• by September 27, 2000

Reflecting continued widespread consumer concern about online privacy protection, a Responsys.com-sponsored study released yesterday reports that only 36% of marketers participating in this survey believe industry self-regulation of privacy issues by Internet businesses is adequately protecting the rights of online consumers. Not surprisingly, 90% of marketers said that the current system of self-regulation is working for their company, but only 46% said that it is working for the industry in general.

Responsys.com, provider of a platform for online direct marketing, commissioned Millward Brown IntelliQuest, an independent high-tech marketing research firm, to conduct a survey among 352 marketing decision-makers at businesses with an online presence. Respondents, members of the IntelliQuest Technology Panel, completed a web-based survey between August 29 and August 31, 2000.

According to Responsys.com, results of the survey also reveal a "privacy gap" between users' and businesses' views on Internet privacy. The IntelliQuest survey found that a large proportion of businesses - almost half - believe that consumers feel their online privacy rights are being protected, while a recent survey by the Pew Internet & American Life Project found that 84% of Internet users are concerned about Web sites having their personal information.

In addition, the Pew survey found that 79% of Internet users believe their online movements are tracked, and only 54% have ever given personal information to a website, yet only 30% of businesses in the IntelliQuest survey reported collecting personal information.

"The survey results confirm that consumers and businesses alike have little confidence in the current system of industry self-regulation with regard to online privacy," said Anand Jagannathan, president and CEO of Responsys.com. "In order to bridge the privacy gap and keep online commerce on its current growth curve, it is essential that businesses, consumer groups and government work together now to agree on common-sense, effective online privacy standards. Responsys.com plans to take a leadership role in this effort."

Sixty-one percent of marketing decision-makers surveyed believe that government involvement is inevitable, and 64% think that government involvement will ultimately hurt the growth of e-commerce. At the same time, 92% believe consumers would purchase more goods and services online if they felt more confident about Internet privacy protection than they do today.

The IntelliQuest research also determined that, among businesses with an online presence, 51% of respondents have a privacy policy posted on their site. Fifty-four percent of those with a privacy policy have updated that policy in the past six months, the majority "in response to changing industry standards." Larger companies (one hundred-plus employees worldwide) are significantly more likely to have a privacy policy.