Anti-spyware legislation will have negative effect

(Washington, D.C.) – The Council for Citizens Against Government Waste (CCAGW) today urged members of Congress to oppose H.R. 2929, the Safeguard Against Privacy Invasion Act (SAPI), being debated in the House Energy and Commerce Committee.  The bill, ostensibly designed to protect personal computers against spyware, will instead hinder innovation and harm the business practices legitimate companies.

“SAPI is another example of government attempting to mandate technology,” CCAGW President Tom Schatz said.  “While Congress’s intentions may be honorable, the government has a long history of lagging behind the private sector when it comes to innovation in technology.  This bill will only serve to continue that failed legacy.”

Spyware is used by advertisers to secretively install tracking programs on individual users’ computers to help them identify target audiences.  H.R. 2929 would require “notice and consent” procedures for programs used to collect information.  As has happened in the past with similar laws (i.e. CAN SPAM), users are often confused by such notices and disregard them, therefore allowing the spyware to be installed on their computer without their knowledge, making the legislation ineffective and unenforceable.  The bill could also have a negative effect on legitimate business, such as anti-virus companies whose programs relay information about possible infections on computers and Internet service providers who provide automatic updates of their software.

“As technology develops, those that use the spyware this bill is attempting to prevent will find new ways to infiltrate personal computers.  Meanwhile, legitimate businesses are being harmed,” Schatz continued.  “The private-sector is already offering valid options to consumers concerned about spyware.  Numerous anti-spyware programs can be purchased or even downloaded for free off the web.”

Congress is following a trend that began in the states.  Utah became the first state earlier this year to pass legislation requiring consent before spyware is installed and the ability for it to be removed easily, as well as prohibiting context-based pop-ups.  It also was written in a way that would prohibit legitimate companies from providing services and information consumers need.  Yesterday a Utah judge issued an injunction preventing the law from going into effect until its constitutionality is resolved.

“The case in Utah illustrates that a similar, overbroad federal law would be tied up in courts for years, costing taxpayers even more money,” Schatz concluded.  “The government should stay out of the business of expensive technology mandates and rely on innovate private-sector solutions to the problem of spyware.”

The Council for Citizens Against Government Waste is the lobbying arm of Citizens Against Government Waste, the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.