Online privacy: Big Brother
caught with his pants down

Analysis/Commentary

A report released by the Governmental Affairs Committee of the U.S. Senate last Monday reveals that the U.S. government breaks its own rules on collecting consumer information over the Net. Chairman Fred Thompson, Republican from Tennessee, said that 64 agency Websites were found to collect cookies in defiance of restrictions imposed against such monitoring and tracking.

This admission represents an odd case of the government issuing a confession of ethical misconduct. Government policy on the Internet has aimed at remaining as honest and as transparent as possible. Obviously, however, agency heads have not been vigilant in policing their programmers or have taken a lazy approach to the privacy issue. The Departments of Education, Treasury, Energy, Interior, Transportation, as well as NASA, the General Services Administration, and the U.S. Mint are among the agencies found tracking visitors.

Collecting private information remains an attraction for both government and commerce alike. Managers of Websites want to know as much about users as possible, in the perhaps mistaken belief that they can read their minds and influence their conduct. And they usually don't want consumers to know that they are looking in. Hence the soft approach to self-regulation.

To date, commercial sites have responded to consumer privacy demands by posting ambiguous privacy policies and by appointing corporate privacy officers. Privacy tends to represent a marketable virtue, rather than a reality. Tougher approaches -- hardly ever used -- include measures identified as "notice, choice, access, and integrity."

Notice requires notice to users that the Website collects information; choice, that they know that they have a choice to refuse; access, that they have access to verifying the kind and quantity of information collected; and integrity, that they know that personal information will be protected. According to former FTC Chairman Pitofsky, only 20 percent of data-collecting Websites offer tough measures to ensure privacy.

Another solution to ensuring privacy might be the same as avoiding censorship. Two Internet research groups -- Publius and Freenet -- have begun to use distributed computing to ensure both privacy and security: the new peer-to-peer networks serve as alternatives to Web hosting on centralized servers. Publius and Freenet employ a network of volunteers equipped with software to encrypt and distribute "content" -- store complete Websites or documents, such as .pdf files and images.

The creators of the new peer-to-peer networks say that the best secrecy lies in total secrecy -- since in their model, only the reader and author know what sits on a distributed network at a given time. Files are broken up, encrypted, and positioned at random. Placement and downloading of content is equally anonymous. Ideally, the new hosting and delivery networks might harbor endangered files, such as those entrusted by dissidents or whistle blowers, but they could serve to protect commercial interests by foiling denial-of-service attacks and Website hacking.

April 18, 2001