E-commerce Data Privacy and Security - Literature review Example

Regulation from FTC Federal Trade Commission (FTC) is examining issues related to online privacy since 1995. The commission believes on the stability factors, as it will not only benefit web users but also businesses. This will be achieved by increasing confidence in the web users who are the core players of the online marketplace. Every website supporting electronic commerce must state a comprehensive privacy policy, in order to achieve customer confidence. A study demonstrated that websites for 33 out of 100 largest cities do not have a privacy policy statement (Schuele 2005). Likewise, they were violating laws and regulations because they were collecting personal data. However, in 2001, most popular commercial website, collecting data from the customers, have clearly mentioned privacy policy statements on their websites (Schuele 2005). Moreover, some websites out of these most popular commercial sites have not published a complete privacy policy (Schuele 2005). Emphasizing on Privacy One more study shows that online companies emphasize and focus more on online privacy policy rather than any other aspect. Even online security is considered as the second option. Moreover, the study also concluded that online customers are more worried about their privacy rather than online threats, as they are considered to be in control. In addition, the study also demonstrated a comparison between the two decades i.e. 1999-2001 and 2005-2007 which highlighted the factors that are mentioned previously (Parayitam, Desai et al. 2008). Focusing on Customer Demands However, study concluded one interesting factor i.e. the rankings and ratings of policies created for Internet continues to focus on demands of the web users. Moreover, consumer privacy continues to be on top in both the decades (Parayitam, Desai et al. 2008). The amplified awareness by the contributors i.e. legislators and advocates shows interest level is comparatively high. Sugar Coating Privacy Policy Clauses It is very common for a web user seeking for a privacy policy will only able to read some pages mentioned in terms of points, applauses etc. In order to enhance customer experience with privacy policies, there must be an interactive medium via which customer can get awareness. Literature related to serious implication was also found, For instance, organizations construct the structure of sentences in a way that suits their legal rights. A study conducted by (Pollach 2007) shows that the structure of sentences in a privacy policy related to a typical online shopping website are sugarcoating data handling practices. They are foregrounding optimistic facets and at the same time back-grounding privacy incursions. Approach From Corporate Organizations A study conducted by (Markel 2005). He concluded that corporate organizations gather personal information from their users on four core factors stated below: To provide value added services to special customers. For instance, history of customers reflects high profile of purchasing or selling products via the site. Moreover, these websites also provide forms, in order to register a customer so that he or she can access ‘only members’ portion of the website that may include special discounts and offers. Organizations also customize website contents and design according to the type of customer, in order to modify web experience. The customization is carried out as per customer’s interest that is extracted from the past history of buying and selling products. Moreover, in order to buy any product from the website, corporate organizations require shipping and billing information in order to sell the product to the web user. Corporate organization also trade customer information to third parties. This business activity is carried out to strengthen business relationships. The information can only be used for online marketing and advertisement purposes. Moreover, corporate organizations can also sell personal information of their customers to other companies via intermediaries or directly to them. Dividing Privacy Policy in Two Domains (Smith 2005) divides Internet privacy in to two domains and describes it as “Internet privacy issues generally encompass two types of concerns. One is the collection of personally identifiable information (PII) by website operators from visitors to government and commercial websites, or by software that is surreptitiously installed on a user’s computer (“spyware”) and transmits the information to someone else. The other is the monitoring of electronic mail and Web usage by the government or law enforcement officials, employers, or email service providers.”In the context of online privacy “One aspect of the Internet (“online”) privacy debate focuses on whether industry self-regulation or legislation is the best route to assure consumer privacy protection.In particular, consumers appear concerned about the extent to which website operators collect “personally identifiable information” Five Factors for Defining a Policy Furthermore, one more study concluded five factors that must be met before defining a privacy policy for a particular e-commerce based site. (States 2010) states them as: What information will be collected? The website must specify the kind of information that will be collected from the user. For example, home address, email address, or telephone number etc. What are the method of colleting this information? Define the procedures of collecting personal data to the customers. No matter how the company collects personal data, it must be disclosed in the privacy statement. How to utilize this information? If the personal information is disclosed or shared with third parties, it has to be mentioned in the privacy statement including the purpose of selling of sharing data with other parties. What level of access does the customer? Customers must be given access to certain extent of changing their personal information on the site. How to secure this personal information? Privacy policy must specify how the customer data is protected. Moreover, violating any laws related to online customer privacy will result in legal actions against the organization. Moreover, organization must make sure to regularly regulate privacy policy and inform to the customers. References SCHUELE, K., 2005. Privacy Policy Statements on Municipal Websites. Journal of Government Financial Management, 54(2), pp. 20-29. PARAYITAM, S., DESAI, K.J. and DESAI, M.J., 2008. E-Commerce Policies, Customer Privacy and Customer Confidence. Vilakshan: The XIMB Journal of Management, 5(2), pp. 45-58. POLLACH, I., 2007. What's Wrong with Online Privacy Policies? Communications of the ACM, 50(9), pp. 103-108. MARKEL, M., 2005. The Rhetoric of Misdirection in Corporate Privacy-Policy Statements. Technical Communication Quarterly, 14(2), pp. 197-214. SMITH, M.S., 2005. Internet Privacy: Overview and Pending Legislation: RL31408. Congressional Research Service: Report, , pp. 1-19. STATES, K., 2010. Five questions to answer when setting your Web privacy policy. Inside Tucson Business, 20(5), pp. 13. Read More