Editorial: Some firms take notice of privacy

Thursday, July 13, 2000 | 9:03 a.m.

As more and more horror stories emerge about how businesses violate privacy rights, especially by collecting information from customers over the Internet, there have been more calls for Congress to pass protections to prevent the selling or transfer of these personal records. It is encouraging, then, that some companies are taking some modest steps to curb these abuses.

As the Associated Press reported this week, many businesses are hiring privacy officers. At some of these companies these individuals have sweeping authority to set policies that protect consumers from having their privacy invaded. Some big names, such as American Express, AT&T, Citigroup and Prudential Insurance, have brought aboard privacy officers.

Indeed, it is hoped that one day a privacy officer will be treated with the same importance as a company's general counsel or chief financial officer. The bottom line, though, isn't just hiring someone who has a nice-sounding title. The key for businesses is to actually adopt policies where a customer's permission is first given before companies provide anyone else with such sensitive records. Besides, it doesn't make much sense -- and isn't good business -- to alienate a customer by invading his privacy.