FT 5/5/2000: "Business lobbies against e-mail intercept plans"

[Caspar Bowden]

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UK groups attack e-mail plans
By Carlos Grande and Jean Eaglesham
Published: June 4 2000 23:45GMT | Last Updated: June 5 2000 09:41GMT

INTERNET FEARS THAT COMPANIES MAY FACE LIABILITY CLAIMS:

Business leaders have launched a last-minute campaign - against
controversial government proposals on intercepting e-mail - to prevent
companies being exposed to potentially huge liability claims.

The British Chambers of Commerce warns that the measures could leave City
firms liable to civil suits for damages resulting from interception of
documents.

The BCC is pressing for significant changes to the regulation of
investigatory powers bill to protect companies. The Alliance for Electronic
Business, a cross-industry group which includes the Confederation of British
Industry, is also calling for companies to be indemnified against the risk.

The lobbying reflects mounting criticism that the bill is being rushed
through parliament without scrutiny of its long-term impact on internet use
by businesses. Concerns over the bill - now before peers - have come from
the Post Office, Sun Microsystems, Internet Service Providers' Association
and the government's former adviser on e-commerce.

All support the Home Office's attempts to tackle use of electronic
encryption among criminals. But they have criticised wide-ranging powers for
police and government officials.

These require internet service providers to be able to intercept, on behalf
of law enforcement agencies, any electronic messages they carry. They will
also compel businesses or individuals to provide, on request, un-scrambled
electronic documents or the software "keys" used to encode them.

Anyone failing to comply faces up to two years in jail and there is a
similar "tipping off" penalty for revealing that a key request was made.
Individuals claiming they had lost, forgotten or never knew their key would
have to prove this - a reversal of the usual burden of proof.

The BCC believes that banks or law firms that surrender keys used to encrypt
private client documents would be at risk from damages suits for breach of
confidentiality.

It wants law enforcement agencies to be made "clearly liable in civil law"
for damages resulting from misuse of a surrendered key.

The Alliance for Electronic Business is also asking for a government
compensation scheme for internet service providers against similar claims.

Chris Humphries, director-general of the BCC, said: "We are passing this
legislation in London, where the financial services sector is crucial to the
economy, as is the whole issue of trust between banks and clients.

"If we don't amend the bill to avoid exposing UK companies and their clients
to risk, other countries will use this as a marketing ploy to lure business
away