WASHINGTON, June 4, 1998 -- The response of the Federal Trade Commission (FTC) to documented inaction to protect privacy online is inadequate, the Center for Democracy and Technology (CDT) said today. In the wake of overwhelming industry inaction, revealed by the FTC's survey of Web sites and review of trade associations policies, CDT called upon the FTC to immediately commence regulatory proceedings to establish enforceable rules of the road to protect the privacy of all American's online.

The FTC report can be found at: http://www.ftc.gov/reports/privacy3/index.html

"The FTC has administered the test and found few companies with passing grades, based on the performance its time for remedial measures," said Deirdre Mulligan, CDT Staff Counsel. "Over the past three years the FTC has gathered the knowledge and expertise necessary to set comprehensive guidelines for privacy online. CDT believes that the FTC should immediately take steps to ensure that internationally accepted principles for protecting personal information become the baseline for privacy protection during online activities."

CDT believes the FTC should take the lead in establishing privacy protections because it can move quickly, has developed expertise, and is more likely to result in comprehensive rules. "Punting this issue to Congress without taking this first step may result in a political nightmare for the Internet community, with controls on content and moves to a national identification scheme for the Ônet rearing their head," Jerry Berman, CDT's Executive Director, emphasized.

"These numbers should also serve as a wake up call for White House officials. Unless FTC action and industry efforts can bring about radical change before the next Congress, the Administration should put pen to paper and begin drafting enforceable rights to protect American's privacy," Berman said.

"The good actors in industry are working in a vacuum. With so few companies even taking the basic step of posting their privacy polices on the Web, steps need to be taken to create a playing field where self-regulation and government action can create effective safeguards," Mulligan added.

CDT will have a full analysis of the report posted to the CDT Web site soon.

The Center for Democracy and Technology, a non-profit organization, is dedicated to developing public policy solutions that advance civil liberties and democratic values in the new computer and communications media.