AFFIRMATIVE-CONSUMER/INTERNET-SIGNIFICANCE 357

PRIVACY PROBLEMS ARE A THREAT TO A PROSPEROUS INTERNET

CONSUMER CONCERN OVER PRIVACY IS THE BIGGEST BARRIER TO INCREASE GROWTH OF THE NET

Charles Sykes, Senior Fellow at the Wisconsin Policy Institute THE END OF PRIVACY, 1999, EE2001-JGM,p.61-2

But a multibillion-dollar industry also depends on assuring consumers that their privacy will be respected and protected. Concern over privacy is perhaps the single greatest barrier the Net must overcome before it can achieve its growth potential. A 1998 Georgia Tech survey found that Internet users rated privacy as the most important issue facing the future of the Net-replacing censorship as the top concern .7 Another major survey Privacy & American Business and Price Waterhouse LLP, found that 81 percent of Net users in general and 79 percent of Net users who buy products and services on the Net are concerned about threats to their personal privacy and strongly support calls for businesses to post notices on their privacy policies. Another Harris survey found that 41 percent of all respondents said that they felt that their privacy had been invaded by a business; 82 percent said that consumers had lost control over how their personal information was used.'

A Business Week/Harris survey found that 78 percent of Web users would use the Web even more if their privacy were guaranteed. Anxiety over the security of the information they provide on-line is by far the most important reason Net users give for not using electronic commerce more often. Sixty-five percent were "very" concerned and another 15 percent "somewhat" concerned with using a credit card to make an on-line purchase.'

This finding would seem to suggest that companies that succeed in establishing their identity and credibility as privacyfriendly could reap huge dividends, as customers who have refrained from buying their products on the Net could come forward.

PRIVACY WILL BE WORTH BILLIONS TO INTERNET COMMERCE

Charles Sykes, Senior Fellow at the Wisconsin Policy Institute, THE END OF PRIVACY, 1999, EE2001 -JGM, p.6-7

The greatest barrier to the growth of commerce on the Internet is not technological. The Net will realize its potential for hypergrowth Only when it resolves concerns over the privacy and the security of information transmitted through cyberspace. Privacy may be worth uncounted billions of dollars.

TWO THIRDS OF ADULTS ARE AFRAID TO SHARE INFORMATION ONLINE

Edward C. Baig, Business Week, April 5, 1999; Pg. 84 TITLE: PRIVACY // acs-VT2001

And though millions of consumers bought gifts on the Web last Christmas, a BUSINESS WEEK/Harris poll last month showed that two-thirds of American adults are ''not willing at all'' to share personal and financial information about themselves online in return for more targeted advertising.

PRIVACY FEARS STOP 70% FROM USING E-COMERCE

Richard Wolffe, Financial Times (London), July 14, 1999, SECTION: US AND CANADA; Pg. 07 TITLE: FTC blow to online privacy for consumers // acs-EE2001

Privacy fears remain one of the biggest barriers to electronic commerce, as only a quarter of internet users go beyond browsing to purchase goods and services online.

According to a survey by the National Consumers League, 70 per cent of internet users feel uncomfortable about providing personal information to online businesses.

FEARS OF LOST PRIVACY KEEP MILLIONS OF CONSUMERS AWAY FROM E-COMMERCE

CHARLES PILLER, Los Angeles Times, March 20, 2000, SECTION: Business; Part C; Page 1; TITLE: WEB FIRMS HAVE SORRY RECORD ON PUBLIC'S PRIVACY // acs-VT2001

Meanwhile, other surveys show that Web users are growing apoplectic over the sale or disclosure of their personal data to merchants and Web marketers who deluge them with junk e-mail. Millions of potential online shoppers have avoided e-commerce because of fear that vendors will abuse their trust, according to Forrester Research in Cambridge, Mass.

Such attitudes can hardly be surprising, given that egregious violations of online privacy have become commonplace.

PRIVACY CONCERNS STOP CONSUMERS FROM USING E-COMMERCE

Barbara Young, senior vice president of the Financial & Professional Services Group of Shandwick-Minneapolis, Star Tribune (Minneapolis, MN) March 20, 2000, SECTION: BUSINESS; Pg. 3D TITLE: The thundering privacy train; Unless some of the steam is let out of this issue, businesses, consumers and the economy all could be derailed // acs-VT2001

- 70 percent of Internet users say privacy concerns have kept them from shopping online. (NFO Interactive)

- 67 percent of online shoppers are uncomfortable giving out personal information. (Forrester)

- 57 percent of consumers decided not to use or purchase something from a retail site because they weren't sure how their personal information would be used. (Harris & Associates)