Privacy Stories from 1998

Administration Policy for Boosting E-Commerce Includes Crypto Restraints. (11/30/98) Bill Clinton and Al Gore jointly announced the administration's first annual report on electronic commerce at a ceremony held in the Old Executive Office Building in Washington DC on Monday, November 30.  The report, which describes the administration's agenda for promoting e-commerce, contains little new information. It does, however, include the incompatible directive of maintaining existing restraints on encryption.

Senate Approves ITFA. Summary of Contents. (10/9/98) The Senate approved S 442, the "Internet Tax Freedom Act," yesterday by a vote of 96 to 2. The bill establishes a three year moratorium on new discriminatory state and local taxes on the Internet and Internet access, and creates a commission to study the subject of Internet taxes.  The bill also includes the language of Sen. Bryan's Children's Online Privacy Protection Act. See, complete copy of S 442, as adopted.

House Passes Child Online Protection Act and Children's Online Privacy Protection Act. (10/8/98 7:00 AM EDT) The House passed the "Child Online Protection Act" late on Wednesday October 7 by a voice vote. The bill bans sending to minors over the web material that is harmful to minors. It is intended to replace the much more broadly worded Communications Decency Act, which was held unconstitutional by the Supreme Court last year. The House also passed S 2326, the "Child Online Privacy Protection Act," which requires that website operators and online services that operate websites directed to children obtain parental consent before collecting information from children under the age of thirteen.

Senate Committee Passes Children's Net Privacy Bill. (10/2/98) The Senate Commerce Committee passed an amended version of S 2326, the "Children's Online Privacy Protection Act," by a unanimous voice vote. The bill would ban operators of websites and online services that are directed to children from collecting information from children under thirteen without parental consent.

Senate Holds Hearing on Children's Online Privacy. (9/24/98) The Senate Communications Subcommittee held a hearing Wednesday on S 2326, the "Children's Online Privacy Protection Act of 1998."   The bill would require children's websites to obtain parental consent before collecting information from children under thirteen. See, S 2326 IS.

Gore Announces Privacy Initiatives. (8/1/98) Vice President Al Gore, Commerce Secretary William Daley, and FTC Chairman Robert Pitofsky held a joint press conference Friday morning to announce a series of initiatives to protect privacy rights in the electronic age. Gore advocated legislation to prevent web sites from collecting data from children under 13 without parental consent, but stopped short of endorsing any other website restrictions.

Industry Group Plans Ad Campaign on Encryption. (7/23/98) Americans for Computer Privacy, an industry based pro encryption group, announced at a Washington press conference on Wednesday the details of a multimedia advertising campaign focused on building public support for legislation protecting use and export of strong encryption products. The grass roots effort to influence Congress will include 30-second television spots, one-page print ads and an online component.

FTC Wants More Authority Over Internet Privacy. (7/22/98) FTC Chairman Robert Pitofsky testified Tuesday before the House Telecommunications Subcommittee that the Congress should enact legislation giving it power to regulate and enforce Internet privacy, if the industry has not begun adequate self regulation by January 1, 1999.

EFF Cracks 56-Bit DES in Three Days. (7/20/98) The non-profit civil rights group, EFF, announced Friday that it built a computer with off the shelf parts for under $250,000 which cracked a message encoded in 56-bit DES. The EFF DES Cracker took only two days and eight hours to decode the message in a brute force search of 88 billion keys per second. In so doing, it disproved claims by the federal government that 56-bit encryption is secure.

Junger Plans to Appeal Encryption Ruling. (7/9/98) Peter Junger, the Ohio law professor who lost his court battle over encryption software last week, announced Wednesday that he plans to appeal. Junger had sued to enjoin the enforcement of government export regulations that prevented him from publishing encryption programs. Junger asserted that his programs were protected free speech.  However, Judge Gwin ruled that his programs were functional, not expressive, and thus not entitled much First Amendment protection. See, complete copy of Judge Gwin's Decision.

Encryption Export Controls Upheld By One Judge. (7/7/98) Encryption proponents lost a legal battle last Friday when U.S. District Court Judge Gwin ruled in the case Junger v. Daley that current encryption export controls are not unconstitutional. Last year another federal trial court judge held such rules are unconstitutional.

Daley Urges Online Industry to Act on Self-Regulation. (6/24/98)  Secretary of Commerce William Daley admonished companies that do business online to quickly adopt and enforce privacy principles, or else government regulators will do it for them. See, copy of Daley Address.

Industry Privacy Alliance Formed. (6/23/98) A large group of computer and Internet industry companies and associations announced on Monday the creation of the Online Privacy Alliance, a coalition committed to protecting privacy in cyberspace. The announcement came the day before a two day conference on privacy hosted by the Department of Commerce. Industry and the Commerce Department support industry self-regulation, in contrast to the Federal Trade Commission, which is seeking more power to regulate privacy on the Internet.

Commerce Department Holds Privacy Conference. (6/23/98) The Department of Commerce is hosting a two day conference on privacy on the Internet in Washington DC on June 23 and 24. Speakers and participants will include Secretary William Daley, Ester Dyson, industry representatives, privacy advocates, and others.

Computer CEOs Meet With Justice Officials. (6/10/98) Industry leaders and federal law enforcement officials who are at odds over encryption policy met privately in Sen. Diane Feinstein's Washington DC office on Tuesday. No significant progress or compromise was announced.

FTC Wants More Power to Regulate Internet. (6/5/98) The Federal Trade Commission held a press conference in Washington Thursday to denounce websites that collect information from individuals and then sell or abuse that information without notice or consent. Congressional committees, advocacy groups, and government agencies have been investigating and reporting on this problem for years. However, the FTC is also seeking to parlay its condemnation of privacy violations into increased FTC authority to regulate the Internet. Moreover, its action marks a break with the Clinton administration's policy of encouraging and relying on industry self-regulation.

Gore 'Electronic Bill of Rights' Speech Omits Encryption. (5/15/98) Vice President Al Gore used a commencement address at NYU on Thursday to announce a new administrative digital privacy policy initiative, which he called the "electronic bill of rights for this electronic age." However, neither Gore's address, nor a memorandum from President Clinton to department heads, contained any support for the right to encrypt data or communications. See, copy of Gore Speech.

Cell Phone Groups Sue FBI Over CALEA. (4/28/98) Two cellular phone industry associations filed suit Monday against the FBI in U.S. District Court in Washington DC alleging that the FBI enacted a regulation pursuant to CALEA that is arbitrary and capricious. The Plaintiffs argue that the improper regulation would force recent market entrants to bear the brunt of development costs associated with CALEA compliance, while incumbent carriers and the government would avoid expense. See, copy of Plaintiffs' Complaint.

House Holds Hearing on Internet Privacy. (3/27/98) David Aaron, of the Department of Commerce, testified at a House subcommittee hearing on internet privacy on Thursday, March 26, that the Clinton administration plans to hold a privacy conference in May.

Freeh Wants ISPs to Collect "Caller ID" Data for FBI. (3/10/98) FBI Director Louis Freeh told a U.S. Senate committee today that he wants Internet Service Providers to keep records on their users' "caller ID" and the associated Internet Protocols, for use by the Federal Bureau of Investigation. Freeh testified at a hearing on preventing child exploitation on the internet.