Copyright 1999 Times Mirror Company
Los Angeles
Times
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December 27, 1999, Monday, Home Edition
SECTION: Business; Part C; Page 3; Financial Desk
LENGTH: 621 words
HEADLINE:
SPECIAL REPORT: 1999/2000 REVIEW & OUTLOOK;
THE CUTTING EDGE:
FOCUS ON TECHNOLOGY;
REGULATION;
A SAFE BET: THERE'LL BE
MORE LEGISLATION
BYLINE: GREG MILLER, TIMES STAFF
WRITER
BODY:
The safest prediction
regarding government attempts to regulate the Internet is that there will be
more of them.
The number of Internet-related bills introduced in
Congress soared from just 75 two years ago to more than 350 just in the first
half of the current congressional session. Experts say that trend will surely
continue. But even as the policies proliferate, the primary issues they address
have remained fairly constant: privacy, free speech, encryption and taxation.
Privacy is the most active front, with consumers increasingly concerned
over how much personal information they shed while shopping or surfing online.
In Washington, industry and consumer groups are engaged in a pitched
lobbying battle. The online industry would like to preserve the status quo,
which relies heavily on industry self-regulation. But consumer groups are
pushing for new privacy laws and even a new agency to enforce them.
There are at least 13 privacy-related bills percolating in Congress,
ranging from one that would require companies to post and comply with privacy
policies to the "Electronic Privacy Bill of Rights Act" proposed by Rep. Edward
J. Markey (D-Mass.). The latter would require consumer consent for all
collection and use of data by Internet firms.
There are also ongoing
tensions between the U.S. and the European Union, which has adopted stringent
new privacy regulations and has threatened to block data flows to the U.S.
unless it complies with them. The U.S. is attempting to negotiate a "safe
harbor" that would protect American companies from such disruptions.
On
the free-speech front, the government is still trying to find a way to protect
children from pornography and other objectionable material online without
trampling the 1st Amendment.
The Child Online Protection Act, passed in
1998, remains in legal limbo. The act would force commercial Web sites to use
credit card checks or other systems to make sure children do not encounter
material deemed "harmful" to them.
Civil liberties groups have sued to
overturn the law, arguing that it amounts to censorship. Last year, a federal
judge blocked enforcement of the act until the case is resolved, probably in the
Supreme Court.
Another attempt to protect children, a bill sponsored by
Sen. John McCain (R-Ariz.), also faces stiff opposition from civil liberties
groups. The bill would require libraries to install filtering software before
receiving federal funding.
After years of bitter disagreement over
encryption export controls, the government and the tech industry seemed finally
to be inching toward a compromise in 1999.
Encryption software allows
users to scramble sensitive information sent over the Net, preventing others
from intercepting and reading it. The government, concerned that the technology
could aid terrorists, has prohibited U.S. companies from exporting advanced
encryption systems.
In September, the White House announced that it
intends to ease those restrictions. But industry leaders are waiting to have a
look at the details of the plan, which won't be announced until next year.
Finally, 2000 could be a decisive year in determining whether the Net
will remain a tax-free zone. A commission appointed to study online taxation has
so far appeared sharply divided.
Virginia Gov. James S. Gilmore leads a
contingent that would like to extend the moratorium on online taxes. But fellow
commissioner Gov. Mike Leavitt of Utah spearheads a group that is fighting to
impose taxes, arguing that online companies do not deserve such an advantage
over conventional retailers.
The Advisory Commission on Electronic
Commerce, as it is called, is scheduled to deliver its report in April.
LOAD-DATE: December 27, 1999 
