E-Business 101, Part 3: Privacy
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One of the distinguishing characteristics of the World Wide Web (the "Web") is interactivity. Visitors don't just read text on a Web site - they interact with it - and as they do the Web site usually gathers information about them. Some personal information is gathered overtly through form's requesting personal information. Studies suggest that over 90% of Web sites aimed at consumers collect at least some personal information and more than 55% collect at least some demographic information. More information is gathered covertly as visitors navigate through the Web.
In this article we focus on privacy issues facing Web site operators. First, the Article will provide an overview of several U.S. laws addressing privacy issues applicable to Web site operators, including both laws specifically directed to electronic communication, Web site operators, etc., and laws, while not so specifically directed, may never-the-less be applicable. Second, the Article will provide recommendations for attorneys advising clients on online privacy issues.
Privacy is an emotional issue for many people. When a Web site's information gathering techniques are understood, a visitor is able to balance his or her desire for privacy against the value of the service provided by the Web site being visited. When the Web site's information gathering techniques are not understood, a visitor cannot make an informed decision and privacy disputes are likely to arise.
Many people are disturbed when the first learn of the level to which their on-line activities have been monitored and feel a sense of loss of control. The information is being gathered because it has commercial value to Web site operators, advertising agencies and others.
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