From the Office of Senator Kerry

Kerry Criticizes FTC Approach on Internet Privacy

Tuesday, May 23, 2000

"The FTC plays an important role in oversight and regulation in our economy, and I believe that its commissioners have navigated admirably through the complexity of the New Economy.

However, I very respectfully disagree with the regulatory approach to Internet privacy proposed by the FTC, because I believe it could actually harm consumers in the long run by limiting their choices on the Internet. Consumers have a legitimate expectation of privacy on the Internet, but I also believe they want an Internet that is free and which offers more choices, not less. The FTC's approach could limit consumer choices and have unintended consequences for the growth of e-commerce.

Congress will never be light-footed enough to keep up with the technological changes taking place in the online world. If we do regulate, we should do so in a manner that provides basic consumer protections but affords the marketplace the opportunity to determine how those interests should be protected.

Soon, I will offer legislation that will provide basic consumer protections without the risk of hindering the growth of e-commerce. My legislation will require Web sites to clearly and conspicuously disclose privacy policies, set goals for industry on how to protect privacy without mandating how industry should satisfy those goals, call for continued examination of privacy issues which I believe the FTC has not yet adequately addressed, and require additional reports to Congress on whether any particular area calls for further legislation.

By taking these steps now, we do not foreclose the opportunity for further regulation in the future. But by over-regulating before we have all the answers in this new industry, we risk limiting its potential for growth and further limiting choices for consumers."


Contact: Kelley_Benander@kerry.senate.gov. All other press inquiries email David_Wade@kerry.senate.gov