Opening Statement by Rep. Tom Bliley (R-VA). Re: House Telecom Subcommittee hearing on online privacy. Date: July 13, 1999. Source: House Commerce Committee.

Protection of personal privacy is one of the most talked about issues facing electronic commerce. All Americans have legitimate concerns about how the personal information they provide to websites is used by the operator of that website.

As I have stated many times in the past, I believe that ensuring the safety, security and privacy of online consumers is key to consumer use and acceptance of the Internet. Without these concerns being met, I believe that consumers loose confidence in electronic commerce.

This Committee has been active on the issue of online privacy since the 105th Congress. Online privacy is an issue that I hear about many times from my constituents and also from the many people I speak to in industry.

At the privacy hearing that this subcommittee held last year, industry witnesses laid out their plans to protect the privacy of consumers. At the time, I supported this effort, rather than a Federal regulatory approach.

Electronic commerce changes so quickly, I am concerned that a government mandated privacy policy would stifle innovation. We would be imposing a static policy on a dynamic and constantly changing industry.

Since that hearing last year, I have been monitoring the progress industry has made in self-regulation. I think the progress to date has been very good. The recently completed Georgetown privacy study showed impressive results in the posting of privacy policies by commercial websites.

Despite these good results, now is not the time for industry to ease up. There is still much more work to be done. Bricks and mortar businesses that are moving online need to tailor their existing privacy policies to the online world. I know that Commissioner Swindle is especially interested in the needs of small businesses as they move online. Also, the true test of a privacy policy is the remedy to consumers if their privacy is violated. A privacy policy is worth little if a company can ignore consumers who seek redress.

Another area that deserves attention, and which I will be following closely, is the transfer of personally identifiable information to third parties. Consumers should be told when third parties may have access to their information and should have the right to refuse the transfer to others of such information.

I know, there are some legitimate business uses for the transfer of this information. Some consumers don't mind. For example, consumers may enjoy knowing about the benefits of getting a discount on a rental car when they purchase an airplane ticket online. But there are many consumers who would prefer not to have personal information about their online reservations or purchases shared with other parties. They should have the right to 'opt out' of this information sharing.

Before I close, I would like to make an announcement. Very shortly the Commerce Committee will be posting a privacy policy on the Committee website. We will be the first Committee in Congress to post a privacy policy so that visitors to the Committee website will know how the Committee uses information they provide during a visit to the Committee website.

I want to thank all of our witnesses today for testifying on this issue before the subcommittee today. And I would also like to thank Chairman Pitofsky for all of the work the FTC has done on this issue. The FTC has been closely following this issue and will be publicly releasing their recommendation on dealing with online privacy. I understand that the FTC will not be recommending legislation to regulate privacy at this time. I welcome this recommendation and I look forward to reviewing the full set of recommendations."