For Your Eyes-Only: United States Internet Privacy Laws Play Catch-Up With The European Union Data Directive

Abstract

Global electronic commerce, driven by the development of the Internet, promises to be a key engine of growth in this century.  One of the most contentious issues facing businesses today is the ownership and use of personal data.  Europe has taken the lead in this area with a comprehensive approach, the European Union Data Directive, that became effective in 1998.  This paper compares the European Union approach to Internet privacy with that of the United States.  In comparing the two, the paper includes a brief discussion of current legislation under both approaches and also discusses critical issues in the debate for Internet privacy, including state-directed legislation vs. self-regulation, corporate privacy statements, and the opt-in versus opt-out approaches to consumer protection.  The paper offers perspectives on whether the United States will adopt new Internet privacy legislation, and on the feasibility and repercussions of maintaining the current approach.