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WHAT THE POLL NUMBERS ADD UP TO

Can Americans find privacy online? Not yet. According to the accompanying 
Business Week/Harris poll, people consider the Internet less secure and less 
private than other forms of communication. Their fear of loss of security or 
invasion of privacy appears to be a key barrier to using the Internet more or 
at all, and to making online purchases. Another critical finding: People don't 
trust companies to address these problems effectively.

Only a quarter of the 999 adults surveyed between Feb. 16 and Feb. 23 said they 
had personally been a victim of some kind of invasion of privacy--not just 
online. Yet many more fear such invasion, in many forms. Nearly half of 
respondents who go online, ostensibly a communications-savvy group, said they 
were at least somewhat concerned that their telephone conversations would be 
overheard by some other person or organization, while 30% had similar fears 
about letters sent through the U.S. mail.

But people are far more nervous about online communications and transactions. 
Fully 58% of online users said they were concerned that an E-mail sent via the 
Internet could be read by someone else without their consent. Among computer 
users who DON'T go online, the number was much higher--89%.

Similarly, among all respondents, 80% said they would be concerned about the 
security of their personal financial information if they used their credit card 
to buy something online. That's actually the same number who said they were 
concerned about giving their credit-card number to a catalog service rep by 
phone. But the number who said they were "very concerned" about online 
transactions was significantly higher. By contrast, 53% were concerned about 
paying a restaurant bill by credit card.

UNAUTHORIZED USE. Among people who have made purchases online, 81% are 
concerned that the company they bought from or one of its employees could use 
their credit-card information to make purchases improperly. Among people who 
haven't bought anything on the net, the number is 92%. Even more thought their 
credit-card data might be made available, in the course of the transaction, to 
others who might use it without the cardholder's consent.

All this fear appears to dampen the broad use of the Net both as a means of 
communications and as an avenue of commerce. Some 61% of non-Internet users say 
they would be more likely to use the Net if they could be assured that their 
personal information would be kept private; 78% of existing Net users said that 
such assurance would cause them to use the Net more.

Similarly, 87% of online users said they didn't like sharing personal or 
financial information so that online ads could be targeted to their tastes and 
interests. 64% said they were "not willing at all" to give such information--a 
key, arguably, to the success of online commerce. And 59% said they never 
registered at companies' Web sites that requested personal information.

MORE REGS? Posting a privacy policy on a Web site doesn't appear to assuage 
people's fears. Among online users, 15% said a posted privacy policy would 
encourage them "a lot" to purchase products and services; 42% said it would 
encourage them "a little." Yet respondents were wary of such policies: Only 9% 
said they completely trusted companies to follow their posted privacy policies; 
33% said they didn't trust companies at all.

More striking, a majority of respondents don't agree that private groups should 
be left alone to develop their own privacy standards. Rather, 53% say the 
government should pass laws now regarding the collection and use of personal 
information online. Support for such a solution was almost as high among 
computer users (50%), though their support has declined somewhat from a year 
ago.


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