CDT Policy Post 2.33 - FTC Recommends Changes to Protect Personal Information.

Lexis-Nexis Statement regarding P-TRAK

Text of the 9/20/96 Letter from FTC Chairman Robert Pitofsky

FTC Press Release regarding recommendations and letter, 9/23/96

FTC Web Site

CDT Presents Testimony at FTC Hearings [June 5, 1996]

PRESS CLIPS

"Awash in Information" - Washington Post editorial, 9/28/96.

"FTC Seeks Credit Agency Access Limits" - Washington Post article, 9/24/96.

"FTC comes along on e-privacy" - c|net news.com article, 9/23/96.

"Online Databases Raise Orwellian Fears" - Washington Post article, 9/20/96.

"Privacy issue raised over Lexis-Nexis database" - San Jose Mercury News article, 9/19/96.

"Furor over personal info on Net" - San Francisco Examiner article, 9/19/96.

"Service pulls Social Security numbers" - c|net news.com article, 6/12/96.

November 5, 1996
Congress Requests Federal Reserve Study in Response to P-Trak Controversy.

Before it adjourned for the year, Congress added an amendment to the Omnibus Appropriations Bill which directs the Federal Reserve Board to examine whether the sale of "sensitive consumer identification information" creates "an undue potential for fraud". Although this is a half-hearted response to the FTC's recommendations and the public's cry for action, it is a small tribute to the power and importance of the Internet in turning public opinion into action.

Following passage of the bill, Chairman of the Senate Committee on Commerce, Science and Transportation, Sen. Larry Pressler (R-SD), ranking minority member Senator Ernest Hollings (D-SC), and Senator Richard Bryan (D-NV), sent a letter requesting the FTC to conduct a study of online and database privacy issues.

While no legislation was enacted, the outcry over P-Trak proved useful in two other areas. First, the P-Trak furor may have played a roll in eliminating an industry pushed exemption to the FCRA which would have allowed credit reports to be used to generate target marketing lists -- currently against FTC rules interpreting the FCRA. Second, the recent announcement by "Privacy Assured", a group of Internet companies that include Four11 and I/PRO, to voluntarily comply with a series of privacy protective information practices is clearly tied to a desire to respond to public concerns over individual privacy.

On Friday, September 20, the Federal Trade Commission recommended that Congress take action to protect the privacy of personal information by amending the Fair Credit Reporting Act (FCRA). The FTC's recommendations -- included in a letter to Senator Richard Bryan (D-NV) -- come on the heels of consumer outrage being expressed over the recently-released online database, P-Trak, offered by the information service Lexis-Nexis.

P-Trak provides personal information on millions of people across the country. For a fee, Lexis-Nexis subscribers can obtain personal information about an individual that can include name, current and prior addresses, maiden names, birth month and year, and current telephone number. In June, Lexis-Nexis stopped displaying Social Security numbers in response to complaints from consumers and privacy advocates about the availability of that information. However, P-Trak users can still search the database by Social Security number.

In response to Sen. Bryan's inquiry, Federal Trade Commission (FTC) Chairman Robert Pitofsky notes in the Sept. 20 letter that "... [t]he ready availability of this information through the tracking service may facilitate identity fraud, credit fraud, and other illegal activities." Chairman Pitofsky recommends strengthening the Fair Credit Reporting Act to provide protection to information such as social security number, mother's maiden name, prior addresses, and date of birth.

Those who are interested in removing their personal information from the database can contact Lexis-Nexis: Please provide your full name and complete address.

Web: http://www.lexis-nexis.com
Fax: 513-865-1930
E-mail: p-trak@prod.lexis-nexis.com
Snail Mail: Lexis-Nexis, ATTN: P-TRAK, P.O. Box 933, Dayton, OH 45401.