-Caveat Lector-

from:
http://dailynews.yahoo.com/h/ap/19990818/tc/intel_privacy_1.html\
<A
HREF="http://dailynews.yahoo.com/h/ap/19990818/tc/intel_privacy_1.html">Intel
To Make Web Sites Add Warnings</A>
-----

Full Coverage
Internet Privacy

By TED BRIDIS Associated Press Writer

WASHINGTON (AP) - Intel Corp. (Nasdaq:INTC - news) will require Internet
sites that carry its advertising - including its popular ``Intel
Inside'' campaign - to warn consumers what personal details are
collected about them online, the company said Wednesday.

The decision by the world's largest maker of computer processors is the
latest move to convince the federal government that the high-tech
industry can regulate itself and that new privacy laws are not needed to
protect consumers on the Internet.

Intel, which spent $1.3 billion on all advertising last year, is among
the largest buyers of ads on the Internet, especially with its prominent
campaign featuring the familiar ``Intel Inside'' swirl logo.

Intel's announcement follows similar threats earlier this year by IBM,
Microsoft Corp. (Nasdaq:MSFT - news) and The Walt Disney Co. (NYSE:DIS -
news) to withhold advertising from Web sites that do not publish
adequate privacy warnings.

``We're now joining the ranks,'' said Ann Lewnes, Intel's director of
worldwide advertising.

Intel said it will require by Jan. 1 that all the roughly 200 ``Intel
Inside'' sites worldwide comply with privacy guidelines developed by the
Online Privacy Alliance, a trade group of companies on the Web.

The Federal Trade Commission, which recommended to Congress this summer
that new Internet privacy laws are not needed, praised Intel's
announcement.

The FTC told lawmakers that some Web sites ``still do not understand the
importance of consumer privacy,'' but decided companies voluntarily were
creating rules for handling sensitive personal information.

``Web sites will know they won't get advertising dollars unless they
protect consumers' privacy,'' said Vicki Streitfeld, a spokeswoman for
the FTC. ``It's the kind of thing we hope will create strong incentives
to create their own privacy policies.''

The OPA guidelines require Web sites to tell consumers what information
is being collected, allow people to ask not to have any information
gathered about them, keep private details secure and allow consumers to
review their information for accuracy and correct it.

As part of that ``Intel Inside'' campaign, which includes the largest
share of the company's ad expenditures, Intel pays a special premium -
mostly to computer markers - to include the familiar logo in their
advertisements.

Intel earlier this summer told other Internet sites where it buys
traditional ads they must publish privacy policies by Sept. 1.

Lewnes said Intel estimates that about 70 percent of Web sites that
carry the company's ads already publish privacy policies, and predicted
the others will shortly.

``We don't anticipate a very large problem,'' she said.

Intel angered privacy groups earlier this year when it included in its
latest Pentium III computer processors a unique serial number to
transmit to Web sites that request it to help verify the identity of
consumers.

Intel said the feature will help eliminate online fraud and control
access to sensitive data. Some privacy groups argued that the so-called
tracking technology will give companies unprecedented ability to trace
consumers' moves as they navigate the Web.

Some of those same privacy groups took a dim view of Intel's latest
announcement. David Banisar of the Washington-based Electronic Privacy
Information Center, said the OPA guidelines themselves are ``virtually
worthless'' because they ``set up procedural barriers that consumers
have to hop over to have some kind of marginal control over their
information.''

``I don't think in the long run it makes much difference at all, given
how limited the privacy protections are,'' Banisar said. ``This doesn't
provide any real level of comfort to consumers.''



------------------------------------------------------------------------


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