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Online Privacy Issues
Abstract
Businesses need to understand privacy conditions and implications to ensure that they are in compliance with legal constraints and do not step on consumers’ rights for privacy. Personal identifiable information (PII) and data can have innate importance to an organization. Some organizations view certain privacy features as essential components of their product or services; for example, profile data is often used to tailor products specifically for their customers’ likes and needs. PII can also be used for less-honorable endeavors such as identity theft, phishing, political sabotage, character annihilation, spamming, and stalking. One of the core issues of privacy is: Who actually owns the data, the holder of the data, or the subject (persons) of the data? The answer depends on many criteria: the users’ perspective, the environment that privacy is addressed, and how the data are collected and used. Privacy issues arise because nearly every activity on the Internet leaves traces somewhere. This audit trail has caused many people to be concerned that this data may be inappropriately used. The paradox is that many businesses are also concerned for a different reason. In this age of legislation and litigation, a “minor” misstep or software glitch could easily put businesses in a position of extreme jeopardy. A data breach at T.J. Maxx that allowed hackers to download over 45 million credit/debit card numbers could literally bankrupt the organization. The damage and fines could easily total more than $4.5 billion; some have the figure as high as $8 billion (Ou, 2007). It is important to state that the governments’ approach to the protection of personal privacy is neither equal nor universal. Some localities extend protection much further than others. In 1972, California amended its constitution to specifically include the construct of “a resident’s inalienable right to privacy.” Within the United States, court decisions dealing with privacy have fairly closely upheld two principles (Freedman, 1987): 1. The right to privacy is NOT an absolute. An individual’s privacy has to be tempered with the needs of society; and 2. The public’s right to know is superior to the individual’s right of privacy. However, some large communities were very slow in becoming involved; Japan did not pass its major protection law (“the Act on the Protection of Personal Information”) to protect consumers and to regulate business until 2005 (Yamazaki, 2005).
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