FC: Why is government not held responsible for privacy woes?

From: Declan McCullagh (declanat_private)
Date: Wed Sep 25 2002 - 21:35:48 PDT

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    [From the Independence Institute in Colorado (not to be confused with the 
    Independent Institute in California)... --Declan]
    
    
      OF PRACTICES BEHIND PROMISES...
       By Mike Krause
    
    This month, the New York Attorney General’s office announced the settlement 
    of a 30-month, 10 state investigation into the privacy practices of the 
    online advertising company Double-Click. Besides paying the states nearly 
    half a million dollars for investigative costs, and another nearly $2 
    million in legal fees to settle a separate class action suit, the company 
    is required, among other things, to disclose its online tracking activities 
    in the privacy policies of web sites that profile their users and submit to 
    an independent review of its practices and policies.
    
      All in all, the company paid a pretty steep price in time, money and 
    reputation for engaging in predatory privacy shenanigans, that when they 
    were disclosed, had citizens, privacy advocates and politicians howling for 
    blood.
    
    So, when are the various government agencies that routinely invade, 
    intrude, demand and then trample on the privacy of Americans, going to be 
    held to a similar standard?
    
    In announcing the settlement, New York’s Attorney General stated, “It’s 
    hard for consumers to trust e-commerce when they can’t see the practices 
    behind the promises.”  A fair enough claim, yet shouldn’t the same standard 
    apply to government privacy practices?
    
    More so than banks and credit bureaus, or even online advertisers, 
    government is simply the worst protector of privacy, or as Congressman Dick 
    Armey (R-TX) puts it: “The most intrusive force in the lives of Americans.” 
    Government is also, as Mr. Armey continues, “The biggest privacy offender.” 
    For example, we routinely hand over every scrap of financial information 
    about ourselves to the Internal Revenue Service.  Not out of choice, but 
    rather as a matter of law.  A recent audit of the IRS by Treasury officials 
    (kind of a fox guarding the other foxes sort of thing) found that the 
    tax-collecting agency has lost or misplaced 2,332 desktop computers and 
    servers containing taxpayer information over the last three 
    years.  Moreover, the report found “a material weakness in inventory 
    controls” every year since 
    1983.  (http://www.wired.com/news/0,1294,49615,00.html)
    
    Similarly, according to a scathing General Accounting Office (GAO) report 
    released in May 2001 stated, “We demonstrated that unauthorized 
    individuals, both internal and external to IRS, could have viewed and 
    modified electronically filed taxpayer data on IRS computers. For example, 
    we were able to access a key electronic filing system using a common 
    handheld computer.”
    DoubleClick’s problems arose several years ago when it was disclosed that 
    they were planning to linkup-without any meaningful consent- web surfing 
    and online buying habits with individual identifying information, in other 
    words build a database of who you are, what you buy and what sites you 
    peruse and use.  As a result, DoubleClick got deservedly slammed.  Their 
    stock price tanked, editorial scribblers condemned the practice and clients 
    quickly distanced themselves from the company.  DoubleClick themselves beat 
    a hasty retreat.  In other words, long before the recent settlement, 
    DoubleClick was swiftly punished by both the marketplace and consumer 
    sentiment.
    
    And what of the IRS?  Senator Charles Grassley (R-IA), the ranking 
    Republican on the Senate Finance Committee threatened to hammer the IRS’ 
    budget, “The IRS wouldn’t accept from a taxpayer the non-answer it has 
    given regarding the 2,300 computers…just as a taxpayer would be held 
    accountable for missing receipts, so must the IRS be held accountable…”
    
    Well, don’t hold your breath.  It's one thing for the government to punish 
    a private business, but quite another to actually do something about 
    itself.  The fact is, as long as the lions' share of tax dollars comes from 
    the income tax and as long as there are over a trillion and a half dollars 
    to be collected and spent by politicians (such as Mr. Grassley), there will 
    be an IRS, it will be predatory in nature and the congress will keep it so.
    Businesses like DoubleClick want your data and invade your privacy because 
    their clients desperately want to sell us their goods and services. As 
    consumers in a land of amazing choices, we can either utilize that to our 
    benefit or tell them to get stuffed.  And when they cross the line, both 
    the market and the law may well punish them.
    
    Government on the other hand collects your data and invades your privacy 
    without benefit of choice.  If you don’t want to comply, men with guns will 
    force you.  Since government is a growth industry, and since the first and 
    foremost rule of any bureaucracy is to protect and expand itself, the 
    priority of a bureaucrat is the collection of data on citizens, rather than 
    to protect the privacy of the citizens to whom the data relate.
    
    The net result is that in terms of making choices that affect their 
    privacy, Americans are more empowered as consumers in the marketplace than 
    as citizens of a country founded on liberty.
    
    Quoted in "Dependent on D.C.", the must read book on how the government 
    grows, Law Professor Paul Swartz makes the case “Americans no longer know 
    how their personal information will be applied, who will gain access to it 
    and what decisions will be made with it…Individuals whose personal data are 
    shared, processed and stored by a mysterious bureaucracy will be more 
    likely to act as the government wishes them to act.”
    
    
    
    
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