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Online Privacy and Your Company Zach Evans
Why Is Privacy Important? <ul><li>Collection, enhancement, and aggregation of data are instantaneous </li></ul><ul><li>Inf...
Nine Factors in Deciding to Visit a Web Site Source: Consumer WebWatch 23 36 30 9 The site displays awards and certificate...
Internet Users’ Trust of Organizations Source: Consumer WebWatch
Privacy Survey Results <ul><li>Wall Street Journal  and NBC News </li></ul><ul><ul><li>Individuals were asked to identify ...
Six Factors in Choosing an E-Commerce Site Source: Consumer WebWatch 2 4 18 76 The site’s privacy policy 2 2 14 81 The ema...
Six Factors in Choosing News/Information Sites Source: Consumer WebWatch 10 24 42 22 The financial relationships the site ...
Comparison of Importance Users Place on Various Factors and How Much They View Policies Source: Consumer WebWatch
Economic Impact of Privacy Concerns <ul><li>Report by Forrester Research found that  $15 billion  of projected e-commerce ...
Basis for Privacy Laws <ul><li>No “right of privacy” in the U.S. Constitution </li></ul><ul><li>Does restrict how governme...
Current Federal Privacy Laws <ul><li>Cable Communications Policy Act </li></ul><ul><li>Census Confidentiality Statute </li...
Australian Privacy Amendment Act of 2000 <ul><li>Provides that personal information cannot be collected without the consen...
Australian Privacy Amendment Act Impact <ul><li>U.S. companies with Australian subsidiaries cannot transfer information be...
European Union Directive 95/46/EC <ul><li>Adopted in 1998 and became applicable to U.S. in 2001 </li></ul><ul><li>Users mu...
European Union Directive 95/46/EC Impact <ul><li>U.S. companies must voluntarily abide to ‘Safe Harbor’ provisions negotia...
Making Privacy a Top-Level Issue <ul><li>Posted privacy policies on their Web sites </li></ul><ul><li>Created Chief Privac...
Chief Privacy Officer (CPO) <ul><li>Serve as a liaison between the corporation and consumer </li></ul><ul><li>Often have v...
Guidelines for Online Privacy Policies <ul><li>Adoption and Implementation of a Privacy Policy </li></ul><ul><li>Notice an...
Online Privacy Resources and Certifying Organizations TRUSTe www.truste.org Better Business Bureau www.bbbonline.org
Questions?
Sources <ul><li>A Matter of Trust: What Users Want From Web Sites  : ConsumerWebWatch.com : January 2003 </li></ul><ul><li...
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Online Privacy and Your Company

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Online Privacy and Your Company

  1. 1. Online Privacy and Your Company Zach Evans
  2. 2. Why Is Privacy Important? <ul><li>Collection, enhancement, and aggregation of data are instantaneous </li></ul><ul><li>Information can be collaborated upon across the entire organization </li></ul><ul><li>Expectations of consumers are shifting rapidly: customer’s patience levels are getting shorter and shorter </li></ul><ul><li>Privacy and customer permission are cornerstone to customer trust </li></ul>
  3. 3. Nine Factors in Deciding to Visit a Web Site Source: Consumer WebWatch 23 36 30 9 The site displays awards and certificates from other groups 12 26 41 19 The site displays seals of approval from other groups 11 27 37 24 What businesses and organizations financially support the site 12 22 33 32 Knowing who owns a Web site 4 8 36 50 Being able to find out important facts about a Web site 2 4 28 65 Knowing the site is updated frequently with new information 2 4 25 68 Being able to easily identify the sources of information 1 3 14 80 Being able to trust the information 1 2 16 80 The site is easy to navigate and to find what you want NOT AT ALL IMPORTANT NOT TOO IMPORTANT SOMEWHAT IMPORTANT VERY IMPORTANT
  4. 4. Internet Users’ Trust of Organizations Source: Consumer WebWatch
  5. 5. Privacy Survey Results <ul><li>Wall Street Journal and NBC News </li></ul><ul><ul><li>Individuals were asked to identify the issue(s) that concern them the most about the 21 st century </li></ul></ul><ul><ul><li>29% responded that they were more concerned about threats to personal privacy that other social issues such as overpopulation, war, and global warming </li></ul></ul><ul><li>Business Week </li></ul><ul><ul><li>37% of Internet users would be “a lot” more inclined to purchase on a site that had a privacy policy </li></ul></ul><ul><ul><li>63% of Internet users are very concerned about the use of personal information </li></ul></ul><ul><li>Jupiter Communications </li></ul><ul><ul><li>Privacy/Security was the #1 factor that would convert researchers into buyers </li></ul></ul>
  6. 6. Six Factors in Choosing an E-Commerce Site Source: Consumer WebWatch 2 4 18 76 The site’s privacy policy 2 2 14 81 The email address, street address or telephone number where you can reach the site’s staff about any problems 2 1 8 88 A statement of the site’s policies for returning unwanted items or canceling reservations 1 1 9 89 An explanation of when you can expect delivery of your products or confirmation of your reservations 1 1 4 93 A statement of how the site will use your name, address, credit card number and other personal information you provide 1 0 3 95 A statement of fees that you will be charged for using the site, including shipping costs, transaction fees and handling fees NOT AT ALL IMPORTANT NOT TOO IMPORTANT SOMEWHAT IMPORTANT VERY IMPORTANT
  7. 7. Six Factors in Choosing News/Information Sites Source: Consumer WebWatch 10 24 42 22 The financial relationships the site has with other sites or other businesses 10 22 37 30 A page that lists the editor or people responsible for the content on the site, like the masthead on a print publication 6 13 45 34 A prominently displayed page for corrections and clarifications 7 16 39 36 Email addresses for the editor or people responsible for the content on the site 4 10 25 59 Advertising is clearly labeled as advertising and distinguished from news and information on the site 4 8 22 65 The site’s privacy policy NOT AT ALL IMPORTANT NOT TOO IMPORTANT SOMEWHAT IMPORTANT VERY IMPORTANT
  8. 8. Comparison of Importance Users Place on Various Factors and How Much They View Policies Source: Consumer WebWatch
  9. 9. Economic Impact of Privacy Concerns <ul><li>Report by Forrester Research found that $15 billion of projected e-commerce revenue would be unrealized because of privacy concerns </li></ul>
  10. 10. Basis for Privacy Laws <ul><li>No “right of privacy” in the U.S. Constitution </li></ul><ul><li>Does restrict how government, at all levels, can collect/use personal information </li></ul><ul><li>“ Common law” historically limits intrusive collection of personal information </li></ul><ul><li>Privacy Protection Study Commission (1977) recommended to Congress the following objectives </li></ul><ul><ul><li>Minimize intrusiveness in the lives of individuals </li></ul></ul><ul><ul><li>Maximize fairness in institutional decisions made about individuals </li></ul></ul><ul><ul><li>Provide individuals with legitimate, enforceable expectations of confidentiality </li></ul></ul>
  11. 11. Current Federal Privacy Laws <ul><li>Cable Communications Policy Act </li></ul><ul><li>Census Confidentiality Statute </li></ul><ul><li>Children’s Online Privacy Protection Act of 1998 </li></ul><ul><li>Customer Proprietary Network Information </li></ul><ul><li>Driver’s Privacy Protection Act </li></ul><ul><li>Electronic Communications Privacy Act </li></ul><ul><li>Freedom of Information Act </li></ul><ul><li>Gramm-Leach-Bliley Act </li></ul><ul><li>Privacy Act </li></ul><ul><li>Telephone Consumer Protection Act </li></ul>
  12. 12. Australian Privacy Amendment Act of 2000 <ul><li>Provides that personal information cannot be collected without the consent of person giving it </li></ul><ul><li>Once collected, information must be kept confidential </li></ul><ul><li>Information “cannot be transferred to another country that does not have privacy protection” </li></ul>
  13. 13. Australian Privacy Amendment Act Impact <ul><li>U.S. companies with Australian subsidiaries cannot transfer information between countries because U.S. does not (currently) have privacy protection </li></ul>
  14. 14. European Union Directive 95/46/EC <ul><li>Adopted in 1998 and became applicable to U.S. in 2001 </li></ul><ul><li>Users must ‘unambiguously’ give consent for personal data to be collected after being informed about the purposes of the data collection </li></ul><ul><li>Expressly forbids collection of ‘sensitive data’ such as: racial or ethnic origin, political opinions, religious beliefs, trade union membership, and sexual preference </li></ul><ul><li>Forbids transfer of personal data to a country that does not provide a level of protection similar to its own </li></ul>
  15. 15. European Union Directive 95/46/EC Impact <ul><li>U.S. companies must voluntarily abide to ‘Safe Harbor’ provisions negotiated by U.S. Chamber of Commerce </li></ul><ul><li>Fewer than 75 U.S. companies had signed up for it as of mid-2001 </li></ul><ul><ul><li>Microsoft, Intel, Hewlett Packard, and Procter & Gamble </li></ul></ul>
  16. 16. Making Privacy a Top-Level Issue <ul><li>Posted privacy policies on their Web sites </li></ul><ul><li>Created Chief Privacy Officer (CPO) positions </li></ul><ul><li>Increased employee awareness and training about the issue </li></ul><ul><li>Established self-regulatory initiatives </li></ul><ul><li>Taken other noticeable measures to shore up their privacy policies and practices </li></ul>
  17. 17. Chief Privacy Officer (CPO) <ul><li>Serve as a liaison between the corporation and consumer </li></ul><ul><li>Often have veto power over: </li></ul><ul><ul><li>Product launches </li></ul></ul><ul><ul><li>Marketing campaigns </li></ul></ul><ul><ul><li>Strategic partnerships </li></ul></ul>
  18. 18. Guidelines for Online Privacy Policies <ul><li>Adoption and Implementation of a Privacy Policy </li></ul><ul><li>Notice and Disclosure </li></ul><ul><li>Choice/Consent </li></ul><ul><li>Data Security </li></ul><ul><li>Data Quality and Access </li></ul>
  19. 19. Online Privacy Resources and Certifying Organizations TRUSTe www.truste.org Better Business Bureau www.bbbonline.org
  20. 20. Questions?
  21. 21. Sources <ul><li>A Matter of Trust: What Users Want From Web Sites : ConsumerWebWatch.com : January 2003 </li></ul><ul><li>A Review of Federal and State Privacy Laws : Better Business Bureau : BBBOnline.org </li></ul><ul><li>Global Commerce and The Privacy Clash : The Information Management Journal : January/February 2002 </li></ul><ul><li>Guidelines for Online Privacy Policies : Online Privacy Alliance : PrivacyAlliance.org </li></ul><ul><li>How Does Online Privacy Impact Your Bottom Line? : TRUSTe : Truste.org </li></ul><ul><li>PRIVACY - What Every Manager Should Know : The Information Management Journal : May/June 2002 </li></ul><ul><li>The Ethics of Database Marketing : The Information Management Journal : May/June 2002 </li></ul>

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