Federal Trade Commission, 2000 CDT's "A First Test: The Candidates and Their Privacy Policies", 1999 CDT's "Behind the Numbers: Privacy Practices on the Web", 1999 Georgetown Business School, 1999 Business Week Survey 1999 AT&T Research 1999 Privacy & American Business Poll 1998 Business Week Poll 1998 Georgia Institute of Technology 1998 FamilyPC User Internet Study 1998 CDT's Survey 1997  Graphs Cyber Dialogue 1997 Truste/Boston Consulting Group 1997 Narrowline 1997

A 1999 Business Week / Harris poll confirmed that Americans care deeply about their privacy and that fear and mistrust regarding the lack of online privacy keep many would-be-users off the Internet. The poll, published in the March 16, 1999 issue of Business Week, reveals that almost two-thirds of non-Internet users would be more likely to use the Net if the privacy of their "personal information and communications were protected."

Recent survey data demonstrate that 92% of consumers are concerned (67% "very concerned") about the misuse of their personal information online. Seventy-six percent of consumers who generally do not worry about the misuse of their personal information in the off-line environment fear privacy intrusions on the Internet.

The Business Week / Harris poll indicates that privacy is the number one reason why individuals choose to stay off the Internet; users ranked their privacy fears significantly ahead of considerations regarding cost, concerns with complicated technology, and dislike of unsolicited commercial email.

Other recent surveys confirm that consumers who are most concerned about Internet privacy risks are the least likely to engage in online commerce. Survey data show that 57% of Internet users have decided not to use a service or purchase a product from a Web site because they lacked knowledge or confidence about the site's use of their personal information. One study estimates that privacy concerns may have resulted in as much as $2.8 billion in lost online retail sales in 1999. Another suggests potential losses of up to $18 billion by 2002 (compared to a projected total of $40 billion in online sales), if consumer privacy concerns are not adequately addressed.

The rising tide of privacy concern was further evident from the Business Week / Harris poll respondents' attitudes toward privacy regulation and enforcement: over half of those polled indicated that government should regulate the use and collection of personal information on the Internet. Fifteen percent supported voluntary industry self-regulation.

In a May 2000 study conducted by the Federal Trade Commission, 82% of respondents agreed that government should regulate online companies' use of personal information.

Online Privacy Policies

Survey data show that an overwhelming majority of online users believe that it is "absolutely essential" or "very important" for Web sites to display privacy policies that explain how personal data is used before consumers provide information or make purchases.

In another study, 92% percent of respondents indicated that they would be uncomfortable (67% "not at all comfortable") if a Web site shared their information with other organizations. An overwhelming majority of consumers --88%--want sites to ask permission whenever they share personal information with third parties.

Ninety-two percent of respondents from online households have stated that they do not trust online companies to keep their personal information confidential; 64% have indicated that they lack trust in data practices even of those sites that post privacy policies.

The Federal Trade Commission, in its May 2000 " Privacy Online: Fair Information Practices in the Electronic Marketplece " report, found that while almost 90% of Web sites surveyed had privacy policies, only roughly 20% of all commercial sites and 42% of the most popular sites included the Fair Information Practices: notice, choice, access and security. The May 1999 Internet Privacy Policy Survey of the Georgetown Business School showed that, while privacy has become more of a concern to companies on the Net, only 9.5% of Web sites had an adequate privacy policy that addressed the important issues of notice, choice, access, security and had contact information for the site.

Only 41% of all sites and 60% of the most popular sites satisfied the principles of notice and choice.

In its September 1999 study entitled " A First Test: The Candidates and Their Privacy Policies ", CDT found that, while presidential campaign Web sites were asking for detailed personal information from volunteers and donors, most of the major candidates were not telling visitors what happened to this information. In its July 1999 report, " Behind the Numbers: Privacy Practices on the Web", CDT concludes that Fair Information Practices continue to be the exception rather than the rule on the World Wide Web.

Financial Privacy

The Business Week / Harris poll indicates that 65% of online users are "very," and 15% "somewhat," concerned regarding the disclosure of credit card numbers to make online purchases. Fourteen percent of registered voters in a recent poll published by the National Journal cited protection of financial records as their top priority for Congress in the year 2000.

CDT Privacy Survey Graphs

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Chapter One: Getting Started