The Ethics Of Data Privacy In An Electronic Marketplace: The Incorporation Of Fair Information Practice Principles Into Privacy Policies

Abstract

Electronic commerce will be pivotal to the economy in the current information age.  With the dawn of electronic commerce, some consumers have become concerned about the disclosure, transfer, and sale of information that businesses have collected about them.  These concerns allegedly are slowing the rate of expansion of electronic commerce, consequently putting the future growth of the New Economy at risk.  This research project is a multiple case study of the incorporation of Fair Information Practice Principles in the privacy policies of three online organizations: Amazon.com, Dell.com, and PrivacyAlliance.org.  While many individuals prefer anonymity, most are willing to give out their personal details in order to receive some service or product.  The majority of consumers take offense when their personal information is mistreated.  However, what is the right way to treat personal information?  What should be the foundation of a good privacy strategy?  How does an organization promote trust in their data practices utilizing a privacy policy notice?  How does the privacy policy disclosure effectively incorporate notice, choice, access, and security—the four key elements of fair information practices?  The purpose of this study was to investigate these questions.  This study focuses on the market for personal information used for advertising and marketing purposes.  This market is affected by most of the regulatory and legislative proposals now under consideration.  While much of the research is focused on electronic information gathered over the Internet, the analysis applies to off-line information as well.  Additionally, recommendations for future research in the areas of data privacy based on information discovered in this project are identified in this paper.