Statement by SEC Chairman Arthur Levitt. Re: SEC's Request for Proposals for an automated Internet search system. Date: April 5, 2000. Source: Securities and Exchange Commission.

Chairman Arthur Levitt Issues Statement on Internet Search System

Washington, DC, April 5, 2000 -- Securities and Exchange Commission Chairman Arthur Levitt today issued the following statement on the SEC's Request for Proposal for an automated Internet search system:

In recent weeks, there has been considerable interest in the Commission's Internet enforcement program and our Request for Proposals for an automated Internet search system. Some are concerned that the Commission intends to monitor private Internet communications. These concerns appear to be based on a misunderstanding about what we seek to do. I want to make clear that the SEC has never had any intention of intercepting or monitoring private transmissions, including conversations taking place in chat rooms or on e-mail, in the pursuit of Internet fraud.

Commission staff, as permitted by law, access only electronic materials that are "readily accessible to the general public," both when conducting investigations and when engaging in other Commission business. The RFP simply seeks the ability to automate and customize these same searches of public sites that are already accessible to the general public through commercial search engines. This is no different, in both manner and scope, than finding a newspaper article with the aid of a tool that helps you do so more quickly and exactly.

The RFP was carefully drafted to require that the contractor chosen respect the privacy of non-public communications conducted over the Internet; it expressly states that the "[c]ontractor shall access data posted or disseminated on publicly accessible web sites and news and message servers." In addition, the RFP bars the contractor from using a system that would access private materials on the Internet such as "private email correspondence, transactions or communications."

Historically, the Commission has taken great pains to respect and protect the privacy of all persons with whom it deals. We work hard to ensure compliance with constitutional and statutory privacy protections, including the Privacy Act and the Electronic Communications Privacy Act. We take these obligations seriously when we monitor the Internet just as we do in any other context.

During the past few years, the Commission has taken significant steps to protect investors from securities fraud on the Internet. I regard these efforts as vital to ensuring the fairness and integrity of our markets. We will continue to undertake these efforts mindful and respectful of fundamental privacy rights.