The Center for Democracy and Technology (CDT) is pleased to have this opportunity to testify on the issue of unsolicited commercial email (UCE).

CDT is a non-profit, public interest organization dedicated to developing and implementing public policies to protect and advance First Amendment freedoms, individual privacy, and democratic values on the Internet. CDT is pleased that the Congress has recognized the important implications for these issues raised by the growth and prevalence of UCE.

Over the past few years, the Internet has rapidly become the cornerstone of an immense, global, multimedia communication network for culture, science and commerce. The Internet has proven wildly beneficial not only in promoting free speech, but in facilitating the operations of the commercial marketplace as well. The first, most popular, and widely used application on the Internet is electronic mail, or email. Across the globe, email is spanning distances and cultures by easing the exchange of knowledge, information, and resources.

Unfortunately, the very popularity and efficiency of email has created several problems. The one that we address today is that of unsolicited commercial email. Because of the effortlessness with which one sender can transmit a message to hundreds, thousands, or even millions of recipients, sending unsolicited commercial inducements to vast email address lists has been an irresistible temptation to some businesses.

Unlike postal mail, which is paid for piece by piece by the sender, the full cost of unsolicited commercial email is not borne by the sender. The current system of allocating the costs of moving information, including email messages, on the Internet allows the costs of sending bulk missives to be shifted from the sender to intermediaries, such as Internet service providers (ISPs), and to the recipients. While each individual email message only requires a minimal amount of Internet resources, when multiplied by the millions, such bulk messages can easily clog data pipelines and force both ISPs and recipients to spend time and resources to deal with what are frequently unwanted messages. Additionally, UCE, which can flood an individual's home or office email accounts, is viewed by many recipients as the computer equivalent of unsolicited telemarketing pitches.

However, responding to the problems caused by UCE is not simple. Not only does this very complicated issue touch upon First Amendment and privacy concerns, it also involves regulating a decentralized and global technical infrastructure.

The frustrations of the Internet community and the complexities of addressing UCE were aired at the Federal Trade Commission's half-day workshop on UCE held last June. At its conclusion, and at the request of then-Commissioner Varney, participants agreed to undertake a collaborative effort to explore possible responses to the growing problems associated with UCE. Between June of 1997 and this July, CDT coordinated a diverse group of organizations and businesses to explore the problems associated with UCE and identify potential solutions and respond to the FTC's charge. Participants in this effort include representatives from all my fellow panelists organizations this morning — America Online, the Coalition Against Unsolicited Commercial Email, the Direct Marketing Association — and many others. The work of the Ad-hoc Working Group on Unsolicited Commercial Email is detailed in the report delivered to the Federal Trade Commission in July; I have provided a copy to the Subcommittee and would like to submit it for the record.

The goal of the group and the report was twofold: to provide a factual basis for efforts to address UCE; and, set forth initial recommended actions, established through rough consensus of the group, that should be taken to address UCE. While the detailed review of legislative, technical and self-regulatory approaches to this issue and the broad recommendations of the working group provide a useful roadmap to those seeking solutions to the problems associated with UCE, as this Subcommittee quickly discovered during its effort to craft a legislative solution, consensus on the "silver bullet" has yet to be reached. For that reason, CDT and many other members of the Ad-hoc Working Group on Unsolicited Commercial Email are pleased that the subcommittee has decided to explore this issue further before deciding on a legislative solution.

As the Subcommittee proceeds to study this issue I believe three recommendations of the Ad-hoc Working Group should be kept in mind. Proposals to address UCE should:

These guidelines are broad and permit substantial flexibility in crafting legislative proposals with regard to UCE.

CDT and other members of the Ad-hoc Working Group have been monitoring the implementation of state laws and technical and self-regulatory developments that impact on UCE. The issue and the solutions ultimately chosen to address UCE, touch on core civil liberties concerns and have ramifications for the future of the Internet. An improper policy or technical resolution to the UCE issue could have a negative impact on online free speech and individual privacy, or have unintended consequences for the Internet. Precisely because the impact of legislation in this dynamic and evolving medium is difficult to predict, CDT is pleased that thus far Congress has chosen to tread carefully in this area. We look forward to working with the Subcommittee over the next months and thank you for your effort to understand the complexities of this issue and craft responsible solutions.