WASHINGTON, D.C. -- Montana Senator Conrad Burns today introduced the Online Privacy Protection Act of 1999, which helps ensure the security of personal information on the Internet.

The bill institutes a system aimed at giving consumers control over personal information Web sites collect and how that information is used. The Online Privacy Protection Act would require commercial Web sites to notify visitors if any information is collected. In addition, visitors to commercial Web sites would be able to "opt out" of having their information collected.

"Consumers have the right to know who is collecting information about them and how that information is being used," Burns said. "Many people are terrified that using the Internet will put their credit card numbers or even Social Security numbers into the hands of people who do not mean well, and that's not entirely unjustified. This bill is a good first step to securing Internet users' personal information."

In addition to personal privacy concerns, Burns said that the bill was important for the future of electronic commerce. Over $50 billion in goods were sold over the Internet in 1998. Around Christmas alone, consumers spent $4 billion over the Internet, which is three times the amount spent during the 1997 holiday season.

Industry leaders have projected a rapid expansion of Internet commerce in the near future. John Chambers, CEO of Cisco Systems, has estimated that a quarter of all global commerce will be transacted over the Internet by 2010.

"The Internet holds great promise as an international marketplace, but consumers won't use it to its full potential unless they feel safe," Burns said. "The Internet could transform the way many Americans do business, which has ramifications far beyond Wall Street.

"Right now, there is a crisis in rural America, and many people feel they have to choose between giving up their rural heritage and supporting their families. If electronic commerce is allowed to expand, folks in states like Montana and Oregon will be able to make a good living without giving up their tight-knit communities."

Burns is chairman of the Senate Communications Subcommittee, which oversees many Internet and electronic commerce issues.

Senator Ron Wyden (D-Ore.), also a member of the Senate Communications Subcommittee, is cosponsoring the legislation.

Bill Summary -- "Online Privacy Act of 1999"

Privacy Policy Disclosure

• requires clear and conspicuous explanation of how they use the consumer's personal information

Opt-out

• requires clear and conspicuous opportunity for consumers to "opt-out" of having their information collected and disseminated

Termination of Service

• absent a monopoly situation, allows Web site operators to terminate service to an individual who decides to "opt-out"

Security

• requires Web site operator to establish and maintain reasonable procedures to protect the confidentiality, security and integrity of the personal information it collects or maintains

Access

• allows consumers to receive copies of information sold or shared with other entities

Self-regulatory Incentives

• allows companies to be deemed in compliance with the act (safe harbor) if they are follow industry guidelines that have been approved by the FTC as consistent with this Act

Enforcement

• violations subject to (financial) penalties under the Federal Trade Commission Act

Civil Actions

• allows State Attorneys General to enjoin, force compliance, or seek financial restitution if state residents threatened/harmed by violations

Federal Preemption

• provides uniform privacy law to counter the threat of a hodgepodge of state privacy laws