In an effort to balance commerce with consumer privacy needs, the Federal Trade Commission (FTC) has relied on fair information principles to guide privacy regulation and industry practice in the United States (FTC 1999b). These principles include notice/awareness, choice/consent, access/participation, security/integrity, and redress/enforcement
(see the following articles in this special issue for more details: Caudill and Murphy 2000; Culnan 2000; Sheehan and Hoy 2000). Despite industry self-regulation efforts, many database marketers are not following fair …show more content…
These results show that less than half the organizations surveyed practice the fair information principles of notice and choice. The lack of adherence to fair information principles has also been found among organizations that use
Web sites to collect personal information. The FTC’s study of 1400 Web sites finds that only 14% post notices or disclosures on Web pages (FTC 1998). Current research on information practices reported on Web sites in the
Georgetown study (Culnan 2000) and retailer Web sites
(Miyazaki and Fernandez 2000) suggests that the disclosure rate has improved. Still, there is much room for improvement, as is evidenced by the FTC report on self-regulation and privacy online, which notes that the Georgetown study finds that only 10% of the 361 organization Web sites practice all four substantive fair information practices of notice, choice, access, and security (FTC 1999b, p. 7).
In addition to the lack of fair information practices followed by database marketers, other privacy issues exist. In particular, the Internet has made it possible for organizations to gather information without the immediate knowledge of consumers (Caudill and Murphy 2000; Sheehan and