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By Dick Kelsey
Newsbytes
Thursday, May 23, 2002; 2:42 PM

Minnesota Gov. Jesse Ventura signed a bill yesterday that lets Internet users decide whether Internet service providers can share their personal data.

Ventura signed the bill despite opposition from Internet giants like America Online and Yahoo, which say that the law will hamper the fight against cybercrime and impose new liabilities on ISPs.

The law requires ISPs - no matter where they are based - to tell Minnesota consumers when and why they plan to disclose personal information such as which Web sites users have visited, their e-mail or home addresses and their telephone numbers.

ISP contracts also must state in a "conspicuous" way whether customers would have to take action to prevent the information-sharing once they are notified (known as "opt-out"), or if the service provider would need permission from customers to proceed ("opt-in").

Minnesota consumers can sue businesses that violate the law, unless the information is released as part of a legal investigation.

Another part of the bill requires unsolicited e-mail, commonly known as "spam," to be labeled "ADV" for advertisement.

State Sen. Steve Kelley (D), the bill's sponsor, said that the same privacy protections that apply to videotape renters or cable TV subscribers should be extended to Internet users.

He also said that the U.S. Congress was dragging its heels in addressing the topic.

Frank Torres, a spokesman for the Washington-based Consumers Union, said the law is a victory for privacy advocates and becomes their new minimum goal for national legislation.

"We hope that it sends a strong signal to Congress that it's got to act on Internet privacy, to ensure that consumers in all the states have the same level of protection," Torres said.

Any federal law would likley supersede the Minnesota law.

Stewart Baker, an attorney for the U.S. Internet Service Providers Association, warned that ISPs would have problems adapting to different laws in different states, and consumers would bear the cost.

"In general, I think you have to worry about how much regulation you can expect for $21.95 a month," he said.

Torres said the effectiveness of the Minnesota law depends on developing regulations that stress simplicity.

"If you're going online, and then this notice pops up, and they ask you to mail something in, it's not worthwhile," he said. "If you have to click through 15 pages, that's not helpful either."

- The Associated Press contributed to this report.