Commerce on the World Wide Web, or e-commerce, is experiencing exponential growth since its internet origins. The United States Department of Commerce reported that online sales tripled from approximately $3 billion in 1997 to approximately $9 billion in 1998 (Federal Trade Commission, 1999).
Privacy protection is an important issue to people using e-commerce and online shopping. Online shopping and e-commerce has been a major internet growth area, with individuals now being able to buy numerous products online including clothing, groceries and computers. The attraction of online shopping is the ease of purchase in enables, with being able to shop at thousands of online stores and pay for purchases without leaving the comfort of home. However, studies in 1999 found that only one-quarter of internet users went beyond browsing for information to purchasing goods and services online (Federal Trade Commission, 1999).
However, there have been many cases of purchases going wrong, with issues from computer problems and poor customer service to being cheated by cybercrooks. Secure website abilities have been created to ensure customers have maximum security and privacy in their online transactions. A secure website uses encryption technology to transfer information from the consumer’s computer to the online merchant’s computer. The encryption scrambles the information, preventing hackers from obtaining it. Only people with legitimate access privileges are able to unscramble the information (Privacy Rights Clearinghouse, 2004).
The web provides a rich source of information on online consumers (Federal Trade Commission, 1999). Web sites collect personal information through registration pages, survey forms, order forms and online contests. This is done through using software in a covert manner that many online consumers are unaware of. Through “cookies� and track software, an internet website can record the comings and goings of a person's website usage without the knowledge or consent of that person. Cookies are a “general mechanism which server side connections can use to both store and retrieve information on the client side of connection� (EPIC, 2004). Through cookies, websites are able to track consumers’ online activities and gather information about their personal interests and preferences.
Consumers a concerned about the privacy of their personal information in the online marketplace (Federal Trade Commission, 1999). 87% of US respondents in a survey of experienced internet users conducted in 1999 stated they were “somewhat or very concerned about threats to their privacy online (Federal Trade Commission, 1999). Consumers are uncomfortable providing personal information online, and are concerned about the measures that are taken by websites to protect their privacy.
A way to ensure privacy when shopping online and surfing the web is to read a companies privacy policy. A privacy policy should describe all information a website gathers, explain why it is gathered, what is done with it, who has access to it and under what circumstances, and describe any control the visitor has over the process (Levine, 2002, p.17). There are also many approved programs such as TRUSTe and BBBonline that set voluntary guidelines for their members in privacy related practices.
E-commerce has many privacy issues that effect people’s usage and satisfaction of it. Issues such as cybertheft, cookies and correct privacy policies can effect the amount of privacy and security a person has whilst shopping online.
===Bibliography===
Electronic Privacy Information Centre ([1] EPIC). (2004) “Cookies�. Retrieved 26 October, 2004, from http://www.epic.org/privacy/internet/cookies/.
Federal Trade Commission (July 1999) Self-regulation and privacy online: A report to Congress. Retrieved 26 October, 2004, from http://www.eff.org/Privacy/199907_ftc_online_privacy_report.html.
Levine, J.R., Everett-Church, R. & Stebben, G. 2002. Internet Privacy for Dummies. New York: Wiley Publishing, Inc. ISBN 0-7645-0846-6
Privacy Rights Clearinghouse. 2004. E-Commerce and You: Online Shopping Tips. Retrieved 9 September, 2004, from http://www.privacyrights.org/fs/fs23-shopping.htm.
Krystie Harman 12:56, 26 Oct 2004 (EST)
Krystie Harman 17:56, 28 Oct 2004 (EST)
