1998, after the FCT threatened to seek legislation,
58
which the Internet industry began to
take serious efforts to launch self-regulation initiatives.
59
However, limited progress had
been made even though the industry came up with some proposals. This section will
analyze the factors identified in Lee’s article
60
to see if conditions on the Internet permit
successful and effective self-regulation on protecting online personal information. Note
that these factors are interrelated.
A. Analysis of Conditions Needed for Effective Self-Regulation from Traditional
Media’s Self-Regulation
1. Incentives
Industry incentives to participate and cooperate in self-regulation can influence the
result. The low level of industry participation and lack of market major players usually
result in failure of self-regulation.
61
a. Supports of industry major players
Traditional media’s self-regulation suggests that the support of major market players
may increase the possibility of the success of self-regulatory efforts.
62
This may not be
true in the case of the Internet. Unlike the media industries, the size of the Internet
58
Electronic Commerce: Hearings on H.R. 2368 Before the Subcomm. On
Telecommunications, Trade, and Consumer Protection of the House Comm. on
Commerce, 105
th
Cong. 307 (1998).
59
For example, over 60 corporations and associations formed the Online Privacy
Alliance to cultivate privacy principles and an enforcement system to protect online
privacy. Online Privacy Alliance, Mission, available at <http://www.privacyalliance.
org/mission/>.
60
Supra note 29.
61
See id.
62
See id., at 22.
Convention