WASHINGTON-Every time a paging or cellular phone signal is sent over the airwaves what happens with the transactional information-the subscriber’s name, address, billing information and eventual usage patterns-collected by the carrier?
Truth is, the customer typically doesn’t know. One thing is for sure, companies are willing to pay for valuable marketing data contained in those electronic records.
But should that information be for sale without a subscriber’s knowledge or consent?
The Clinton administration is worried that as more and more people conduct business and seek entertainment on the information superhighway-and as telecommunications and information service providers battle for those customers-personal privacy could be jeopardized.
In a new report, the National Telecommunications and Information Administration recommends industry self-regulation. Under this scenario, telecommunications and information service providers would seek customers consent before using their personal data for purposes other than those related to the service to which the customer is subscribing.
“At a minimum, it is imperative that long-distance and local telephone companies, direct broadcast satellite, cellular phone, paging and Internet service providers fully disclose to consumers their policies regarding personal information if we are to realize the full potential of the Information Age,” said Larry Irving, head of NTIA.
NTIA, a unit of the embattled Commerce Department, advises the president on telecommunications policy and manages federal government spectrum.
The report, “Privacy and the National Information Infrastructure: Safeguarding Telecommunications Related Personal Information,” was released at a White House ceremony recently in conjunction with National Consumers Week.
The white paper warned that the commercial viability of the NII could be threatened if people are reluctant to use advanced communications networks because of privacy concerns.
While the Electronic Communications Privacy Act of 1986 prohibits divulging the content of wireless and wireline communications, laws and regulations governing telecommunications-related personal information vary from jurisdiction to jurisdiction and from service to service.
Calling records, in fact, can reveal a lot about a person, including who that person’s friends and business associates are, how he or she organizes the day, and what their sleeping patterns are.
“The reality is that if companies are not more forthcoming with their customers, consumers will begin to demand legislative and regulatory solutions to guarantee protection of their personal information,” said Irving.
However, he said there are signs firms will comply since privacy is becoming every bit as much a selling point as price, service and quality.
“NTIA believes that establishing minimum privacy protections across the communications industry would ensure that consumers are provided with a reasonable level of privacy protection,” stated the report. “Uniformly applied, a common `base’ standard could also prevent some industries from gaining an unfair competitive advantage.”
