Bush plan to scrap e-privacy

LONDON - US President George W. Bush is trying to reverse an agreement between America and Europe intended to ensure the privacy of people buying goods over the internet - claiming that it could be "burdensome" on US multinational businesses.

The new administration is pressing for a delay - at least - of the treaty that was hammered out last year after months of negotiation between the Clinton administration and the European Union, to safeguard the privacy of European internet users.

The Europe-wide laws on data privacy make it an offence for a European company to pass on information about customers to organisations that do not meet EU data privacy guidelines. But America was also caught in that description because it has no data privacy laws. The agreement would have defined some US internet companies as a "safe harbour" for European data, as long as they met certain standards. The US Treasury and Commerce department has complained to the EU that the measure is a threat to transatlantic e-commerce, and could burden website operators with red tape.

Ian Bourne, strategic policy manager of Britain's information commissioner's office said: "The safe harbour system is meant to be simple, cheap and easy for US firms to sign up to. If a company like Hewlett-Packard could do it, why couldn't others?"

Jodie Sangster of the UK's Direct Marketing Assocation said it would be "very disappointing" if the agreement was taken away, adding: "It will make it much harder for European businesses to trade data with the US."

Such trade is potentially worth millions of pounds.

American politicians claim the EU's data privacy rules are tantamount to a trade barrier because they could prevent US companies from marketing directly to European residents using data acquired in Europe.

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