Papacharissi, Zizi, Jan Fernback

Online Privacy and Consumer Protection: An analysis of portal privacy statements

Abstract

The advent of information technologies has raised public concern regarding privacy, as documented by the results of several surveys. While several European Union member countries must follow strict and specific regulations that protect consumer privacy, the United States has followed a privacy policy of self-regulation; thus, individual companies themselves devise formulas for ensuring customer privacy. Such formulas do not always protect customer interests as much as they serve as legal safeguards for the companies involved. In response to public concern and consumer advocacy efforts, online companies are now posting privacy statements on their sites. Although extensive, these privacy statements seldom provide explicit reassurance that consumer information will be kept confidential and will not be exploited. Despite the existence of independent privacy evaluators like TrustE, these statements frequently outline how companies intend to use private customer information, so that in the event of consumer complaints, the companies cannot be held responsible. This research examines these privacy statements to determine their overall utility. Do these statements guarantee consumer privacy rights or do they simply protect companies who exploit these rights? We focus on topics covered, format, the degree of user-friendliness, the language used, the extent of privacy protection provided, and the legal implications for all parties involved. The project is an analysis of a randomly drawn sample of 100 statements, using content analysis and CATPAC software to identify specific word clusters. Discussion evaluates the overall utility of online privacy statements and suggests recommendations for the effective protection of consumer privacy rights.