Business Ethics
Handout
Lecture No. 44
Going online and taking advantage of what the Internet has to offer may require
that you disclose personal information. Whether you're new to the Net, or
consider yourself savvy in the ways of the Web, you may have concerns about
how personal information is collected, what choices you have about how it is
used and shared, and under what circumstances you can access it.
Many of the creators of Consumer Privacy Guide believe that to assure the
privacy of their personal information, consumers must have the protection
provided by basic law. Law would provide Internet users with basic expectations
about Web sites' responsibilities for protecting the privacy of the personal
information they collect. We continue to work toward this goal. But whether
information in the online world is protected by law or not, consumers need
information and tools to take charge of their privacy.
Privacy Guide gives you useful tips for protecting your privacy and helps you take
control of the way your information is used. It attempts to answer your questions,
in consumer friendly, practical terms, about what you can do to assure that
information that you choose to share with companies is used in ways you believe
are appropriate. This site will explain terms used on the Internet that may be
unfamiliar to you, provide "how-to" guides to understanding privacy resources
and technologies, and point you toward other helpful resources.
Consumer Privacy
Advances in technology have created the potential for serious harm to
consumers' privacy. Financial institutions, credit bureaus, etc., maintain detailed
files on consumers, including information about their economic activity and
personal information (such as marriage, employment, addresses, and other
information). Though these files are used as an important deciding factor in
granting loans, credit cards, and jobs, a recent study found errors in 43% of
credit reports.
The individual's obvious right to privacy, both physical and psychological, is
important. Psychological privacy is privacy with respect to a person's inner life.
This includes the person's thoughts and plans, personal beliefs and values,
feelings, and wants. These inner aspects of a person are so intimately connected
with the person that to invade them is almost an invasion of the very person.
Physical privacy is privacy with respect to a person's physical activities.
It must be balanced, however, with the rights and needs of others. Banks must
know something about the credit history of those to whom they are lending
money, for example. Since consumers benefit from the banking system, they
also benefit from their right to privacy being balanced against the banks' right to
know their personal information.
To balance these two factors, the following factors are crucial:
1. Relevance - Databases should contain only information directly relevant
to the purpose for which it is collected.
2. Informing - Consumers should be informed that information is being
collected and told what the purpose of its collection is.
3. Consent - Businesses should collect information only if consumers
consent to provide it.
4. Accuracy - Agencies must ensure that the information is up to date and
otherwise accurate, quickly correcting any errors.
5. Purpose - The purpose for which the information is collected must be
legitimate, resulting in benefits generally enjoyed by those who are having
the information gathered from them.
6. Recipients and Security - Agencies must ensure that the information is
secure and not available to unintended users or sold to others without the
individual's consent.
Privacy is the number one concern of Internet users; it is also the top reason why
non-users still avoid the Internet. Survey after survey indicates mounting
concern. While privacy faces threats from both private and government
intrusions, the existing motley patchwork of privacy laws and practices fails to
provide comprehensive protection. Instead, it causes confusion that fuels a
sense of distrust and skepticism, limiting realization of the Internet's potential.
A unique combination of tools -- legal, technical, and self-regulatory -- is being
designed to address the privacy concerns of Internet users. Top-priority
objectives include setting limits on government access to personal information,
ensuring that new information and communication technologies are designed in
ways that protect rather than diminish privacy, and developing appropriate
federal legislation to set baseline standards for consumer privacy. This guide is
intended to educate Internet users about online privacy, and offer practical
suggestions and policy recommendations.
