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CNN Live Saturday

New Federal Law Protects Privacy Rights

Aired June 09, 2001 - 13:14   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DONNA KELLEY, CNN ANCHOR: You may have gotten something that looked like junk mail recently and thrown it away without a second look, and that could cost you some privacy. It may have been an opt- out notice from a company you do business with, a company that could sell your personal and financial information. A new federal law provides some protection, but the burden is on you.

Joining me from San Diego is Tena Friery. She is the research director for the Privacy Rights Clearinghouse. Hi, Tena, thanks for coming to talk with us.

TENA FRIERY, PRIVACY RIGHTS CLEARINGHOUSE: Hello, Donna.

KELLEY: Who has to send out this letter, this information to us?

FRIERY: The letter has to come from all banks, brokerage houses, insurance companies, and there are also a number of other companies that will have to send the notice, such as credit card companies, department store credit card companies. The list is fairly extensive.

KELLEY: Well, the problem that we're hearing is that it looks like junk mail. What is in the letter, and what does it look like? What should people watch for?

FRIERY: Well, there's no standard form for the notice itself. Each individual institution has pretty much leeway as to how to present basic information. Generally, they say "privacy policy."

KELLEY: We also hear that the letters, a lot of them, are confusing in the language.

FRIERY: That's very true.

KELLEY: So what is the important thing? If somebody sees this and wades through this tough language, the important thing is what? Your signature?

FRIERY: The important thing is to determine whether or not the notice gives you an opt-out address or a telephone number to call, and that is what tells your financial institution or other company that you don't approve of the sale, lease or otherwise sharing of information with outside companies.

KELLEY: And Tena, what information are we talking about? What information can they share with who they might sell it to, like telemarketers or others?

FRIERY: Donna, it's virtually any kind of information that may appear in the files of your financial records, and that would include perhaps medical information, if you're dealing with an insurance company that's affiliated with a bank or a credit card company, it could include information -- and it does include information about your income, the source of your income, whether you file for bankruptcy and -- except for account numbers and access codes, it can be anything.

KELLEY: And this can kind of snowball too. As one of my executive producers was saying to me, you know, two people can tell two people. What we were noticing is that you can sell it once, than that company can sell it again, and sell it to the next one, and never ending.

FRIERY: That's exactly right.

KELLEY: OK. So, to put a stop to it you're supposed to get these letters by July 1. If you thrown it out, or you missed this deadline, what can somebody do?

FRIERY: The right to opt out is continuing. That means consumers always have the right to opt out. The deadline is for companies to get those out, as you said.

Our organization has developed some information on our Web site, along with another organization, Junkbusters, to help consumers who are in exactly this situation. We have some sample letters. We also have some addresses that are easy to plug into the sample letters.

KELLEY: OK, good. So you should call the company if you miss the letter or the deadline, and we just had your Web site up there too, www.privacyrights.org.

Tena Friery, with the Privacy Rights Clearinghouse, we're glad you came to talk to us today. Thanks.

FRIERY: My pleasure.

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