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Microsoft Scrambles onto Privacy Law Bandwagon

Microsoft, typically opposed to national privacy laws, has apparently switched course - possibly to avoid having to deal with stricter state laws - and joined eBay and Hewlett-Packard in supporting national legislation, AdAge reports (via MediaBuyerPlanner). Microsoft's senior VP/general counsel and corporate secretary Brad Smith cited growing worries about fading consumer trust in the internet and difficulties in complying with conflicting state legislation as reasons for the government to adopt privacy legislation.

At a congressional luncheon last week, Smith said legislation, in addition to pre-empting state laws, should cover offline as well as online privacy and should give consumers the right to inspect or correct the information that companies collect; he also said companies should take reasonable steps to protect information.

Some, though, are worried that national privacy legislation would weaken tougher state laws. Rep. Ed Markey, D-Mass., last week said the legislation being pushed by Republicans would loosen standards adopted by Illinois and California for notifying consumers of privacy breaches and would eliminate state enforcement. He called the legislation "a joke," saying "company exposure to risk is almost negligible."

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