Privacy's Still A Major E-Commerce IssuePrivacy's Still A Major E-Commerce Issue

The prevailing wisdom is that data privacy has taken a backseat to security concerns since Sept. 11, but a new Harris Interactive survey finds that most consumers are still worried about how companies use their personal data. And a huge majority believes that there should be a third-party organization checking that businesses abide by their privacy policies.

The survey, conducted online Nov. 5-11, finds that 75% of consumers are concerned that companies they patronize will provide confidential information to other companies without permission. Seventy percent worry that transactions may not be secure, and 69% believe that hackers could steal their personal data. (Multiple answers were allowed.)

Nearly two of three consumers (62%) say that independent verification of policy adherence would mollify their concerns. Almost 85% say policy certification should be required. Such practices apparently would be good for business: 91% would do more business with companies whose privacy policies were certified. Not surprisingly, 83% would stop doing business with a company if they heard or read that it was misusing customer information.

The national survey of 1,529 adults has a margin of error of plus or minus three percentage points. It was conducted by Harris Interactive, part of Total Research Corp., on behalf of Privacy & American Business, a nonprofit policy think tank, and was sponsored by Ernst & Young and the American Institute of Certified Public Accountants.