You will hear more from Steve Cole later about the success of the BBBonline privacy seal program. I believe that government regulation is premature. I favor a self-regulatory model that allows the marketplace to meet consumers demand to protect online privacy while allowing the maturation of the technology tools to give consumers control over their online privacy. Legislation motivated by the passions of an election year could disrupt the development of electronic commerce and place onerous and untenable burdens on businesses. Imagine the compliance costs and barriers to entry that regulation would thrust upon small businesses trying to make a go of it in the new world of electronic commerce.
Consumers are concerned about invasions of their personal privacy and security online.
In a recent Gallop poll, nearly seven in 10 online shoppers are concerned about Web security. Concerns about consumer privacy online are real and unless industry continues to act to protect consumer privacy through self-regulation, there will surely be regulatory action by government. Companies must put privacy protections in place to provide real notice and choice for customers. I would urge every CEO in this country to personally, personally inspect their company' s privacy policies, find out where they stand and get on with it. IBM, Microsoft, Disney, Intel, Procter and Gamble, Novell, and Compaq have voluntarily committed to requiring their advertising partners to post high-quality privacy policies in order to receive advertising monies.