Internet Privacy

Paper Summary:

This paper explains that online businesses, consumer advocates and government regulators have very different views about the proper balance between industry self-regulation and government regulation to protect online consumers from unfair and abusive business practices. The author points out that, if companies do not respond, not only will business stand in danger of being over-regulated by the government but also consumers may not trust sites and withdraw their business. The paper relates that the suggested plan would not limit online companies but require free and fair disclosure of Internet privacy policies; however, more regulation may be necessary as social security numbers, student records, medical records, securities investments and real estate transactions become available on the web.

From the Paper:

"The FTC survey also found that these sites provide only limited notice to consumers and protection of the information that these sites collect. Furthermore, other information about consumers was collected by websites, or by third-party network advertisers, through the use of devices like "cookies" or "Web bugs." A "cookie" is a text file placed on a consumer's computer by a website (or third party network advertiser) that provides information back to the server which placed it. A "Web bug" is a hidden method of monitoring consumer activity on the Internet. This process of collecting this kind of information by network advertisers is called online profiling. (Ries, 2001) If the first solicited form of behavior, through demanding consumers register with sites, could be compared to in-store surveys, cookies and web bugs are insidiously similar to having a store employee watch one's buying behavior on a security camera-or have employees follow you throughout the mall, to see what competitor's stores you were apt to survey and buy from!"

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