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Privacy Rights on the Internet: Self-Regulation or Government Regulation?

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  • Bowie, Norman E.
  • Jamal, Karim

Abstract

Consumer surveys indicate that concerns about privacy are a principal factor discouraging consumers from shopping online. The key public policy issue regarding privacy is whether the US should follow its current self-regulation course (where the FTC encourages websites to obtain private “privacy web-seals”), or whether a European style formal legal regulation approach should be adopted in the US. We conclude that the use of assurance seals has worked reasonably well and websites should be free to decide whether they have a privacy seal or not. Given the narrow scope and the wide variety among these seals, we do argue that the seals should commit themselves to the key features of a good privacy policy and that an opt-in provision be required. We believe that insufficient evidence exists to propose formal Government mandated Internet privacy regulation.

Suggested Citation

  • Bowie, Norman E. & Jamal, Karim, 2006. "Privacy Rights on the Internet: Self-Regulation or Government Regulation?," Business Ethics Quarterly, Cambridge University Press, vol. 16(3), pages 323-342, July.
    • Handle: RePEc:cup:buetqu:v:16:y:2006:i:03:p:323-342_01
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    Citations

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    Cited by:

    1. Grosso, Monica & Castaldo, Sandro & Li, Hua (Ariel) & Larivière, Bart, 2020. "What Information Do Shoppers Share? The Effect of Personnel-, Retailer-, and Country-Trust on Willingness to Share Information," Journal of Retailing, Elsevier, vol. 96(4), pages 524-547.
    2. Anna M. Turri & Ronn J. Smith & Steven W. Kopp, 2017. "Privacy and RFID Technology: A Review of Regulatory Efforts," Journal of Consumer Affairs, Wiley Blackwell, vol. 51(2), pages 329-354, July.
    3. Kelly D. Martin & Patrick E. Murphy, 2017. "The role of data privacy in marketing," Journal of the Academy of Marketing Science, Springer, vol. 45(2), pages 135-155, March.
    4. Morlok, Tina & Matt, Christian & Hess, Thomas, 2017. "Privatheitsforschung in den Wirtschaftswissenschaften: Entwicklung, Stand und Perspektiven," Working Papers 1/2017, University of Munich, Munich School of Management, Institute for Information Systems and New Media.
    5. Dominik Aaken & Andreas Ostermaier & Arnold Picot, 2014. "Privacy and Freedom: An Economic (Re-)Evaluation of Privacy," Kyklos, Wiley Blackwell, vol. 67(2), pages 133-155, May.
    6. Inman, J. Jeffrey & Nikolova, Hristina, 2017. "Shopper-Facing Retail Technology: A Retailer Adoption Decision Framework Incorporating Shopper Attitudes and Privacy Concerns," Journal of Retailing, Elsevier, vol. 93(1), pages 7-28.
    7. Ivan Bozhikin & Nikolay Dentchev, 2018. "Discovering a Wilderness of Regulatory Mechanisms for Corporate Social Responsibility: Literature Review," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 145-174, June.
    8. Diana Walsh & James M. Parisi & Katia Passerini, 2017. "Privacy as a right or as a commodity in the online world: the limits of regulatory reform and self-regulation," Electronic Commerce Research, Springer, vol. 17(2), pages 185-203, June.
    9. Wei Zhou & Selwyn Piramuthu, 2015. "Information Relevance Model of Customized Privacy for IoT," Journal of Business Ethics, Springer, vol. 131(1), pages 19-30, September.
    10. Pan Liu & Shu-ping Yi, 2018. "Investment decision-making and coordination of a three-stage supply chain considering Data Company in the Big Data era," Annals of Operations Research, Springer, vol. 270(1), pages 255-271, November.
    11. Kirsten Martin, 2016. "Understanding Privacy Online: Development of a Social Contract Approach to Privacy," Journal of Business Ethics, Springer, vol. 137(3), pages 551-569, September.

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