Legislators, Bankers Spar on Internet Privacy Law

By Anason, Dean | American Banker, September 19, 1997 | Go to article overview

Legislators, Bankers Spar on Internet Privacy Law


Anason, Dean, American Banker


Banking officials clashed with government representatives Thursday over the need for financial privacy laws in cyberspace.

Maintaining a united front at a House Banking subcommittee hearing, bank lobbyists set forth eight privacy principles adopted last week by four national banking trade groups.

The guidelines-which include giving customers the option to prevent disclosures of personal information and limiting corporate employees' access to such data-were Exhibit A in the case that banks can responsibly police themselves.

"Few consumers would patronize a bank that failed to provide an adequate level of privacy," said Marcia Z. Sullivan, government relations director for the Consumer Bankers Association, which has consistently advocated a code of conduct. "It is really easy for a dissatisfied customer to find another bank."

But even before hearing the industry testimony, Rep. Bruce F. Vento said he was skeptical that consumers would be protected without government intervention.

"We have not achieved a critical mass where the profits from greater consumer privacy protections reward and outweigh the losses from the company not being able to use the information," the Minnesota Democrat said.

He called for Congress and regulators to set "benchmarks" for privacy protection, clarifying the meaning of consumer consent and defining how information can be shared with affiliates and outsiders. Such standards, he said, would inspire public confidence and allow electronic commerce to flourish.

The industry's attempt to preempt congressional action with a self-regulatory code ran into two obstacles: a federal consumer advocate's call for legislation and a privacy scholar's critical evaluation of current banking practices.

Leslie L. Byrne, director of the U.S. Office of Consumer Affairs and a former Virginia congresswoman, said new laws are necessary to provide "legislative standardization" of industry and government privacy principles and to guarantee their implementation.

Alan F. Westin, a Columbia University professor and publisher of Privacy and American Business, said that of 50 bank Internet services studied by the Center for Social and Legal Research, which he heads, 39 collected personal and financially sensitive information from consumers but none disclosed their information practices. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Legislators, Bankers Spar on Internet Privacy Law
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.