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Internet Security Legal Issues

The legislation provides for private right of action and recovery of monetary loss in an amount equal to the greater of the actual monetary loss or $2,500 for each violation not to exceed a total of $500,000. Litigation costs and attorney fees may also be assessed at the discretion of the court. Violations of the prohibited actions defined in the Act are viewed as a violation of the unfair deceptive act or practice in S.18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B). This piece of legislation adopts a user-protectionist stance against direct and indirect collection of information.

The Consumer Internet Privacy Protection Enhancement Act (HR 237 IH), Jan. 20, 2001, is a comprehensive piece of legislation that is designed to “protect the privacy of consumers who use the Internet” (1). The Internet Privacy Act places restrictions on commercial Website owners with respect to the collection of information that is personally identifiable. There are two main provisions of the Act which maintains that no commercial Web site operator may collect personally identifiable information unless providing:

1) notice to the user on the website in accordance with the requirements of subsection (b); and


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