Online Consumer Privacy

An examination of the Web sites hosted by ninety-seven large hotel companies indicates that while sites frequently include statements outlining what data are being collected and how they are being used, none comply with all legislative requirements, in particular with regard to onward transfer, access to the data, and whether consumers have a choice in how their information is used.

Abstract

Technology gives Web site hosts a heretofore unprecedented ability to collect detailed information about customers who visit their sites and to use that information to customize subsequent interactions. Although data collection on this level can be a valuable business practice, such personalization comes at a price—a threat to personal privacy. Two approaches to privacy protection exist—self-regulation (based on government guidelines) and outright legislative protection. While the United States generally favors self-regulation, the European Community has taken the more restrictive legislative approach, which extends to all who wish to use European customer data. An examination of the Web sites hosted by ninety-seven large hotel companies indicates that while sites frequently include statements outlining what data are being collected and how they are being used, none comply with all legislative requirements, in particular with regard to onward transfer, access to the data, and whether consumers have a choice in how their information is used.