US trade authority calls for data protection laws

The US competition authority is pushing for the introduction of data protection legislation for the first time, marking a 'radical change in approach' to state interference in the on-line market place.'The Federal Trade Commission [FTC] is recommending that the US Congress enacts legislation dealing with on-line privacy, which would be a radical change in approach in the US,' said Eduardo Ustaran, an IT lawyer at City firm Paisner & Co.

'A powerful regulatory body in the US has for the first time tried to persuade Congress that data protection legislation is the way to go.' He said the legislation will be a big development for US law firms with the potential for work arising from it.

He added: 'This is quite important for European and UK business because of the issues of transfer of details outside the European Economic Area.'Last month the FTC modified its stance onself-regulation by calling for legislative intervention to protect consumer privacy on-line in a statement to the US Senate's commerce committee.So far, the FTC has pushed for industry to regulate itself.

But the statement asked Congress for consumer protection legislation following surveys which show that industry efforts have been insufficient to improve consumer confidence in the on-line market place.

It said: 'It is evident that on-line privacy continues to present an enormous public policy challenge.'A recent survey showed that 92% of consumers do not trust on-line companies to keep their details confidential.

Of these, 67% are 'very concerned' about potential misuse of information.

The statement said: 'To ensure consumer confidence in this new market place and its continued growth, consumer concerns about privacy must be addressed.'Around 90 million Americans now shop regularly on the Internet.

Anne Mizzi