New Online Privacy Legislation Could Cost Web Businesses Over $100,000 Each

Web businesses would be forced to shell out as much as $100,000 apiece in compliance costs if Congress passes online privacy legislation mandating consumer access and enforcement provisions, according to a new study. Privacy advocates say the study erroneously assumes most . . . Web businesses would be forced to shell out as much as $100,000 apiece in compliance costs if Congress passes online privacy legislation mandating consumer access and enforcement provisions, according to a new study. Privacy advocates say the study erroneously assumes most Web sites have done little, if anything, to protect consumer privacy online.

The study, commissioned by the Association for Competitive Technology (ACT), sought to gauge the average cost of making commercial Web sites compliant with a provision allowing consumers to access information collected about them. It also estimated the average cost of building tracking databases in order to prove compliance if threatened with private lawsuits or government enforcement actions.

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