Data sharing row heats up

Mr Jim Smith, Qwest's executive vice-president of national consumer markets, recently used this example of why it is good for consumers when company divisions share customer-account data.

"I just bought a Toyota four-by-four," Mr Smith said. "If Toyota shares that information with the guys that sell accessories, I would find that more useful than getting an e-mail about seat covers for a (previously owned) Camry. The idea is to understand what customers are purchasing and give them an opportunity to identify other services they might want to buy."

But when Qwest recently floated such a plan to share customer- account information within its divisions, consumers wanted no part of it. After receiving some 600,000 calls from customers on the matter, Qwest scrapped the plan. The controversy cast the latest spotlight on a sensitive issue - the privacy of personal information.

Technology has only accelerated the debate. Because of computer technology, data about individuals can be collected, stored and shared more easily than ever.

That's good, experts say, because such information makes it easier to catch criminals, prevent bank fraud and notify consumers about new products and services. It's also bad since it can lead to abuse such as identity theft, e-mail spam and dinnertime telemarketing calls. In the US, 700,000 consumers were victims of identity theft last year, according to the non-profit Identity Theft Resource Center.

The controversy in many privacy issues, experts say, would disappear if companies or government agencies were required to get an individual's prior approval to share data, known as "opt in".

Qwest repeatedly cited a 1999 appellate court ruling that supported its decision to use an opt-out approach. The court ruling ironically stemmed from a lawsuit filed against the Federal Communications Commission by Qwest's predecessor US West.

The difference between opt-in and opt-out is significant. It costs more to contact each customer and get their approval to share information and the approval rate is much lower. - (AP)