This is a background document related to the thematic call on
Electronic Commerce of the IT Programme (15/3/97). This document is only
informative, and is not indicative of directions that should be taken by
proposers when answering the call.
Source of the document: Demos a London Based Think-tank
Date of the document: March 1997
Copyright: none
A report was recently published by Demos, an independent
think-tank based in London, on the development and use of smart cards in the
information society.
General comments
This is a useful all-round introduction to the issue of
smart cards oriented around the policy rather than the technological aspects
of the subject. There is a thorough analysis of the background and relevant
policy issues. The report includes a "programme" of policy recommendations on
the subject which are largely based on a "regulated market" approach. While
the pros and cons of such a type of solution can be debated, the
recommendations are nevertheless a useful starting point for discussion.
Structure of the report
The report starts out by summarising its main
recommendations and follows with a description of the potential and actual
functions and benefits of smart cards. It analyses the current state of usage
of smart cards and likely developments in the market. It discusses the key
issues of cryptography and privacy legislation with reference to recent
British and European initiatives (including the October 1995 European privacy
directive). It then describes the report's policy recommendations in more
detail and finishes with a glossary of terms used. A copy of the contents
pages is attached to this note.
Conclusions
The conclusions of the report are, to some extent,
innovative and controversial. In many cases, they follow a broadly similar
path to that of recent European legislation but go much further than existing
measures. They recommend:
the strengthening of existing data protection laws based
on the principle of express consentby the individual for any
new use of personal data.
the creation of an independent market in data access
services (with separation from companies using personal data enforced by
laws similar in design to those currently in force in, for example, the
banking sector (e.g. Chinese walls)). Such data access companies would allow
individuals to trace the content and usage of personal information held
about them.
the development, by government legislation if necessary,
of multi-functional smart cards with individuals being able to chose
which functions to add on to their smart cards (e.g. health insurance,
telephone card, driving licence).
the promotion of privacy technology (e.g. further
development in cryptography) by governments and industry
rethinking current cryptography legislation to allow
unhindered commercial use of strong cryptography (but with safeguards
based on Trusted Third Party-type agencies holding the keys to such
cryptography systems)
Practical information
"On the Cards" by Perri 6 and Ivan Briscoe
ISBN 1 898309 72 8
Price: £9.95
published by Demos,
9 Bridewell Place
London EC4V 6AP
Tel: (44) 171 353 4479
Fax: (44) 171 353 4481
E-Mail: joanna@demos.demon.co.uk
