OFFICE OF INSPECTOR GENERAL M E M O R A N D U M DATE: April 10, 2001 TO: Chairman FROM: Inspector General SUBJECT: Report on Internet Privacy and Web Cookies The Office of Inspector General (OIG) has completed a Special Review of Internet Privacy and Web Cookies. A copy of our Special Review Report, entitled "Special Review of Internet Privacy and Web Cookies" is attached. This review was required by Section 646 of the "Treasury and General Government Act, 2001" (the Act). Section 646 of the Act states that "Not later than 60 days after the date of enactment of this Act, the Inspector General of each department or agency shall submit to Congress a report that discloses any activity of the applicable department or agency relating to- (1) the collection or review of singular data, or the creation of aggregate lists that include personally identifiable information, about individuals who access any Internet site of the department or agency; and (2) entering into agreements with third parties, including other government agencies, to collect, review, or obtain aggregate lists or singular data containing personally identifiable information relating to any individual's access or viewing habits." Following passage of this legislation, representatives of the Department of Defense Office of Inspector General (DOD IG) met with congressional staff to obtain an understanding of the intent of Section 646 and to discuss expectations regarding the parameters of the review and individual reports. Based on these discussions, the DOD IG prepared and distributed a list of agreed upon questions relating to Internet Privacy and Web Cookies. A listing of the agreed upon questions is included as Appendix 1 to our Special Review Report. The objectives of this Special Review were to evaluate Commission practices related to Internet Privacy and Web Cookies and to provide a report to Congress on these practices. Specific objectives of the review were to examine: 1) the purpose and use of cookies on FCC web pages, 2) the use of other Internet information collection devices, such as web bugs, 3) what categories of information are collected on the FCC web site, 4) what personal information is collected when people e-mail or submit questions to the agency, including how this information is protected, and 5) the distribution of personally identifiable information to any party outside of government for any purpose. The scope of our review was limited to obtaining answers to the five questions that resulted from the discussions between the DOD IG and the congressional staff and performing limited testing to verify the accuracy of Commission responses. In a response to the draft report, the Chief Information Officer (CIO) stated that "the report provides a comprehensive response to the questions asked during your review." The CIO suggested some minor edits, all of which we have incorporated into our report. We have included a copy of the response in its entirety as Appendix 2 to this report. If you have any questions, please contact Thomas Bennett, Assistant Inspector General for Audits, at (202) 418-0477. H. Walker Feaster III Attachment cc: Chief of Staff Managing Director Director, Office of Media Relations Chief Information Officer AMD-PERM