Privacy and security are two key reasons consumers are leery of online shopping and buying. A recent Jupiter Research poll reported that 70 percent of online consumers are concerned about threats to their personal privacy on the Internet.
Even more telling, 53 percent have stopped shopping a website or forgone an online purchase because of privacy concerns. Industry analysts estimate that low consumer confidence in privacy and security resulted in lost sales of $24.5 billion in 2006.
The privacy and security concerns of online consumers are related to the cookies described in the text and how those cookies can be used or misused.
A percolating issue is whether the U.S. government should pass more stringent Internet privacy laws. About 70 percent of online consumers favor such action.
Companies have adopted initiatives to develop their own privacy standards government action.
Do you think that governmental or self-regulation is the best way to deal with issues of privacy and security in the new market space?