WASHINGTON — The political battle over online privacy--largely shelved after the Sept. 11 terrorist strikes--is poised for a comeback as a key senator prepares to introduce a bill requiring Web sites to obtain consumers' permission before collecting sensitive information, including Social Security numbers, financial data and medical records.
A draft of the bill, expected to be introduced as early as Thursday, already is mobilizing privacy advocates and business groups that are preparing for another legislative showdown.
It remains to be seen whether privacy--a hot-button issue 18 months ago--will be able to make it back to the front burner, particularly with so many other issues facing Congress, including legislation related to the collapse of Enron Corp., welfare reform and the budget.
After Sept. 11, many consumers expressed greater willingness to share personal information if it would lead to improved security or help fight terrorism.
Business groups already are asserting that the privacy problem has largely been solved through self-regulation and existing law, including the Gramm-Leach-Bliley Act, which created new protections for financial data.
"The bill is a solution in search of a problem," said Joe Rubin, lobbyist for the U.S. Chamber of Commerce. "There is no consumer demand for this."
Rubin said that recent surveys by the Federal Trade Commission show that most large Web sites already post their privacy policies voluntarily.
And only a small fraction of consumers, about 3%, actually read such policies, which Rubin said was another sign of consumers' lack of interest in the subject.
Privacy advocates say Internet users remain keenly interested in controlling their personal information, as witnessed by the recent uproar over Web portal operator Yahoo Inc.'s modification of its privacy policy to enable greater marketing of users' e-mail addresses.
Without new laws, consumers would continue to be vulnerable to companies that decide to change their policies or weaken protections, advocates say.
"The industry has shown that it can't regulate on its own," said Frank Torres, legislative counsel for Consumers Union, which is endorsing the legislation.
The bill is being sponsored by Sen. Ernest F. Hollings (D-S.C.) chairman of the powerful Senate Commerce Committee.
Hollings has long supported tougher privacy laws, but the current draft--dubbed the Online Personal Privacy Act--is less stringent than his proposal of two years ago.
