[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

Clinton outlines new privacy legislation



In his remarks today at Eastern Michigan University's commencement, Clinton
outlined new privacy legislation.  Here's a transcript of his remarks on the
subject.

James



>From our earliest days, part of what has made America unique has been our
dedication to freedom, and the clear understanding that real freedom
requires a certain space of personal privacy.

Today, as information technology opens new worlds of possibilities, it also
challenges privacy in ways we might never have imagined just a few years
ago.  For example, the same genetic code that offers hope for millions can
also be used to deny health insurance.  The same technology that links
distant places can also be used to track our every move on line.

In this Information Age, we can't let new opportunities erode old
fundamental rights.  We can't let breakthroughs in technology break down
walls of privacy.  Our response to this challenge will affect the lives of
every single member of this graduating class and the lives of your children.

We are working with the Internet industry to raise privacy standards.  In
the last year alone, the share of commercial websites with privacy policies
has risen a lot, and we will do more.  But, as my wife has said many times,
some of these privacy issues presented by information technology are so
sensitive they must have the protection of law.

We have taken steps to protect the privacy of children on-line, preventing
websites from collecting information from children without a parent's
permission.  I proposed the first set of national standards to protect the
privacy of on-line medical records, to ensure that your personal health
information doesn't fall into the wrong hands.  (Applause.)
You shouldn't have to worry that your employer is looking at the medications
you take or the ailments you have.

Today, I'd like to ask you to think about the challenge to our financial
privacy coming out of the Information Revolution.  We are moving from cash
to electronic transactions.  A bank is no longer just a bank, it's often
linked with an insurance firm, a broker, a travel agency.  All this helps to
give us added convenience, lower prices and more choices. But it's also
forcing us to redefine financial privacy for the Information Age and to
rewrite the rules that go with it.

There was a time when protecting your financial privacy meant safeguarding
your passbook.  Today a financial record isn't just about what you're worth,
it can paint a picture of who you are.  Every time you write a check, use an
ATM, make a purchase with a credit or debit card, there is a record -- a
record that technology can sort and track -- what dish you ordered at a
restaurant, what clothes you bought at the mall -- that makes it easier for
others to mine all of that information for their own profit.

We've taken some historic steps to stop information about your personal
spending habits from being shared without your permission.  But even today
the law doesn't prevent firms within a financial conglomerate from sharing
information with each other.  In other words, the life insurance company
could share information about your medical history with the bank without
giving you any choice in the matter.  The bank could share information from
your student loans and your credit cards with its telemarketer, or its
broker, again, without giving you any choice.  I believe that is wrong.
(Applause.)

Today I present a plan to protect the privacy of Americans' financial
records.  I challenge Congress to act on it this year.  Because your
information doesn't belong to just anyone; every consumer and every family
deserves choices about how their personal information is shared.

First, before you financial information is shared between two affiliated
companies, say, a credit card company and an insurance company, you would
get notice, and you could say no.  Second, for the most sensitive type of
information, I think there should be an extra level of protection.  As more
banks and insurance companies merge, lenders could gain access to private me
dical information and many insurance records.  But no one should have to
worry that the results of their latest physical exam will be used to deny
them a home mortgage or a credit card.  Under my plan, you'd get to say no.
(Applause.)

Third, we would add that same safeguard to the information that makes up
your personal spending identity, such as the list of every purchase you've
ever made by check or debt or credit card, everything you buy.  Again, that
information could be shared only if you say yes.

And finally, to make sure you have control over the comprehensive records
that financial institutions may assemble about you, we'll make sure you have
access to those records and the right to correct mistakes in them.  We must
be able to enjoy the benefits of technology without sacrificing our
privacy, to maximize the promise of the Information Age and still protect
our individual liberties.

http://www.whitehouse.gov/library/PressReleases.cgi?date=0&briefing=3