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October 8, 1996
The Honorable Robert Pitofsky
Chairman
Federal Trade Commission
6th and Pennsylvania Avenue
Washington, DC 20580
Dear Chairman Pitofsky:
We are writing to request that the Federal Trade Commission conduct a study
of possible violations of consumer privacy rights by companies that operate
computer data bases.
In recent weeks, a number major new organizations, including USA Today and
the Washington Post, have featured protests by Internet users over the nonconsensual
sale and usage of consumers personal data by companies that operate computer
data bases. The companies are allegedly obtaining and compiling personal
background data on individual citizens into electronic transmitted data
bases for sale to private entities or individuals, including attorneys,
banks and credit card companies, without the consent of the targeted individuals.
the data bases reportedly include social security numbers, drivers licenses
numbers and other identifying information, credit files and medical records.
We have received calls and letters from constituents who are greatly disturbed
about the compilation, sale, and usage of these data bases. They, as well
as consumers in general, are concerned about the potential intrusion upon,
and violation of individual privacy rights. There also is concern about
the potential abusive and unlawful usage of the data.
In light of these concerns, we request the Commission investigate the compilation,
sale and usage of electronically transmitted data bases that include identifiable
personal information of private citizens without their knowledge. The
probe should address, but not be limited to, the following questions and
issues:
(1) Is the non-consensual compilation, sale, and usage of data- base a
violation of private citizens civil rights?
(2) Are the data-bases subject to unlawful usage? Do they create an undue
potential for fraud on consumer?
(3) Are the compilation, sale and usage of consumers personal data consistent
with the Fair Credit Reporting Act and federal telemarketing regulations?
(4) Are there ways consumers can prevent data-based service companies
from including their personal background information in commercial data
bases absent their consent?
We believe a study of this matter should begin immediately. We would like
you to submit a report on your study within six months of your within six
months of your findings and conclusions for such legislative action as the
Commission deems appropriate. Please respond as to the Commission's final
declaration regarding this request.
Thank you for your assistance
Senator Bryan
Senator Hollings
Senator Pressler
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