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collected Or as information privacy lawyers and public policymakers might phrase it: Does the data collector have any legal duties to the data subject from whom the data is collected To get these answers, explain how we got them, and add recommendations, the following section discusses law as an enabler for private-sector use of biometrics
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We begin with some background related to e-commerce and e-government that sets the stage for our discussion of how biometrics can be used with legal enforceability in various transactions, much the way manually executed signatures have been used for centuries
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e-commerce refers to business processes that shift transactions to a computer-mediated network, such as the Internet or some other nonproprietary, Web-based system More specifically, these business processes involve the transfer of ownership or rights to use goods or services e-commerce consists of both business-to-business (B2B) transactions and business-to-consumer (B2C) transactions Prior to the evolution of the Internet, these transactions would normally have taken place by such means as the telephone, postal mail, facsimile, proprietary electronic data interchange systems, or face-to-face contact1 e-commerce has skyrocketed over the past several years and still has a long way to go! For example, in 1995, sales generated by the Web totaled $435 mil2 lion In 2000, e-commerce sales reached an estimated $1 trillion This figure may be broken out by sector:
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Manufacturing: $777 B Wholesale: $213 B Service Industry: $ 37 B Retail: $29 B
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US Department of Commerce, The Emerging Digital Economy II, June 1999 For a discussion of definitions, see Thomas L Mesenbourg, Measuring Electronic Business: Definitions, Underlying Concepts, and Measurement Plans, available at http://wwwcensusgov/epcd/www/ebusineshtm US Department of Commerce, E-stats, March 18, 2002, available at http://wwwcensusgov/ eos/www/papers/estatstextpdf
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15: The Law and Private-Sector Use of Biometrics
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e-commerce is expected to grow, with several estimates predicting sales of well over $37 trillion by 2004 According to Forrester Research,3 between 2002 and 2006, online trade growth will look like this (figures in US billions):
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Similar to e-commerce, e-government refers to government agencies use of information technologies, such as the Internet or other nonproprietary, web-based systems, to provide interactions with citizens, organizations, or other government agencies Although this chapter focuses on private-sector activities, it s also important to consider e-government for two primary reasons First, the private and public sectors are not isolated; private-sector entities have countless, regular dealings with government, and biometrics may be able to play an increased role in facilitating these transactions Second, the e-government market, like the e-commerce market, is huge and growing; how e-government embraces biometrics could have a profound influence on how the e-commerce world will use it The demand for e-government continues to grow In a convergence of interests, citizens want it, businesses support it, and government gains by providing it According to the United States Department of Commerce, as of September 2001, approximately 143 million Americans are currently using the Internet Just over half of all residences in the nation, 539 million US homes, have an Internet connection4 Many of these citizens want more online interactions with the government and they expect the quality of online e-government services to be comparable to other ways of interacting with government As of 2001, the US Government had about 27 million pages of information available online Aside from its interest in serving its citizens, the government has a strong economic incentive to provide greater e-government services because of the cost savings involved For example, the United States Mint reportedly saves $5 per transaction done online Other government agencies show similar cost savings5
Julie Meringer, Forrester Research, E-Commerce Next Wave: Productivity and Innovation, Programme and Presentations for the Seminar on Revenue Implications of E-Commerce, April 22, 2002, World Trade Organization Committee on Trade and Development, available at http://wwwwtoorg/english/tratop_e/devel_e/sem05_e/sem05_prog_ehtmPD US Department of Commerce, Economic and Statistics Administration, National Telecommunications and Information Administration, A Nation Online: How Americans Are Expanding Their Use of the Internet, February 2002, available at http://wwwntiadocgov/ ntiahome/dn/ Mary Mitchell, General Services Administration, The State of Federal eGovernment and eBusiness, January 23, 2001, available at http://wwwegovgov/presentations/DigGovMI12001/ sld001htm