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A History of Privacy Issues: Personally Identifying Information
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    Personally Identifiable Information
    Consumers are often unaware of the reuse and disclosure of personal information they provide to others during daily transactions. While the Internet and other interactive media are shedding new light on the large market for personal information, consumers are still shocked to learn that information about their activities ranging from online browsing to grocery shopping is used for a variety of purposes and made available to other companies without their permission. When individuals become aware of the availability of personal information, many take steps to protect it. Lexis Nexis witnessed one such demand in August 1996 when thousands of consumers called, emailed, and faxed in requests to be removed from the P-Trak service. Services such as P-Trak, which provide "credit header" information, have been available for quite some time, however most consumers are unaware of their existence.

    You can choose to opt-out of P-Trak, and other personal locator services, at CDT's Operation Opt-Out web site.


    History - Lexis-Nexis P-Trak Service
    On Friday, September 20, 1996, 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 1996, 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, 1996, 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.

    Before it adjourned the 104th Congressional Term in November 1996, 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.


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