|
|
|
|
|
Subject: Sep2000 ECMgt.com:
Privacy Concerns Increase |
|
|
|
|
Dave Steer The three-year-old report still rings true today, but it begs the question: Has the privacy bomb exploded, or does the industry still have time? The Changing of the Tide Kevin O'Connor, CEO of DoubleClick, would be the first one to testify that failing to adequately address consumer privacy concerns led to his company's own privacy bomb. To adequately diffuse it &endash; in the movies, it would be to clip the red wire instead of the black wire &endash; DoubleClick appointed a privacy advisory board and named former New York City Consumer Affairs Commissioner Jules Polonetsky as the company's Chief Privacy Officer. But reverberations of the DoubleClick brouhaha were felt by the entire industry. With snapshot polls in-hand, self-proclaimed advocates generated momentum and ignited the call for legislating a privacy fix. While government's increased vigilance over privacy practices is one result, the DoubleClick case study has had an even more profound effect: The re-prioritization of the privacy issue among commercial Web sites. Simply put, no Web site wants to be next in the firing line. Today, thousands of Web sites are demonstrating a commitment to address privacy concerns by adopting the core principles of Fair Information Practices. The Fair Information Practices are a set of guidelines that direct an organization's use of personally identifiable information. While there are several tenets, the core principles of Fair Information Practices provide users with notice of privacy practices, choice to prevent sharing of personal information, access to profiles to correct inaccuracies, and security mechanisms to protect the data. What's more, industry and government realize that bridging the privacy gap will require them to work together. Perhaps the most visible collaboration of this sort has been the action against Toysmart.com, a company that has filed for bankruptcy, and whose creditors intend to sell the personal information that was gathered on its users. After TRUSTe blew the whistle on Toysmart's intention to go back on its privacy promises, more than 40 state attorneys general and the Federal Trade Commission took steps to prevent the inappropriate sale of customers data. This action has sent a strong signal to consumers that there are structures in place to help them protect their privacy online. Still More to be Done Let's not delude ourselves, though, by believing that we have already succeeded in diffusing the Privacy Bomb. After all, according to a recent report by the Pew Internet & American Life Project, the majority of U.S. Internet users feel their rights are infringed upon by companies that track them online. 86 percent of users prefer an "opt in" policy that would require Web sites to seek permission from users before they disclose personal information. Add to that the fact that, according to a recent Yankelovich Partners study, nearly 80 percent of Web users exit sites that require personal information to proceed into the site. There is still much more to be done, as these data suggest low levels of trust that threaten the continued success of online commerce. First, all Web sites should make Fair Information Practices a central part of their business operations. As site data gathering and dissemination practices become more complex, companies should consider appointing a Chief Privacy Officer to ensure that the entire organization is operating under the same responsible policy. Second, it is important that all Web and product developers understand that architecture is policy. The way companies build products will dictate the amount of control users have over their personal information. To that end, smart companies are soliciting the advice of outside experts before unveiling their new products. Appointing a privacy advisory board can save time, money, and unneeded headaches. Finally, Web sites should communicate their commitment to privacy. Use privacy and security as market differentiators and value-added features. And, if in the course of trying to run your Web site you make a privacy error, accept and admit responsibility for mistakes and solve them quickly. It is embarrassing to have a privacy meltdown; it is even more so if you are caught trying cover it up. While the privacy bomb has yet to explode, it is still ticking. Addressing this issue head on will allow the Internet industry to best diffuse it and will allow your site to effectively build trust with users. What you do with that trust is up to you.
Back to the main
ECMgt.com Page (http://ECMgt.com)
|
| |
|
|
|
|
E-Commerce Resources | E-Commerce Examples | Internet Marketing |
| |
|
|
|
| ECMgt.com is produced by
ECnow.com (http://ecnow.com) |
|
