Information collection that is prohibited, as a condition of acceptance of non-cash payment mechanisms, on the other had seems to be technically allowed as a condition of doing business. However, attempts to do so have met, in the real world, with significant customer resistance. The U.S. Treasury web site has a section on this issue, in response to a question whether it is illegal to not accept cash as payment for goods or services. The very fact that the Treasury Department chose to elucidate this issue on their web site indicates that they believe there is a prevalent perception that there is a legal requirement to accept cash payment without imposing onerous conditions. In any case, whether prompted by misperception of the law or not, main street merchants do not typically ask for personal information as a condition of making a cash sale.
Consumers expect privacy when they enter into purchasing transactions.
A delivery address is required for any physical goods that are ordered, in order for the merchant to be able to deliver the product. On the other hand, orders for goods or services delivered electronically do NOT require such an address. Internet merchants are being subjected to conflicting policy pressures regarding collection and use of personal information. While this pressure in currently only in discussion form, care must be taken that when information practice laws or regulations are passed, they are appropriate to the Internet and are not burdensome, or even impossible, to comply with. A great concern is that Internet merchants will be subjected to laws or regulations that are mutually exclusive so that to comply with one law the merchant must necessarily break another.