MPR: The Politics of Privacy

The Politics of Privacy
by Michael Khoo
January 13, 2000

With the 2000 legislative session still more than two weeks away, the debate over consumer privacy protection is shaping up to be a major issue. DFL leaders unveiled a privacy protection package as an alternative to one announced by Republicans last week. DFLers are calling privacy their top legislative priority this session.

THE PRIVACY DEBATE leaped onto the radar screens of many Minnesotans last summer when DFL Attorney General Mike Hatch sued US Bancorp over their use of customer financial information. Hatch says prior to the lawsuit, he hadn't understood the importance of the issue.

Hatch: I was not aware of the depth of the exchange of information going on in our society until June of this year. Nor was I aware of the depth and breadth of the anger of people with regard to the fact that their private information is being distributed to people beyond their control. They're very bitter about it. They want change. They want personal empowerment.

In addition to his success against US Bancorp, Hatch also has a suit pending against Minnesota Public Radio, accusing the network of misleading members about how it shares information with other organizations. DFL legislative leaders joined Hatch to detail new initiatives intended to shield consumers from prying eyes. Senate Majority Leader Roger Moe says new high-speed information systems have created a new threat to privacy.

Moe: It's a lot different than when records where kept in shoe-boxes. That's not the case anymore. We have a great deal of information about people and it is accessible and, unfortunately, we have some of our most-established institutions in the business of making money off of that information, your personal information.

The DFL package covers some of the same ground outlined in a Republican proposal last week, including safeguards on financial and medical information and limits on telemarketing practices. Both plans would restrict the state government from disclosing data collected while issuing licenses and permits.

Earlier this week, the U.S. Supreme Court upheld a similar federal law barring states from sharing drivers' license data without consent. But while the GOP plan gives consumers the right to opt-out of data exchange practices, the Democrats' plan assumes consumer information is off-limits unless they explicitly opt-in. Attorney General Hatch says the "opt-in" plan affords greater protection. But Republican House Majority Leader Tim Pawlenty says the distinction isn't particularly important.

Pawlenty: Data management and privacy issues really don't need to be partisan. I think the attorney thinks he's got a hot potato here so he's throwing some red meat around. But beyond that, I think if everybody kind of calms down, we can find a very good bipartisan solution to these issues.

Pawlenty anticipates a compromise will allow some type of privacy legislation to pass in the upcoming session.

Blois Olson says politicians should be careful in tackling the privacy issue. Olson is the co-publisher of Minnesotapolitics.com. He says political campaigns do their own trafficking in the financial information of their contributors.

Olson: Are these people large donors, medium donors, or small donors? Do they give $25, $100, or $1,000? That's what it is. And I think that candidates and politicians have to be careful jumping on this bandwagon.

Olson says, however, he expects most Minnesotans will distinguish between political fundraising on the one hand and the commercial use of credit records or mortgage payment information on the other.

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