While 88% of online users feel that exchanging information with web sites is the best way for companies to learn about their customers, a new report has found that consumers expect their personal information to be used to customize information, not for intrusive marketing efforts. There is a delicate balance between consumer privacy and the need for businesses to collect information, said Kevin Mabley, Cyber Dialogue’s director of research. He says his findings suggest that online users feel businesses are respecting private information more. In 1999, only half of his survey respondents believed divulging personal information guaranteed junk mail, down from 78% in 1996. Even so, one third of respondents believed having to submit information online was a direct invasion of privacy.
That’s not very surprising. The Cyber Dialogue report follows a white paper from Forrester Research, in which analyst Eric Schmitt predicted that the present regime of privacy self- regulation will fail. While industry groups struggle in vain to reach a consensus on privacy, rising consumer pressure will push lawmakers into action, he wrote. Expect Congress to pass consumer protection laws – the privacy bill of rights – in 12 to 18 months. Schmitt says there are too many privacy stakeholders with too little common ground. As companies become greedier, more and more consumers support government intervention. The impact of legislation will see merchant reputations and revenues suffer, offline data merchants face new scrutiny, privacy brokers emerge and investment in personalization technologies jeopardized.
