In policy discussions, privacy is frequently coupled with confidentiality and security. Although the terms are interrelated, it is important that the meaning of each be understood independently. Information privacy is the ability of an individual to control the use and dissemination of information that relates to himself or herself. Confidentiality is a tool for protecting privacy. Sensitive information is accorded a confidential status that mandates specific controls, including strict limitations on access and disclosure, that must be adhered to by those handling the information.
Security is the totality of safeguards in a computer-based information system.
Security protects both the system and the information contained within it from unauthorized access and misuse. Security consists of hardware, software, personnel policies, information practice policies, and disaster preparedness. While privacy protections are crucial to encourage free speech and free association on the NII, such protections are not absolute and must continue to be balanced, where appropriate, by concepts of legal accountability. In an interactive electronic environment, transactional information should be afforded the same high standard of legal protection as content. To achieve its full potential, the NII must incorporate technical and legal means to protect personal privacy.