chapter theme

This chapter covers statutes that are designed to protect consumers. It also discusses the important role that the FTC plays in enforcing consumer rights.

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cyberlaw

The Internet opens the way to a brave new world of information. Whatever you want to know, you likely can find it on the Internet: The population of Tanzania? The weather in Beijing? The schedule of performances for the Spanish Riding School in Vienna? But information flows both ways. While you are downloading data from the Web, you may also be uploading all sorts of personal information. Some sites explicitly disclose that the price of admission is data about you. Other sites secretly place a cookie on your hard drive--not a chewy treat, but a file to store the information that you provide. When you revisit the site, it automatically enters your hard drive and opens the cookie file so that it knows who you are. Have you noticed that some Web sites greet you by name when you sign on? This feature can be a real convenience--no need to reenter your credit card number each time you place an order. But do you really want your credit card number--or your taste in music--floating in cyberspace?

Both private industry and the government are beginning to take small steps toward greater privacy protection. Some Web browsers have a feature that automatically notifies you whenever a Web site transmits a cookie to your hard drive. The Center for Democracy and Technology (http://www.cdt.org) filed a complaint with the FTC alleging that Intel, the microchip manufacturer, committed an unfair trade practice when it shipped the Pentium III chip. This chip came embedded with a serial number that could be used to identify the source of any Internet communications such as e-mail or online purchases. Intel thought the serial number would be helpful in controlling hackers and online fraud. When privacy advocates objected, Intel began shipping the chip with the serial number turned off. However, a clever hacker or webmaster might be able to activate the feature secretly. It turned out that Intel was not alone in using serial numbers to identify a source computer. The Windows operating system automatically embedded a unique identifying number in every document created by Word or Excel. Microsoft, creator of Windows, agreed to eliminate the identifying number in subsequent software releases. Even video games played over a network automatically generate an ID number that enables the server to verify the authenticity of the software. The moral? Do not expect to be anonymous on the Internet.

The FTC continues to investigate the need for more privacy regulations to protect consumers. Meanwhile, the agency's Web site offers tips for protecting your privacy: A Consumer's Guide to Travel in Cyberspace (http://www.ftc.gov/bcp/conline/pubs/online/sitesee/index.html).

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