[Congressional Record Volume 144, Number 96 (Friday, July 17, 1998)]
[Senate]
[Pages S8482-S8483]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BRYAN (for himself and Mr. McCain):
  S. 2326. A bill to require the Federal Trade Commission to prescribe 
regulations to protect the privacy of personal information collected 
from and about children on the Internet, to provide greater parental 
control over the collection and use of that information, and for other 
purposes; to the Committee on Commerce, Science, and Transportation.


          the children's online privacy protection act of 1998

  Mr. BRYAN. Mr. President, today the chairman of the Senate Commerce 
Committee and I are introducing ``the Children's Online Privacy 
Protection Act of 1998.'' Commercial Web sites are currently collecting 
and disseminating personal information collected from children that may 
compromise their safety and most certainly invades their privacy. This 
legislation will ensure that commercial Web sites that collect and use 
personal information from children will have safeguards in place to 
protect you and your family.
  The Internet is quickly becoming an significant force in the lives of 
our children as it moves swiftly into homes and classrooms around the 
country. Currently more than 3 million children under the age of 18 are 
online and the number is expected to grow to 15 million by the turn of 
the century.
  I think all would agree that proficiency with the Internet is a 
critical and vital skill that will be necessary for academic 
achievement in the next century. The benefits of the Internet are 
extraordinary. Reference information such as news, weather, sports, 
stock quotes, movie reviews, encyclopedia and online airline fares are 
readily available. Users can conduct transactions such as stock 
trading, make travel arrangements, bank, and shop online.
  Millions of people communicate through electronic mail to family and 
friends around the world, and others use the public message boards to 
make new friends and share common interests. As an educational and 
entertainment tool, users can learn about virtually any topic or take a 
college course.
  Unfortunately, the same marvelous advances in computer and 
telecommunication technology that allow our children to reach out to 
new resources of knowledge and cultural experiences are also leaving 
them unwittingly vulnerable to exploitation and harm by deceptive 
marketers and criminals.
  Earlier this spring, I held several meetings in Nevada with educators 
and parents' representatives to alert them of some of the deceptive 
practices found on the Internet. Representatives of the FBI and Federal 
Trade Commission informed Nevadans about some of the Internet's 
pitfalls. I found it extremely informative and enlightening and to some 
extent frightening.
  You may be startled to learn what information other people are 
collecting about you and your family may have a profound impact upon 
their privacy and, indeed, their safety.

  Once what may seem to be harmless information has made its way onto 
the Internet, there is no way of knowing what uses may be put to that 
information.
  Senator McCain and I wrote to the FTC asking them to investigate 
online privacy issues. Recently, the FTC completed the survey of a 
number of web sites and found that 89 percent of children's sites 
collect personal information from children, and less than 10 percent of 
the sites provide for parental control over the collection and use of 
this personal information.
  I was, frankly, surprised to learn the kinds of information these web 
sites are collecting from our children. Some were asking where the 
child went to school, what sports he or she liked, what siblings they 
had, their pet's name, what kind of time they had after school alone 
without the supervision of parents.
  Others were collecting personal financial information like what the 
family income was, does the family own stocks or certificates of 
deposit, did their grandparents give them any financial gifts?
  Web sites were using games, contests, and offers of free merchandise 
to entice children to give them exceedingly personal and private 
information about themselves and their families. Some even used cartoon 
characters who asked children for personal information, such as a 
child's name and address and e-mail address, date of birth, telephone 
number, and Social Security number.

[[Page S8483]]

  Much of this information appears to be harmless, but companies are 
attempting to build a wealth of information about you and your family 
without an adult's approval--a profile that will enable them to target 
and to entice your children to purchase a range of products.
  The Internet gives marketers the capability of interacting with your 
children and developing a relationship without your knowledge.
  Where can this interactive relationship go? Will your child be 
receiving birthday cards and communications with online cartoon 
characters for particular products?
  Senator McCain and I believe there must be safeguards against the 
online collecting of information from children without a parent's 
knowledge or consent. If a child answers a phone and starts answering 
questions, a parent automatically becomes suspicious and asks who they 
are talking to. When a child is on the Internet, parents often have no 
knowledge of whom their child is interacting.
  That is why we are introducing legislation that would require the FTC 
to come up with rules to govern these kind of activities. The FTC's 
rules would require commercial web sites to:
  (1) Provide notice of its personal information collection and use 
practices;
  (2) Obtain parental consent for the collection, use or disclosure of 
personnel information from children 12 and under;
  (3) Provide parents with an opportunity to opt-out of the collection 
and/or use of personal information collected from children 13 to 16;
  (4) Provide parents access to his or her child's personal 
information;
  (5) Establish and maintain reasonable procedures to ensure the 
confidentiality, security, accuracy, and integrity of personal 
information on children.
  The FTC must come up with these rules within 1 year. The FTC may 
provide incentives for industry self-regulatory efforts including safe 
harbors for industry created guidelines. The bill permits States' 
attorneys general to enforce the act.
  I believe these represent reasonable steps we should take to protect 
our privacy. Although time is short in this session, I hope we can find 
a way to enact these commonsense proposals this Congress.
  Most people who use online services have positive experiences. The 
fact that deceptive acts may be committed on the Internet, is not a 
reason to avoid using the service. To tell children to stop using the 
Internet would be like telling them to forgo attending college because 
students are sometimes victimized on campus. A better strategy is for 
children to learn how to be street smart in order to better safeguard 
themselves from potentially deceptive situations.
  The Internet offers unlimited potential for assisting our child's 
growth and development. However, we must not send our children off on 
this adventure without proper guidance and supervision.
  Mr. President, in my judgment, the legislation offered today by the 
senior Senator from Arizona and I provides those reasonable guidelines. 
I hope colleagues will join with me in making sure this legislation is 
enacted in this situation.
                                 ______