FOR IMMEDIATE RELEASE
December 5, 2000

SEN. SHELBY EXPRESSES PRIVACY CONCERNS WITH NEW COMPUTER EXCHANGE STANDARD


Senator Asks Federal Trade Commission to Review Privacy Implications of Customer Profile Exchange Standard

WASHINGTON, DC --- U.S. Senator Richard C. Shelby (R-Ala.) today expressed concerns with the consumer privacy implications resulting from the development of a system designed to improve the ability of companies to share consumer information.
In a letter to the Federal Trade Commission chairman, Senator Shelby asked the Commission to review the development of the Customer Profile Exchange Standard. The Customer Profile Exchange Standard was brought to Senator Shelby's attention by an article in the Business Section of the Washington Post, which detailed the efforts of several dozen e-commerce specialists working to coordinate the many different computer systems currently used to store consumer information such as a consumer's purchase history and personal data.
"I am greatly concerned with escalating efforts to exploit personal information in pursuit of a dollar," said Shelby. "While efforts to streamline e-commerce may seem innocent, we have all seen the zeal with which businesses pursue our most private personal information-and their complete willingness to sell our information for their own profit. It is absolutely wrong and the Federal Trade Commission should weigh these concerns as they examine the development of the Customer Profile Exchange standard."
A copy of Senator Shelby's letter is attached.

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December 5, 2000


Mr. Robert Pitofsky, Chairman
Federal Trade Commission
600 Pennsylvania Avenue, NW
Washington D.C. 20580


Dear Chairman Pitofsky:
I am writing to express my concerns regarding the consumer privacy implications related to the development of the Customer Profile Exchange standard. The efforts to develop this new standard were brought to my attention by an article which ran in the Business Section of the Washington Post on December 5, 2000. I have attached a copy of this article for your review.
It is my understanding from the article that the exchange standard was developed for the purpose of simplifying the process of storing and transferring information. It would provide a uniform system through which businesses would gather and transmit individual consumer data including: addresses, taxpayer identification numbers, telephone numbers, e-mail addresses, income level, marital status, among other items.
While this effort is intended to enhance commercial activity, I am troubled that insufficient attention has been given to the negative ramifications that the use of this exchange will have on the privacy of American consumers. When this standard is put in practice, the personal information of hundreds of millions of Americans will be readily and widely available. Therefore, in light of the significance of this new form of exchange, I respectfully request that the Federal Trade Commission review the development of this standard and closely consider its impact on the privacy of the American people prior to its being put in operation.
Thank you for your time and consideration of my request.


Sincerely,
Richard C. Shelby




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