NEGATIVE — CONSUMER/INTERNET — SIGNIFICANCE� 390

PEOPLE ARE READY AND WILLING TO GIVE UP PERSONAL INFORMATION AS CONSUMERS

LOSS OF PRIVACY ON THE INTERNET IS A VOLUNTARY RISK

Elvira Cordileone, The Toronto Star, March 23, 2000, TITLE: FORGET PRIVACY, SIGN ON FOR CYBERSPY // acs-VT2001

Let's hear no arguments about privacy and ethics, eh? People who choose to spend time in cyberspace make themselves fair game. Those of us who are smart enough to use the system to our advantage deserve to have the upper hand.

AMERICANS PREFER THE CONVENIENCES OF THE WEB TO KEEPING THE INFORMATION PRIVATE

Hjalma Johnson, chairman and CEO of East Coast Bank Corp., ABA Banking Journal, December, 1999; Pg. 29 TITLE: A privacy challenge // acs-VT2001

Many of us accept that we have to give up some privacy in order to take advantage of the web and e-commerce. To buy a book online, we have to share information about our reading preferences. To apply for a mortgage, we have to provide salary and credit information. To make an online purchase, we're going to have to trust someone with our credit card number. All in the name of convenience.

MANY CITIZENS ARE HAPPY TO TRADE PRIVACY FOR DISCOUNTS AND SPECIAL SERVICES

Neil Munro, The National Journal, MARCH 4, 2000 SECTION: CONGRESS; Pg. 702; TITLE: A Little Privacy, Please // acs-VT2001

Still, this is not a one-sided debate. Many citizens seem happy to trade some of their privacy to vendors for discounts and useful advertising. In the IBM Poll, 65 percent said they believe that most businesses act appropriately, whereas in the NBC-Wall Street Journal Poll, 13 percent said that privacy legislation should be a low priority for Congress.

PEOPLE ARE GLAD TO GIVE PERSONAL INFORMATION AS LONG AS THEY GET SOMETHING IN RETURN

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

When consumers see a big payoff, however, some of them are more than willing to trade their personal information. ''As long as you give people something in return, they're thrilled,'' says Bill Gross, the Pasadena (Calif.) entrepreneur who founded idealab!, an incubator for Internet startups. In February, he unveiled Free-PC Inc. on the premise that people would part with detailed personal information and put up with a constant barrage of ads in exchange for a $ 500 computer. Privacy advocates mocked the proposition as a loser. But within days of announcing registration, the company fielded more than 1.2 million applications.

PEOPLE ARE ANXIOUS TO GIVE UP THEIR PRIVACY FOR FREE STUFF

Jeffrey Rosen, associate professor at the George Washington University Law School, The New York Times April 30, 2000, SECTION: Section 6; Page 46; TITLE: The Eroded Self // acs-EE2001

Moreover, many people seem happy to waive their privacy rights in exchange for free stuff. There is now a cottage industry of companies with names like Free PC, Dash.com and Gator.com that offer their users product discounts, giveaways or even cash in exchange for permission to track, record and profile every move they make, and to bombard them with targeted ads on the basis of their proclivities.

MANY DO NOT MIND BEING TRACKED WHILE ONLINE

The Plain Dealer, October 25, 1999 SECTION: PERSONAL TECH; Pg. 6E TITLE: PRIVACY IN PERIL; THE SAME WEB THAT GIVES YOU ACCESS TO THE WORLD GIVES THE WORLD ACCESS TO YOU // acs-EE2001

For some people, the implications may not be frightening at all. They don't mind that someone could be looking over their shoulder each time they go online.

For others, though, the lack of privacy on the Internet is troubling.

86% OF INTERNET USERS WANT TO BE ABLE TO "TRADE" INFORMATION ABOUT THEMSELVES FOR BENEFITS

The Plain Dealer, October 25, 1999 SECTION: PERSONAL TECH; Pg. 6E TITLE: PRIVACY IN PERIL; THE SAME WEB THAT GIVES YOU ACCESS TO THE WORLD GIVES THE WORLD ACCESS TO YOU // acs-EE2001

Where adults are concerned, though, it appears most online consumers are willing to fend for themselves. A survey by Privacy and American Business, a research firm, found that 86 percent of 460 adult Internet users said they wanted to be able to "trade" personal information with Web sites, as long as they were told how the information was used and were offered benefits in return.

NO ONE REALLY CARES ABOUT DIRECT MARKETING, AND THE EXTENT TO WHICH PEOPLE ASK TO BE EXCLUDED PROVES IT

ABA Banking Journal, March, 1999; Pg. 41 TITLE: Do consumers really care about privacy? // acs-VT2001

Long before the Fair Credit Reporting Act set up an "opt-out" procedure for consumers, the Direct Marketing Association, which includes both telemarketers and direct mailers, operated its Mail Preference Service and its Telephone Preference Service. The purpose of both programs is to enable consumers who don't want to receive direct mail materials or telemarketing calls to have their names put on a special list. DMA members who commit to the programs run that list against marketing lists they plan to use, deleting the names on the consumer preference lists. DMA promotes the program in periodic advertisements and members are supposed to let customers know about the opportunity to opt out.

A DMA spokeswoman says there were 3.3 million people signed up for the mail preference program as of Jan. 1999 and that 2.4 million people were signed up for the phone preference program. The U.S. population over 18 years old, according to the federal Census Bureau, came to 201,096,000 in late 1998.

Do the math and you'll find that only 1.6% of U.S. adults opted out of mailings and only 1.2% opted out of phone lists -- hardly even a handful.

CONSUMERS WILL RECEIVE DISCOUNTS FOR GIVING UP DATA, AND THEY WILL DO IT ROUTINELY

JEFF KUNERTH, The Houston Chronicle, August 22, 1999, SECTION: A; Pg. 16 TITLE: Trust, privacy endangered; Society's advances in technology could threaten way of life // acs-EE2001

Westin predicts that consumers in the 21st century will routinely receive discounts or payments for agreeing to allow a business to reuse their personal data. The trend already has started with companies that give away free personal computers, Internet access and e-mail service to people who fill out a questionnaire and match the company's desired customer profile.

"It used to be that consumer information was like the air and water of the business world: It was free," Westin said. "Now it's more and more a resource you have to pay for - just like oil."