Sun on Privacy: 'Get Over It'

Wed Jan 27 11:00:58 PST 1999

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Sun on Privacy: 'Get Over It'
by Polly Sprenger

12:00 p.m.  26.Jan.99.PST
The chief executive officer of Sun Microsystems said Monday that consumer
privacy issues are a "red herring."
"You have zero privacy anyway," Scott McNealy told a group of reporters and
analysts Monday night at an event to launch his company's new Jini
technology.

"Get over it."

McNealy's comments came only hours after competitor Intel (INTC) reversed
course under pressure and disabled identification features in its
forthcoming Pentium III chip.

Jodie Bernstein, director of the Bureau of Consumer Protection at the
Federal Trade Commission, said that McNealy's remarks were out of line.

"Millions of American consumers tell us that privacy is a grave concern to
them when they are thinking about shopping online," Bernstein said.

Sun Microsystems is a member of the Online Privacy Alliance, an industry
coalition that seeks to head off government regulation of online consumer
privacy in favor of an industry self-regulation approach.

"It is a conundrum, because I know that [Sun is] a member of the Online
Privacy Alliance, and they have spoken positively about responding to
consumer needs," Bernstein said. "This sounds very different than what we
have generally been hearing from members of the alliance."

Privacy watchdogs echoed Bernstein's remarks.

"I'm astonished by Scott's remarks," said Jason Catlett, CEO of Junkbusters,
a company that makes privacy software. "I wonder if he heard what Intel
decided yesterday? Intel obviously decided that privacy is such a hot spot
that they changed plans they've had for months in a matter of hours."

Catlett said the comments are even more surprising in light of the fact that
the undersecretary of commerce is currently in Europe to demonstrate to
foreign governments that American companies are committed to security and
privacy.

"David Aaron is in Europe now saying the United States has adequate privacy
protection the same day the chief executive of one of the leading computer
companies stands up and says 'you have no privacy,'" Catlett said.

"It's tantamount to a declaration of war."

McNealy made the remarks in response to a question about what privacy
safeguards Sun (SUNW) would be considering for Jini. The technology is
designed to allow various consumer devices to communicate and share
processing resources with one another.

"I think Scott's comments were completely irresponsible and that Sun and
Intel and many of these leaders are creating public policy every time they
make a product decision," said Lori Fena, chairman of the board of the
Electronic Frontier Foundation.

For consumers, McNealy's comments raised questions about Sun's commitment to
privacy.

"One might hope that industry leaders such as McNealy would propose
solutions to enhance citizen privacy rather than just telling them to 'get
over it,'" said Linda Walsh, a consumer concerned about electronic privacy.

"He may have no privacy because of his status as CEO. He shouldn't assume
his reality is everyone else's," Walsh said.

In December, a New Hampshire consultant alleged that Sun violated its online
privacy agreement and redistributed his personal information against his
wishes.

Sun representatives could not be reached for comment.

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