Twenty-seven states have gone ahead with draft legislation that could help them collect sales tax revenue for products sold online. President Bush's tax cut has overshadowed tech issues.
Lobbyists plan to use the time to head off new restrictions.
The 107th Congress has begun with tech lobbyists decidedly on guard, fearing that Congress may build momentum toward passing electronic privacy legislation, a move many tech companies believe would stifle Internet growth. Fighting the privacy legislation has become the No. 1 agenda item for technology industry associations. Nearly all technology groups, with the support of the U.S. Chamber of Commerce, have been urging Congress to allow the industry more time to regulate itself before imposing privacy laws. Tech companies fear that Congress may enact legislation that would require sites to obtain a user's permission before collecting or disseminating information about them vs. requiring Web sites to only give consumers a way to keep their data private. They argue that e-commerce should not face tighter privacy restrictions than offline shopping, such as phone orders.