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17 Chitty's L.J. 90 (1969)
Privacy and Data Bank

handle is hein.journals/chittylj17 and id is 92 raw text is: Privacy and Data Bank
KENNETH CHENG, Ph.D.
The author is Director, Ontario Statistical Centre, Department of Treasury and Economics
of the Province of Ontario.

Introduction
Progress in computer technology has made
it possible to store, manipulate, and retrieve,
a great amount of data in a very short time
at a reasonable cost.
This capability of computer has stimulated
development of many information systems and
data banks. Some of these data banks are for
a specialized or a single purpose, and some
are aimed at broader use or for general
purposes.
Collection of information from different de-
partments and organizations involves many
legal problems, some concerned with authority
to collect, or the power for access to files
of the government and private organizations,
and others regarding the transfer and release
of information to other organizations, indivi-
duals or general public.
Among the legal issues related to data bank,
the invasion of privacy brought forth intense
controversy among congressmen and officials
in Washington, in connection with the establish-
ment of a National Data Centre.
According to Congressman Cornelius E. Gal-
lagher, In my opinion, the particular effect
of the collection and correlation of all this
information in one place, signifies a radically
new kind of threat to the Right of Privacy,
and consequently, a new threat to man's last
dimension of freedom and dignity.
On the other hand, it also can be argued
that the right to privacy should not be left to
disorganized and fractionalized information sys-
tems, but an orderly, coordinated and rational
system founded on a sound legislation must
be set up to ensure privacy.
The threat to privacy through establishment
of a large scale data bank or information sys-

tem, is of considerable importance to each
individual in a democratic society, and the
issue bears equal significance in the U.S.A.,
as well as in Canada.
Since its problems, however, are universal
to some extent for any type of data bank which
involves transfer of files regarding individual
person and organization, and since the willing-
ness to provide information from a person or
an organization is the fundamental require-
ment of a data bank, this paper tries to bring
into focus, some of the concepts which may be
useful for dealing with the problem of invasion
of privacy by data bank.
Privacy and Commercial Data Bank
Development of a data bank is not limited
to government, and a number of commercial
data banks are currently in operation. It is
learned in the U.S.A. that a computerized
data centre is now planned which will report
the credit status of any one of more than 50
million people within ninety seconds. Com-
puterized data storage is now fairly popular
among banks, credit card organizations, life
insurance companies, department stores and
many others. Public institutions also have fol-
lowed the trend, and it is learned that a num-
ber of hospitals and boards of education are
in the process of converting into automatic
data processing.
Computerization of existing files creates little
threat to privacy. The problem begins to bear
significance, however, once the information
exchange takes place between various data
centres, and the data on an individual are
assembled into a single file. Imagine for a
moment that banks got together to exchange
files, next life insurance companies joined the
group, car insurance companies, and then the
computer utility firms handling physician's

90

Chitty's Law Journal

March, 1969