FCC HELP SOUGHT ENFORCING PRIVACY SAFE HARBOR FOR TELECOM
Effectiveness of U.S.-Europe safe harbor agreement on Internet privacy is in question for telecom carriers because FCC hasn’t agreed to enforce U.S.-Europe privacy agreement, source in Commerce Dept. (DoC) told us. DoC is in talks with Commission in effort to bring it aboard safe harbor agreement, although some sources said European Union (EU) wouldn’t recognize FCC as legitimate enforcement agency. Telecom and common carriers can join safe harbor agreement, but only as it relates to functions outside realm of common carriers, sources said. Agreement reconciles strong European privacy rules with U.S.’s self- regulatory stance, guaranteeing that U.S. companies can do business in Europe.
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FCC is examining issue thoroughly, source said, but there are many legal questions, among them extent of agency’s authority on issue. In negotiating safe harbor accord with EU, DoC obtained agreements from FTC to enforce safe harbor agreements, which extend EU’s strict privacy regulations to U.S. companies doing business in Europe. However, FTC can’t enforce actions against certain industries, such as telecom and airlines. DoC induced Transportation Dept. to enforce safe harbor regulations for airlines, but source said the FCC hadn’t yet come aboard.
But FCC’s questions about safe harbor stretch across Atlantic as well. Another DoC source said EU wasn’t recognizing FCC as enforcement body. However, source said Commerce negotiators might change EU’s mind if they could convince FCC to take enforcement responsibilities. But FCC isn’t top priority for DoC right now, source said. DoC negotiators are concentrating on getting Treasury Dept. to become enforcement agency for financial information.
Although FTC lacks enforcement power over common carriers and telecom, it can enforce regulations against common carriers as long as issue isn’t related directly to company’s common carrier functions, DoC source said. For instance, telecom company that offered free e-mail accounts to Europeans from its Web site could come under FTC enforcement if it violated safe harbor privacy agreements. EU has strict rules on “onward transfer” of information collected from European citizens. “Enforcement duties turn on the activity,” Commerce source said. “If it’s not a specific common carrier issue, then the FTC can be the enforcement body.”
DoC spokesman said absence of telecom and common carrier companies hadn’t hampered safe harbor agreement. Commerce announced Jan. 4 campaign to increase publicity for agreement in U.S. business community. Currently, only 12 companies are on DoC’s safe harbor list, none of them common carriers.