Anti-Terrorism List and Law Forces Anti-Customer Business

Bad data can lead to bad decisions, and some of the details in this Washington Post story about customers being identified as terrorist suspects. According to the story:

:The lawyers' committee has documented at least a dozen cases in which U.S. customers have had transactions denied or delayed because their names were a partial match with a name on the list, which runs more than 250 pages and includes 3,300 groups and individuals. No more than a handful of people on the list, available online, are U.S. citizens.

Yet anyone who does business with a person or group on the list risks penalties of up to $10 million and 10 to 30 years in prison, a powerful incentive for businesses to comply. The law's scope is so broad and guidance so limited that some businesses would rather deny a transaction than risk criminal penalties, the report finds.

Not only does this present grave concerns for civil liberties, but companies are facing pressure to take actions under the law that can unnecessarily harm relations with customers based on poor information. Another quote from the article:

"'The law is ridiculous,' said Tom Hudson, a lawyer in Hanover, Md., who advises car dealers to use the list to avoid penalties. 'It prohibits anyone from doing business with anyone who's on the list. It does not have a minimum dollar amount. . . . The local deli, if it sells a sandwich to someone whose name appears on the list, has violated the law.'"

Dealing with the problem might mean lobbying for a change in the law.