client proxy services require either custom browser configuration or the installation of client-side applications to mask a user’s surf activity.

            The anonymizer.com site offers free basic service that protects a user’s identity by hiding his/her IP address. The service also prevents visited Web sites from using cookies, Java, JavaScript, and other forms of information gathering to track a user’s Web activity. Premium paid services offered by the site include Safe Cookies, URL encryption, anonymous downloads, secure connections, anonymous e-mail, newsgroup access, Web publishing, secure tunneling, and dialup access.

            Anonymizer.com makes cookies “safe” by encrypting and repackaging them to prevent their use in tracking a user’s browsing habits. Other premium services, URL encryption and anonymous downloads, prevent ISPs from logging the sites a user visits by encrypting all browser and file download requests. Anonymizer.com also provides secure shell (SHH) access to their servers. This secure tunneling technology provides users with secure e-mail, newsgroup access, and Web publishing.  Anonymizer.com encrypts all Internet activity between a user’s computer and its servers. This prevents firewall monitoring programs, ISPs, and Internet routing devices from monitoring a user’s activities.

            Anonymizer.com also offers a product called Window Washer, which is available for download from the Web site (Harrison, 2000). The program removes all traces of Internet activity from a user’s computer. Window Washer runs silently in the background removing activity information from the user’s browser, office applications, and operating system. In addition, a bleaching feature allows users to destroy files. This renders them unrecoverable by unerase and undelete software utilities.

            The basic service offered by Anonymizer.com allows users to sample the service from an URL address box located on their Web site. The service is limited and meant to entice users to sign up for a premium account. Drawbacks include a built-in ten second delay before accessing an Internet address, and a one third page banner advertisement that occupies the top of every Web page. In addition, URL encryption and safe cookies are disabled.

            Internet discussion groups speak highly of Anonymizer.com (eGroups, 2000). In fact, one group discussed the effectiveness of the product during the conflict in Kosovo. Kosovars and Serbs used the service, along with a Kosovo e-mail system, to report conditions and human rights violations from within the war zone. In addition, discussion groups in China and the Middle East use Anonymizer.com to post information censored by their governments (Melugin, 2000).

            In conclusion, a 30-day free trial of Anonymizer.com’s premium services would have been a more effective way of sampling the company’s privacy applications. The free basic service offered on the company’s Web site did not convince the author to subscribe and spend money.

References

 

Anonymizer (2000). Anonymizer.com: Privacy is Your Right. Anonymizer.com. http://www.anonymizer.com/corporate/index.shtml. Accessed November 8, 2000.

 

eGroups. (2000). Anonymizer.com. http://www.egroups.com/search?query=anonymizer.com. Updated November 12, 2000.  Accessed November 12, 2000.

 

Harrison, A. (2000, August 7). Carnivore: How much bite behind the bark? Computerworld, 34, 73.

 

Melugin, J. (2000, September). Consumers can find privacy on-line. Consumers' Research Magazine, 83, 20-21.

 

WebVeil (2000). Anonymous Proxy Services. WebVeil.com. http://webveil.com/matrix.html. Updated November 7, 2000.  Accessed November 12, 2000.

 

 


Task 2

Read the first-in-the-nation anti-spam law, passed in Nevada in 1997 (located in an appendix in the Overly text). What are the possible drawbacks to a similar federal anti-spam law?

 

            The quantity of spam e-mail received by users during the past year has grown at an astounding rate (Halcon, 2000). Experts from Brightmail, Inc. reported that the company is intercepting an average of 4,900 junk e-mail attacks per day. This is 400 percent higher than last year. In addition, a survey conducted last year by the Gartner Group reported that 90 percent of e-mail users receive spam at least once a week and 50 percent receive it more than six times a week (Abrams, 2000). There are five basic solutions to the spam problem: social pressure, economic disincentives, technical means, legal action under existing laws, and new legislation.

            New legislation is probable the most risky and uncertain of the five solutions because of unknown side effects. For example, in 1997 the Senate passed an anti-spam rider on an unrelated bill covering telephone “slamming” (Catlett, 1998). Internet experts widely agreed the rider would be worse than the status quo because it would legitimize spam. In addition, free-speech advocates warn against government restrictions on electronic messaging. They contend that under existing laws spam recipients can sue unscrupulous e-mailers. The challenge they say is to balance the privacy of users with the free speech rights of marketers.

 Despite the risks, state governments are passing anti-spam laws. Nevada chose to limit spam with new legislation and became the first state to enact an anti-spam law in 1997. Washington and California subsequently passed similar anti-spam laws. However, a county court judge in Washington declared the new Washington law to be unconstitutional under the Interstate Commerce Clause (Marcotte, 2000). The judge found that for businesses not to violate the law they would have to determine if any of the e-mail recipients did not live in the state of Washington. In the judge’s opinion, this would be unduly restrictive and burdensome and would hurt consumers and legitimate businesses. In support, critics of state-level anti-spam legislation contend that federal government regulation would be best since the Internet is such a broad area. However, by that argument, would not international anti-spam regulation be even better?

At the federal level, the “Unsolicited Commercial Electronic Mail Choice Act of 1997” did not attempt to ban spam but rather to force such mail to be identified in an easily filtered manner (Cranor & LaMacchia, 1998). Recently, the House of Representatives passed e-mail legislation by an almost unanimous vote (Bray, 2000). The bill requires anyone sending unsolicited commercial e-mail to include a valid return address. This would allow recipients to reply and have their names removed from future mailings. In addition, the Federal Trade Commission is able to bring legal action against spam senders violating the provisions of the legislation. Internet Service Providers (ISPs) are also able to sue spammers in federal court. Penalties, if convicted, would range from $500 to $50,000 per illegal message.

            Have the state laws been effective? In 1999, Brightmail analyzed ten million pieces of spam and found virtually no compliance with existing state laws (Brown, 2000). This raises questions whether a federal law modeled after the state laws would perform any better. Many now believe that the future of spam suppression lies with technology that allows ISPs to identify and remove spam quickly before it reaches a user’s inbox.

In conclusion, the drawbacks of both federal and state anti-spam legislation include side effects such as legitimizing spam and limiting the rights of marketers. In addition, anti-spam legislation could limit legitimate anonymous communications. The characteristics of e-mail that make it so appealing to mass marketers also make it an effective tool for academic communities, political organizers, social networks, and individuals. Should anti-spam legislation be state, federal, or international? The question becomes mute when users and ISPs employ advanced filtering technology to dispose of unwanted e-mail.

References

 

Abrams, J. (2000, July 19). Bill would shackle junk e-mail. Florida Today, pp. 4.

 

Bray, H. (2000, August 24). Choosing spam over censorship. Boston Globe, pp. C1.

 

Brown, D. (2000). Anti-Spam Forces Gaining Ground. Inter@ctive Week. http://www.zdnet.com/filters/printerfriendly/0,6061,2569928-2,00.html. Updated May 16, 2000.  Accessed November 17, 2000.

 

Catlett, J. (1998, November 1). What can be done about junk e-mail? USA Today Magazine, 127n.

 

Cranor, F., & LaMacchia, B. (1998). Spam! Communications of the ACM, 41(8).

 

Halcon, C. (2000). Spam Attacks At All-Time High. Brightmail. http:// www.brightmail.com/company/media/press/pr26.shtml. Updated October 27, 2000.  Accessed November 17, 2000.

 

Marcotte, J. (2000). Judge Cans Washington's Spam Law. Government Technology News. http://www.govtech.net/news.phtml?docid=2000.03.17-1025000000000022. Updated May 17, 2000.  Accessed November 8, 2000.

 

 


Task 3

Draft a policy on employee e-mail use for your organization. If your organization already has a policy, how would you improve the existing policy? Be sure to include the essential elements regarding what privacy is afforded to employees, etc.

 

            American Axle and Manufacturing (AAM) is a tier one supplier of automotive driveline systems (AAM, 2000). Headquartered in Detroit, Michigan, AAM has five North American manufacturing facilities. The company's near-term plans include expansion in Europe, Asia, and South America. AAM employs more than 8,500 associates.

            AAM's information technology infrastructure includes a state-of-the-art electronic messaging system that facilitates both internal and external communication. Employee misuse of the company’s e-mail system could have serious consequences (i.e. employee harassment and claims of a hostile environment, disclosure of trade secrets, copyright and criminal penalties, and a lessening of the company’s position in litigation) (Gall, 2000). In light of the above, the author presents the following draft of an e-mail use policy for AAM. Key points covered in the policy are:

Since promulgation and employee awareness of the e-mail policy are two of the most important considerations, all e-mail users will be required to sign the acknowledgment given below (Grillo & Linderman, 1998). In addition, before logging into the system, a short message box will remind users of the policy and require them to once again agree to its conditions. The following is a sample e-mail policy for use by AAM:

American Axle & Manufacturing

 Corporate E-mail Use Policy (DRAFT)

 

Statement of Purpose

 

      This policy describes American Axle & Manufacturing’s (AAM’s) guidelines with regard to access to and disclosure of electronic mail (e-mail) messages sent to or received by AAM employees using of the AAM e-mail system. The policy applies to all AAM employees. AAM will execute the policies given below, but reserves the right to modify them at any time in response to changing conditions. This policy is applicable to both internal and external (Internet) e-mail.

      AAM maintains the e-mail system to facilitate the transaction of company business. The e-mail system hardware is company property, and all messages composed, sent, or received on the system are, and remain, the property of the company. Questions about this policy should be brought to the attention of your supervisor or your local human resources department.

 

Permissible Use

 

1.         The use of the e-mail system is reserved solely for the conduct of company business. It may not be used to conduct personal business.

 

2.         No e-mail may be sent which attempts to hide the identity of the sender, or represent the sender as someone else or from another company.

 

3.         E-mail should not be used in a manner likely to cause network congestion or restrict the ability of other users to access and use the system.

 

4.         E-mail messages sent by an employee to one or more individuals outside the company are statements identifiable and attributable to the company. Although some users include personal disclaimers in messages, there is still a connection to the company. All e-mail sent by employees must comply with this and other company policies and may not disclose confidential or proprietary company information.

 

5.         The use of Web-based e-mail services (e.g. Hotmail.com) is strictly forbidden due to the risk of viruses in unscreened downloads and the inability of the company to monitor such correspondence.

 

6.         The e-mail system may not be used in a way that is insulting, disruptive, offensive, or harmful to the morale of other persons. Examples of this type of prohibited e-mail content include sexually explicit jokes or cartoons, ethnic or racial slurs, or any other message that can be construed to be harassment or disparagement of others based on their sex, race, religion, sexual orientation, age, national origin, or political beliefs.

 

7.         E-mail system users are prohibited from the unauthorized use of the password or encryption key of another employee to access that employee’s e-mail messages.

 

8.         The e-mail system shall not be used to upload or download copyrighted materials, proprietary financial information, trade secrets, or similar material without approval.

 

9.         The e-mail system may not be used to solicit for religious or political causes, commercial ventures, outside organizations, or other personal correspondence.

 

Monitoring and Enforcement

 

1.     The company has and will exercise the right to audit, intercept, access, review, and disclose all information on the company’s e-mail systems at any time. Such access may occur during or after working hours, with or without employee notice. The contents of e‑mail, properly obtained for legitimate business purposes, may be disclosed within the company without the permission of the employee.

 

2.     Messages on the e-mail system are not confidential. The use of passwords for security does not guarantee confidentiality. Even deleted messages may be retrieved and read. All passwords or pass codes must be disclosed to the company. No password or pass code may be used that is unknown to the company.

 

3.     Any employee who is aware of violations of this policy shall notify the e-mail system administrator at emailadmin@aam.com.

 

4.     Any employee found to abuse the privilege of using AAM’s e-mail system and violating this policy shall be subject to discipline, up to and including discharge.

 

Acknowledgement

 

As an employee of American Axle & Manufacturing, Inc., I,  _____________, recognize and understand that the company’s e-mail systems shall be used only for conducting company business. I understand that the use of this equipment for private purposes is strictly prohibited and agree not to use a password that has not been disclosed to company. Further, I agree not to access a file or retrieve any stored communication other than where authorized or an authorized company representative has given prior permission.

I also understand that the company has and will exercise the right to audit, intercept, access, review, and disclose all information on the company’s e-mail systems at any time. Such access may occur during or after working hours, with or without employee notice. In addition, I am aware that passwords do not restrict the company’s right to access all information contained in company e-mail systems. I am also aware that violations of this policy may subject me to disciplinary action, up to and including discharge from company employment.

I have read and understand the company’s e-mail use policy located in Information Technology Policies Manual. I have read and understand this notice.

 

       __________________________________                   __________________

       Employee Signature                                 Date

 

 

Improvements to the Existing AAM E-mail Use Policy

            The AAM Electronic Mail Policy INF-12-007 (1998) is an excellent example of a company e-mail policy. The five-page policy document covers all topics included in the “Permissible Use” and the “Monitoring and Enforcement” sections above. However, the policy lacks of a signed acknowledgement statement. This oversight will be brought to the attention of the AAM CIO.

Conclusion

            In conclusion, a well-written e-mail policy is the first step in ensuring the proper and effective use of a company’s electronic messaging infrastructure. Promulgation and employee awareness of the policy are also important.

References

 

AAM. (2000). Driving Performance. AAM.com. http://www.aam.com/about/index.html. Updated September 29, 2000.  Accessed November 19, 2000.

 

Curry, F. (1998). AAM - Electronic Mail Policy (INF-12-007). Detroit: American Axle & Manufacturing.

 

Gall, B. (2000). Company E-mail and Internet Policies. Gigalaw.com. http://www.gigalaw.com/articles/gall-2000-01-p1.html. Updated January, 2000.  Accessed November 19, 2000.

 

Grillo, J., & Linderman, J. (1998). Crafting a Policy on Employee E-mail. http://www.beyondcomputingmag.com/1998/03-98/ethics.html. Updated April, 1998.  Accessed November 5, 2000.

 

 


Task 4

What are the pros and cons of having an explicit employee Internet policy?

 

            A report by the Aberdeen Group found that corporations without employee Internet policies expose themselves to significant legal liabilities, bandwidth abuse, and employee productivity gaps (Butler, 2000). In addition, reports from the FBI and independent researchers support this conclusion and identify employees as the single highest risk and the most common cause of data loss, network abuse, and litigation.

According to the Gartner Group, 75 percent of companies with more than 1,000 employees will have Internet usage policies by 2001 (Yasin, 1999). While explicit Internet policies provide a number of benefits to companies and their employees, they also have a number of disadvantages. The following sections explore some of the pros and cons of employee Internet policies.

Pros

Explicit Internet policies provide a company with three major benefits. Those benefits include increased employee productivity, decreased demand on network bandwidth and resources, reduced legal liability, and increased protection of trade secrets

Increased Employee Productivity

            Recent studies have found that the average employee at work uses the Internet for personal use at least three hours per week (Overly, 1999). In addition to this direct loss of productivity, increased network and application response times indirectly affect other employees. Employee Internet policies reduce the personal use of the Internet and result in increased employee productivity. Companies that have implemented employee Internet policies have also found that employees respond better when they know where they stand and what the company expects from them (Gaudin, 1999).

Decreased Demand on Network Bandwidth and Resources

Non-business usage of the Internet by employees significantly increases a company’s IT costs (Butler, 2000). In addition to the cost of wasted time caused by slow network response or unreliable connections, excessive misuse results in increased spending to provide unnecessary leased lines, routers, and disk storage. For example, one company lost 40 percent of its bandwidth when a handful of employees downloaded an Internet screen saver that required constant updates from the Internet (Overly, 1999). Companies that implement explicit Internet policies along with acceptable use monitoring software are able to decrease significantly the demand on network bandwidth and resources.

Reduced Legal Liability

            The implementation of an explicit employee Internet policy also reduces a company’s legal liability from illegal employee behavior (e.g. harassment and sexual discrimination) (Gaudin, 1999). Although a good percentage of companies do not have policies, court rulings indicate that if a company wants to avoid punitive damages, it must create Internet policies that keep employees within the law. In addition, companies must ensure that employees understand those policies.

For example, two recent court cases (i.e. Kolstad versus The American Dental Association and EEOC versus Wal-Mart Stores) set precedents in this area. In both cases, the companies were found liable for their employees’ inappropriate behavior on the job.

Increased Protection of Trade Secrets

            A properly drafted employee Internet policy should remind employees that it is their duty to protect company trade secrets (Overly, 1999). The theft of trade secrets is a growing problem in the United States. In 1992, U.S. companies estimated their losses from the theft of trade secrets to be $1.8 billion. For example, unpublished teaching materials of the Church of Scientology lost their status as trade secrets when they became available on the Internet.

Cons

            In addition to their benefits, Internet usage policies present companies and employees with a few disadvantages. These include increased company responsibility, decreased employee morale, loss of employee privacy, and loss of productivity.

Increased Company Responsibility

            Companies with Internet policies that outline the companies’ ability to access and monitor employee Internet activity may have an increased duty to protect employees from material that creates a hostile environment (Overly, 1999). In fact, companies with greater control over employee Internet activity are more likely to be held liable if they fail to detect and remove offensive content. When companies with such policies detect inappropriate content, they should act quickly to remove it.

Decreased Employee Morale

            When a company plays Big Brother and implements and enforces an extreme employee Internet policy, the impact on employee morale may be negative (Yasin, 1999). In fact, Lance Cottrell, CEO of Anonymizer.com, commented that a number of businesses are overreacting to the personal use of the Internet by their employees (Murphy, 2000). He reasons that workers need to take breaks, and they will take them either at the water cooler or at their desks.

Loss of Employee Privacy

            Another key reason that companies institute Internet policies is to make it clear to employees that the equipment, networks, systems, and data they use and create are company property, and that employees have no privacy (Overly, 1999). In order for an employee to win a claim for invasion of privacy, the employee must establish the expectation of privacy in the workplace. Employee Internet policies decrease the validity of such claims.

Loss of Productivity

            An overzealous Internet policy can be just as harmful as a nonexistent one (Yasin, 1999). For example, one TV station’s stringent blocking of Internet sites hampered the company’s art department from doing its job. The department was unable to download graphic art from a drug-enforcement agency site because the Internet site filtering software the TV station was using identified the agency as a “drug” site.

Conclusion

            In conclusion, although explicit Internet policies provide a number of benefits to companies and employees, they also have a number of disadvantages. A few of the benefits are increased employee productivity, decreased demand on network bandwidth and resources, reduced legal liability, and increased protection of trade secrets. Disadvantages include increased company responsibility, decreased employee morale, loss of employee privacy, and loss of productivity.

References

 

Butler. (2000). Internet Usage Monitoring and Reporting. Butler.org. http://www.butler.org/bhis/policy/internet.html. Updated August 9, 2000.  Accessed November 19, 2000.

 

Gaudin, S. (1999). The Perils of Privacy. Network World. http://www.nwfusion.com/power99/power99-privacy.html. Updated December 27, 1999.  Accessed November 5, 2000.

 

Murphy, C. (2000). More Companies Keep Eye on Employee's Messages. InformationWeek. http://www.informationweek.com/shared/printArticle?article=infoweek/786/monitor.htm&pub=iwk. Updated May 15, 2000.  Accessed November 19, 2000.

 

Overly, M. (1999). E-policy: How to develop computer, e-mail, and Internet guidelines to protect your company and its assets. New York: American Management Association.

 

Yasin, R. (1999). Web Slackers Put On Notice. InternetWeek. http://www.internetwk.com/lead/lead101599.htm. Updated October 15, 1999.  Accessed November 21, 2000.

 

 

 

 

 


Task 5

Based on a recent study, the U.S. Federal Trade Commission is calling for the enactment of a series of federal laws related to Internet privacy. Do you agree or disagree with the FTC's recommendations? What are the possible ramifications of such new laws? Should the private sector be given more time to establish effective self-regulation practices?

 

The term “privacy” is sometimes defined as the right to be left alone (Wang, Lee, & Wang, 1998). In the context of the electronic marketplace, privacy often refers to personal information. The usual interpretation of the invasion of privacy is the unauthorized collection, disclosure, or use of personal information obtained during e‑commerce transactions. Earlier this year, the Federal Trade Commission (FTC) issued a report calling on Congress to pass broad legislation covering online privacy (Perine, 2000). In the report, the majority of the five-member commission found that industry self-regulation of online privacy was lacking.

Appearing before a Senate committee, FTC Chairman Robert Pitofsky applauded the progress of industry self-regulation but said it fell short of the effectiveness of programs that have the rule of law to back them up. The report called for federal regulation of the way Internet companies collect and use information about their customers. This marked an important shift in FTC policy, which had previously agreed with Internet Industry arguments that self-regulation was the most effective way to protect public privacy rights.

            The FTC’s recommendations are a positive step toward the protection of Internet privacy. Industry self-regulation has continually demonstrated itself to be inadequate (Clarke, 1999). During 1995-98, the FTC examined the behavior of corporate Web sites and found that effective self-regulatory systems did not emerge. This is in spite of the fact that consumers identify the loss of personal privacy as the most crucial e-commerce issue. The information economy is dependent on trust, and industry self-regulation efforts have fallen short in this area. The industry has had ample time to address the problem, and now federal law should bolster self-regulation efforts.

Government, businesses, and individuals each play a role in protecting Internet privacy (Wang et al., 1998). Privacy protection must be a joint effort of the three groups. The government’s role is to promote strong privacy laws for the private and public sectors. Independent privacy commissions should oversee the implementation of these laws, encourage industry self-regulation, and educate the public on privacy issues. The role of business is to promote self-regulation that fosters fair information practices. Finally, individuals are able to protect their privacy by implementing privacy enhancing technologies such as those developed by Anonymizer.com and Zeroknowledge.com (Melugin, 2000).

            In the absence of a unifying framework of federal privacy statutes, public confidence in matters of online privacy will continue to decrease (Clarke, 1999). One ramification would be a slowdown in the growth of e-commerce. Businesses and governments in most advanced countries attribute the slow adoption of e-commerce to a severe lack of consumer trust. Lack of consumer confidence is bad for business.

            Furthermore, self-regulation is unable to enforce privacy regulations without a widely recognized accreditation system (Wang et al., 1998). This hinders a consumer’s ability to choose a creditable Internet merchant and results in a chaotic environment similar to the Internet market of today. It is also important that privacy enhancing technology, industry self-regulation, and legislation be coordinated to provide a privacy framework that serves individual privacy concerns and business e‑commerce initiatives. While self-regulation is not enough, it is also important to ensure that any legislation enacted does not limit consumer choice or provide a disincentive for the development of future technology (Melugin, 2000).

            In conclusion, the Internet presents a severe threat to personal privacy. The U.S. must join the rest of the world in recognizing the role that legislation plays in establishing a privacy-protective framework for the Internet economy.

References

 

Clarke, R. (1999). Consumer privacy concerns about Internet Marketing. Communications of the ACM, 41(3), 63-70.

 

Melugin, J. (2000, September). Consumers can find privacy on-line. Consumers' Research Magazine, 83, 20-21.

 

Perine, K. (2000). FTC Backs Its Online Privacy Report. The Industry Standard. http://www.thestandard.com/article/display/0,1151,15439,00.html. Updated May 25, 2000.  Accessed November 5, 2000.

 

Wang, H., Lee, M., & Wang, C. (1998). Consumer privacy concerns about Internet Marketing. Communications of the ACM, 41(3), 63-70.

 


Task 6

Draft a privacy statement for your organization’s web site. If your organization already has such a statement, how would you modify the policy to improve it based on the principles of privacy that you have learned in class and in your readings? Be specific and provide sample language.

 

            In June 1998, the Federal Trade Commission (FTC) reported the details of a survey of 1400 Web sites (Kane & McEahern, 2000). The survey found that the vast majority of the sites, almost 85 percent, collected personal information from consumers. Only 14 percent of the random sample of sites provided a notice of their information practices. In addition, less than two percent provided a comprehensive privacy policy. A more recent study conducted by PC Data Online in February 2000 found that 630 sites among the Top 1000 posted a comprehensive privacy policy. This is an improvement of 30 times in less than two years.

            Web site privacy policies explain the responsibilities of the organization that is collecting personal information and the rights of the person who provided the information (EPIC, 1997). Typically, the organization will explain why the information is collected, how it is used, and what steps will be taken to keep the information private. In addition, individuals are able to obtain their data and make any necessary corrections. Strong privacy practices give Web site visitors the assurance that personal information will not be misused.  It also encourages the growth of e-commerce. The following are five important characteristics of a well-written Web site privacy statement (Rotenberg, 1999):

  1. The privacy policy should be available and easy to find – preferably on the home page linked to the word “privacy.”
  2. Privacy policies should spell out how and when personal information is collected.
  3. Site visitors should have access to view and edit their personal data.
  4. Sites should notify visitors that cookies containing information about the user placed on the user’s system.
  5. Web sites should support anonymous access.

In addition to the above, global companies like American Axle & Manufacturing (AAM) must be sensitive to foreign privacy policies such as the European Union’s (EU’s) Privacy Directive. Compliance with the recent “safe harbor” agreement between the U.S. and the EU is in AAM’s best interest (Oram, 2000). In response, AAM should register its Web site and privacy policy with U.S. Department of Commerce and one of the three U.S. organizations established to audit performance independently: TRUSTe, BBBOnLine, or Secure Assure.

The following is a sample Internet privacy statement for use by AAM.com. Visitors would view the statement by clicking the “Privacy” link located at the bottom of the home page.

AAM.com Privacy Statement

 

      American Axle & Manufacturing, Inc. (AAM) is sensitive to privacy issues on the Internet. It is important that visitors to AAM.com know how AAM treats the information we collect about them on the Internet.

      In general, visitors to AAM.com are anonymous and do not tell us their identity or any other information. AAM’s Web servers only collect domain names and not the e‑mail addresses of visitors. AAM aggregates this information and uses it to measure the number of visits, pages viewed, and average time spent on the site. Further, AAM uses the information to measure the use of the site and to improve site content.

      However, it is necessary at times to obtain personal information, such as a visitor’s name and address. When this occurs, the visitor is informed about how the information will be used. Normally, the information is requested to respond to a visitor’s inquiry, process an order, or to allow access to specific account information. Visitor e‑mail addresses are rarely made available to other organizations.  When they are, visitors are offered the opportunity to limit distribution. In addition, visitors have access to view and edit any of their personal data collected on the site.

      Information provided by a visitor to one of AAM’s business units online is used to provide custom information about AAM’s business support offerings. In addition, cookie technology may be employed to provide visitors with tailored information. Cookie’s are deposited on visitors’ hard drives and allow AAM to recognize visitors when they return. Visitors that do not wish to receive cookies may set their browsers to notify them before receipt.

      At times, AAM.com conducts online surveys to better understand the business needs of visitors. Whenever surveys are taken, AAM will let visitors know how the info will be used.

      AAM.com contains links to other sites. While AAM tries to link only to sites that share our high standards for privacy, AAM is not responsible for the content or privacy practices of the other sites.

AAM.com is a S.A.F.E. (Secure Assure Faith Entrusted) Web site. The Secure Assure Organization regularly audits this site’s compliance with the guidelines of the “safe harbor” agreement between the United States and the European Union.

 

Improvements to AAM.com’s Existing Privacy Statement

The following privacy statement is included among a variety of topics on the site’s Legal Notices page (AAM, 2000):

“American Axle & Manufacturing, Inc., reserves the right to collect basic, generic information about visitors to this website, including: the site visited previous to this website; the time, date, and length of visitor's stay; pages viewed by visitor; and the visitor's internet service provider. This information is collected only for the purpose of helping us evaluate this website for activity and possible improvements and will not be used for any other purpose or otherwise disclosed by us. Any information provided by visitors through e-mail will be for our own use, or for the purpose specified in, or by the nature of, such communication, and may be shared with those of our employees, advisors, consultants, or contractors on such basis as we, in our sole discretion, determine appropriate, giving due consideration to the nature of such information. Any information which contains personally identifiable information such as your name, address, e-mail address, phone number, and the like will be kept confidential, and we shall respect any request to keep such information confidential. We shall treat any visitor questions or comments about this website, or any unsolicited correspondence received through e-mail or otherwise through this website, as non-confidential, and visitors providing such questions, comments, or unsolicited correspondence are advised to keep this in mind when transmitting such questions, comments, or unsolicited correspondence to us. American Axle & Manufacturing, Inc., reserves the right to amend this Privacy Policy at any time and without notice, except that any such revised Privacy Policy shall only apply to data collected after its effective date, and any revisions shall be posted at least ten days prior to the effective date.”

 

The following is an improved version AAM.com’s privacy statement. Improvements are denoted by bracketed bold and italicized type.

“American Axle & Manufacturing, Inc., [is sensitive to privacy issues on the Internet. It] reserves the right to collect basic, generic information about visitors to this website [Web site], including: the site visited previous to this website; the time, date, and length of visitor's stay; pages viewed by visitor; and the visitor's internet service provider. This information is collected only for the purpose of helping us evaluate this website [Web site]for activity and possible improvements and will not be used for any other purpose or [not] otherwise disclosed by us. [Cookie technology is employed to provide visitors with tailored information. Cookies are deposited on the visitors’ hard drives and allow this Web site to recognize visitors when they return. Visitors that do not wish to receive cookies may set their browsers to notify them before receipt.] Any information provided by visitors through e-mail will be for our own use, or for the purpose specified in, or by the nature of, such communication, and may be shared with those of our employees, advisors, consultants, or contractors on such basis as we, in our sole discretion, determine appropriate, giving due consideration to the nature of such information. Any information which contains personally identifiable information such as your name, address, e-mail address, phone number, and the like will be kept confidential, and we shall respect any request to keep such information confidential. [In addition, visitors have access to view and edit any of their personal data collected by the site.] We shall treat any visitor questions or comments about this website, or any unsolicited correspondence received through e-mail or otherwise through this website, as non-confidential, and visitors providing such questions, comments, or unsolicited correspondence are advised to keep this in mind when transmitting such questions, comments, or unsolicited correspondence to us. American Axle & Manufacturing, Inc., reserves the right to amend this Privacy Policy at any time and without notice, except that any such revised Privacy Policy shall only apply to data collected after its effective date, and any revisions shall be posted at least ten days prior to the effective date. [AAM.com is a S.A.F.E. (Secure Assure Faith Entrusted) Web site. The Secure Assure Organization regularly audits this site’s compliance with the guidelines of the “safe harbor” agreement between the United States and the European Union.]

 

After making the above changes to AAM’s existing privacy statement, the policy now covers five of the most important characteristics of a well-written Web site privacy statement (Rotenberg, 1999). In its original form, the policy omitted a statement of corporate sensitivity to privacy, the company’s use of cookie technology, and a provision to allow visitors to view and edit their personal data. In light of AAM’s position as a global company, a statement ensuring compliance with recent “safe harbo