URBAN ECONOMIC POLICY COMMITTEE

INTERNET AND E-COMMERCE PRIVACY PROTECTION

WHEREAS, misuse of personal information about an individual, especially if available via the Internet, could jeopardize credit, job status, insurance, and basic civil rights; and

WHEREAS, both private sector and government collectors of information need to protect the rights of those individuals whose information they maintain; and

WHEREAS, state legislatures are becoming more concerned for the well-being of their citizens and have introduced consumer-protective legislation limiting the personal information that may lawfully be obtained from any person to that which is appropriate and relevant to a legitimate purpose established in advance; and

WHEREAS, the European Union requires all companies located in or doing business in the EU to adhere to a so-called Data Directive which prohibits countries from selling or sharing with other companies any data about their customers without the customer’s permission, and these rules are more stringent than those passed by Congress last year in the Financial Services Modernization Act; and

WHEREAS, American companies are protesting the EU rules on the grounds they are more stringent than U.S. laws and therefore could have "grave implications for the ability of U.S. businesses to compete effectively in the global marketplace," as well as raise the question of national sovereignty in the same way some World Trade Organization rules have done;

NOW, THEREFORE, BE IT RESOLVED that The U.S. Conference of Mayors supports federal, state and local efforts to enact fair legislation which balances the information needs of companies and government with protection of individual rights.