Just last spring, Microsoft was forced to reveal that it had been collecting data on users who had expressly requested anonymity. And Internet streaming media powerhouse Real Networks was forced into an embarrassing purge of features in its RealJukebox product that allowed the company to track its customers' tastes in music. Some privacy advocates believe technology, not governments, will eventually solve many of these problems. Online privacy protection, says Rotenberg, has the potential to become a significant industry in itself. But it will grow much faster, he says, with a common legal code.
Most online companies insist they can regulate themselves.
Right now, victims have no clear legal recourse. And while nobody wants a Big Brother in Washington or in Brussels policing the Internet, some cross-border organization must enforce standards for the handling of personal data. Unless U.S. companies come forth with tough, enforceable guidelines of their own, government regulators will rush in. That's not the kind of deal many of us would choose. But it may well become the only choice.