Protecting Privacy Online: Is Self-Regulation Working?

The author assesses the extent to which 361 consumer-oriented commercial Web sites post disclosures that describe their information practices and whether these disclosures reflect fair information practices. Although approximately 67% of the sites sampled post a privacy disclosure, only 14% of these disclosures constitute a comprehensive privacy policy. The study was initiated by the private sector as a progress report to the Federal Trade Commission (FTC) and is one in a series of efforts designed to assess whether consumer privacy can be protected through industry self-regulation or whether legislation is required. Although the FTC does not recommend legislation at this time, the study suggests that an effective self-regulatory regime for consumer privacy online has yet to emerge.