Computer services buy personal data

PUBLIC ACCESS

December 30, 1991|By New York Times News Service

As more government records are computerized -- from Texas bankruptcy filings to New York drivers' licenses to state voter registration lists -- companies are eagerly buying access to the data and reselling it over computer services.

The companies, which range from tiny specialized concerns to big information mills such as the Dun & Bradstreet Corp. and Prentice-Hall, say they are finding increasing demand from banks, law firms, marketers, private investigators and journalists.

"It's evolved to the point now that it's so inexpensive to redistribute data that public data has in effect become a commodity with very low overhead," said Joseph W. Duncan, the chief economist at Dun & Bradstreet.

But in the view of some experts on privacy issues, making a commodity of public data infringes the rights of individual

citizens.

One of the fastest-growing companies, Information America Inc., based in Atlanta, offers 500 categories of data, including corporate and limited partnership records from 25 states, real estate records from 16 states, and bankruptcy records from around the country.

Information America, which was founded in 1982, charges $15 to $95 for each search, depending on the material. The company, which recently made an initial public stock offering in the over-the-counter market, had revenues of $14 million in 1990.

As such companies cast their nets wider, they are for the first time making public data easily accessible.

Anyone with a PC can subscribe to an information service and probably learn something about nearly anyone in the country who has had contact with a government agency or court in the last decade. Most subscribers use the information to evaluate business opportunities, find customers, conduct background checks or support other types of research.

The industry's expansion has drawn the information-service providers into a debate over the possible misuse of government records. Privacy advocates say many people do not realize that much of the information they routinely provide government offices is being sold for an array of uses.

The companies that sell the information respond by saying they are simply providing easier access to information that has always been available to the public.

The new services have proved a boon to many businesses. Before, companies needing access to public records had to hire workers, sometimes in faraway states, to search by hand through paper documents. Now, they can use computers linked by telephone lines to peruse such records.

In most cases, subscribers pay a monthly fee of between $50 and $200 to join an information service, plus charges of $1 to $100 for each search.

For governments, selling data can provide extra revenue in times of tight budgets. The New York State Department of Motor Vehicles earned $17 million last year from individuals and businesses using its computers to examine drivers' license records, a spokesman said.

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