Maryland is first state to tackle NII privacy issue

Revelations last year that America Online and other online service providers were selling subscriber information to direct marketers prompted the Maryland House of Delegates to hold a hearing on the issue in March.

The Maryland House of Delegates held the landmark hearing on SB 524, a bill to protect subscriber privacy rights, signifying the first time a state legislature has tackled such an issue.

Last year, advertisements appeared in direct-marketing magazines offering to sell online subscriber profiles. Soon after, newspaper reports led to the controversy.

The Maryland bill requires that an "online computer service may not disclose personal information concerning a subscriber to any other person unless the subscriber...has received notice...and consented to the disclosure."

Consent may be provided electronically or in writing and requires that customers be told what information is being collected, how it is being used and how they can access their records.

Opposing the bill were representatives from AOL, AT&T, Sprint, MCI and the Direct Marketing Association. Online service providers urged the state legislature to wait until the issue is addressed at a national level, whereas DMA more strongly opposed the bill.