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'E-commerce vs. Civil Liberty … Round One'_Matt Hardisty.

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The immanent introduction of the 'Regulation of Investigatory Powers (RIP) Bill' in October 2000 has served to raise a number of questions regarding civil liberty. Addressing the issue of encryption and access to encrypted data, not covered in the Electronic Commerce Bill, the government sees the RIP Bill as a means of protecting national security, preventing crime and securing public health. Charles Clarke from the Home Office says: "The Bill tackles a big issue - the balance between protecting individual rights and ensuring that effective powers are in place to catch criminals". The bill ensures that every ISP will have a black box that monitors all the data traffic passing through its computers, hard wired to a special centre installed in M15s London HQ. The Home Secretary therefore has the power to issue warrants to the ISPs to intercept communications of subscribers. It is becoming increasingly apparent that commercial forces are shaping the architecture of the Internet and that the commercial potential of the Internet will not develop until such architecture is in place. These developments are posing novel trade-offs between law enforcement, commercial progress and individual liberty (privacy).

The use of customer information is at the heart of the debate, given the increase in online purchase power wielded by consumers, meaning that vendors will have access to rich profiles of shopping and buying patterns. Verdict's latest research indicates that by 2005, shoppers will spend more than £12.5 billion online. The success of e-commerce companies will therefore become a question of public trust, especially given the recent case against Double Click, which were found to be fusing two databases without the knowledge of their customers.

There is the fear that increased costs will be born by individual business, due to an impending increase in the number of civil liberty cases taken up by consumers regarding data abuse. There is also the additional danger that Tony Blair's vision of the UK being the global hot bed of e-commerce by 2002 is under threat, with companies moving to Ireland where encryption keys are protected from the government. Business however, needs a secure environment in which to trade and consumers need a degree of reassurance during digital transaction.


matt@folkdevil.com

© Matt Hardisty, 2000, 2001. All Rights Reserved.