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REPORT RINGS ALARM BELLS ABOUT PRIVACY ON THE INTERNET

Posted on February 12, 2000

      Government officials and privacy groups were surprised by last week's report from the California HealthCare Foundation that showed that health sites on the Web are not adequately protecting consumer privacy.

      The FTC has been monitoring e-commerce for the past half-decade without substantial incident, but privacy groups are touting the report's findings as proof that industry self-regulation of the Internet is not working.

      Seven of the sites criticized in the report are members of TRUSTe, one of the foremost privacy certification programs available. TRUSTe is concerned enough with the report's findings that it has decided to investigate the member sites and conduct a random privacy investigation of some of its other 1,300 member sites.

      TRUSTe plans to remind its members that any contracts with third parties that allow those parties to track consumer data must be specifically identified in their privacy policies.

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