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Business Ethics MGT610

LESSON 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.

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Business Ethics MGT610

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.

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