Report finds Web credibility gap

By
13 October 2000 03:00 PM
Tags: jupiter, privacy, site, consumer, trust, slack, percent, respondent
Web site operators should "engage in an informed dialogue" with consumers on Internet privacy, or risk traffic declines and revenue losses, according to a study from Jupiter Communications.

Jupiter's "Proactive Online Privacy" survey of online consumers, released at the firm's Online Advertising Forum in New York, claims that a majority of consumers don't trust sites to protect their private data.

Respondents stuck to their conclusion even when the sites display privacy policies, the report states.

Some 64 percent of survey participants told Jupiter they had little faith that site operators wouldn't misuse their private information. What's more, another 27 percent said they do trust sites bearing third-party privacy seals.


"The intense media coverage of the online privacy issue is fueling consumers' fears."
-- Jupiter analyst Michelle Slack

But while many consumers fear for their online privacy, it's not clear exactly what they're afraid of, said Michele Slack, the Jupiter analyst who wrote the report.

"The intense media coverage of the online privacy issue is fueling consumers' fears," and most site operators are missing the opportunity to have their say on the issue, Slack said.

Wait and see
Unless sites clearly articulate how they will protect users' privacy, traffic and revenues will suffer, and new government regulation could follow, she predicted.

"Taking a wait-and-see stance will prove disastrous from both the regulatory and revenue perspectives," according to the report.

However, most consumers taking part in the Jupiter survey did not think new laws are necessary.

Only 14 percent of respondents said they would trust sites more if they were subject to privacy regulations.

Interestingly, some 26 percent of respondents said they trust e-commerce sites more if the companies running them also have an off-line presence. Nine percent said they are more likely to trust sites recommended by family and friends.

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