THE AMERIAN CIVIL LIBERTIES UNION (ACLU) VIGOROUSLY CONTENDS THAT GOVERNMENT COMPILATION OF FILES ON ITS CITIZENS POSES A THREAT TO THE RIGHT OF PRIVACY. ACLU CONCEDES THAT COURT DECISIONS HAVE FAILED TO CONFIRM THE FULL IMPLICATIONS OF THE RIGHT OF PRIVACY SUGGESTED IN GRISWOLD V. CONNECTICUT (1965), AS EVIDENCED BY THE U.S. SUPREME COURT'S DECISION IN LAIRD V. TATUM (1972) THAT THE EXISTENCE OF GOVERNMENT FILES WAS NOT UNCONSTITUTIONAL. CURRENTLY, SOME ABUSE OF THE FILES MUST BE SHOWN BY A PLAINTIFF, AS IN CASES WHEN OFFICIALS DISCLOSE TO TELEVISION STATIONS INFORMATION OBTAINED BY SURVEILLANCE. THE GROWING CAPACITY OF COMPUTERS AND THEIR ABILITY TO STORE, COORDINATE, AND TRANSMIT INFORMATION HAVE INCREASED THE DANGERS TO THE PRIVACY OF ORDINARY CITIZENS. THE PRIVACY ACT OF 1974 PROVIDES FOR INDIVIDUAL SAFEGUARDS AGAINST THE INVASION OF PRIVACY BY FEDERAL AGENCIES, BUT THESE SAFEGUARDS DID NOT PREVENT THE BELL TELEPHONE SYSTEM FROM FURNISHING FEDERAL AGENCIES WITH BILLING RECORDS OF OVER 20,000 CUSTOMERS IN 1976. THE PRINCIPAL USERS OF COMMERCIAL DATA ARE THE FBI, THE CENTRAL INTELLIGENCE AGENCY, AND THE INTERNAL REVENUE SERVICE. POLICE RECORDS OF ARRESTS AND DETENTIONS WITHOUT CONVICTION ARE FREQUENTLY DISTRIBUTED, WITH CITIZENS' FINGERPRINTS AND PICTURES, TO VARIOUS AGENCIES. TO REDUCE THE DANGERS TO THE RIGHT OF PRIVACY, USE OF DATA BANKS SHOULD BE RESTRICTED TO CLEARLY LEGITIMATE PURPOSES, INFORMATION SHOULD NOT BE DISSEMINATED TO ANYONE OUTSIDE THE SYSTEM AND SHOULD BE REGULARLY EXPUNGED UNLESS NEEDED. FOOTNOTES AND REFERENCES ARE PROVIDED. (TWK)