1P-23-1213 Privacy and Security Blue Paper

Embed Size (px)

Citation preview

  • 8/13/2019 1P-23-1213 Privacy and Security Blue Paper

    1/164imprint.com

    Pr ivacy and Secur i ty

  • 8/13/2019 1P-23-1213 Privacy and Security Blue Paper

    2/16 2013 4imprint, Inc. All rights reserved

    Privacy and security onl ine:

    What is the corporate impact?

    In June 2013, Edward Snowden fueled the debate on privacy and democracy

    in the digital age. He was called everything from a traitor to a hero when he

    revealed that the National Security Agency (NSA) has been eavesdropping on

    private citizens through cell phones, laptops, Facebook, Skype, chat-rooms andmore. One of the first documents released by Snowden showed that the NSA was

    collecting telephone records from millions of customers of Verizon, one of the

    largest U.S. telecommunications providers.1

    The Snowden affair raises a number of questions pertaining to consumer privacy

    and security rights. NSA officials and other intelligence agencies claim that

    these activities are constitutional and occur under the umbrella of rigorous

    congressional and judicial oversight, and that its essential in order to protect

    the public from terrorist attacks. But civil liberties groups such as the ElectronicFrontier Foundationand the American Civil Liberties Unionwarn that this type

    of surveillance goes beyond what Congress intended and violates constitutional

    rights. At the heart of the issue is whether or not Americans have rights when

    it comes to protecting their personal data. A number of laws and regulations

    pertaining to this are currently being debated that will likely affect how

    corporations collect and maintain consumer data.

    Last year, President Obama introduced the Consumer Privacy Bill of Rightsto

    protect consumer rights online. In the report, the President noted that [never]has privacy been more important than today, in the age of the Internet, the

    World Wide Web and smartphones.2The legislation is designed to give

    consumers a clear understanding of what to expect from companies that handle

    their personal information and defines basic principles for companies that use

    personal data, and now many companies wonder what this means and how it will

    be implemented.

    In the meantime, the Federal Trade Commission (FTC) continues to enforce the

    existing regulations designed to protect consumer rights. As of October 2013,the FTC has brought 47 legal actions against organizations that have violated

    consumers privacy rights, or misled them by failing to maintain security for

    sensitive consumer information. Most of the cases violated the Federal Trade

    1 Powell, Kenton, and Greg Chen. NSA Files Decoded: Edward Snowdens Surveillance Revelations Explained.The Guardian. N.p., n.d. Web. 13 Nov. 2013. .2 Meece, Mickey. President Obamas Consumer Privacy Bill of Rights. Forbes. Forbes Magazine, 23 Feb. 2012.

    Web. 14 Nov. 2013. .

  • 8/13/2019 1P-23-1213 Privacy and Security Blue Paper

    3/16 2013 4imprint, Inc. All rights reserved

    Commission Act Section 5which bars unfair and deceptive acts and practices in or

    affecting commerce. In addition to the FTC Act, there are 33 other laws, rules and

    guidesthat provide the agency with enforcement authority to protect consumers

    privacy. Its a lot to take in and can leave many organizations wondering what

    they should be doing to protect consumer data within the confines of the law.

    This Blue Paperlooks at the landscape of consumer privacy and security,

    particularly how it applies to U.S. corporations. The paper begins with a synopsis

    on consumer data and a review of the current landscape of privacy controls in

    the United States. The paper also highlights the directives from the Federal Trade

    Commission and the suggested best practices corporations should implement to

    protect consumer data. The final section explores some of the privacy controls in

    other countries, and how it may impact U.S. corporations that operate globally.

    Prepare for a journey into a maze of confusion, because privacy and security

    online is a moving target, but there are some things your corporation should

    know to be in compliance and protect consumer data appropriately.

    The truth about consumer data

    Consumers understand that businesses, governments and other organizations

    gather data about them online. Theres a general acceptance that you leave

    a digital footprint anytime you go online to make purchases or simply surf

    the Web. Personal details about consumers are also online because they

    are shared willingly through chats or social sites like Facebook, Twitter

    or LinkedIn

    . And dont forget there is consumer data available throughgovernment agencies that are fully searchable. For example, users can view

    and search real estate transactions and obtain information on a home and

    its value. Even things like birth certificates and signature copies can be

    found online.

    And it is widely accepted and understood that businesses use consumer

    information to help complete transactions, remember consumer preferences,

    deliver personalized content and special offers, as well as save consumers time.

    Its common for businesses to track website page views and the number of uniquevisitors to a website, among other things.

    So, how do Americans feel about privacy online? According to a study from the

    Pew Internet and American Life Project Data, most Internet users would like to

    be anonymous online but think it is not possible. The study found that 86 percent

    of Internet users have taken steps online to remove or mask digital footprints, by

  • 8/13/2019 1P-23-1213 Privacy and Security Blue Paper

    4/16 2013 4imprint, Inc. All rights reserved

    doing things like clearing cookies or encrypting email.3Another 55 percent

    have taken steps to avoid observation by specific people, organizations or

    the government.

    Other data shows that Americans use mobile technology more than ever and they

    are selective when using apps that require personal information. Pew Internet

    revealed that:

    88 percent of U.S. adults own a cell phone;

    43 percent download cell phone applications to their phones;

    54 percent of app users decided not to install a cell phone app when

    they discovered how much personal information they would need to

    share in order to use it; and,

    30 percent of app users have uninstalled an app because they learned

    it was collecting personal information they didnt wish to share.4

    Moreover, a representative survey of 792 Internet users found that a number of

    users say they have experienced problems because others stole their personal

    information or otherwise took advantage of their visibility online. In particular:

    21 percent of Internet users have had an email or social networking account

    compromised or taken over by someone else without permission; and,

    11 percent have had important personal information stolen such as their

    social security number, credit card or bank account information.

    According to Lee Rainie, Director of the Pew Research Centers Internet Project

    [users] clearly want the option of being anonymous online and increasingly

    worry that this is not possible.5

    The Fede ral Trade Comm ission and

    U.S. pr ivacy regulat ions

    At the state level, some legislators have introduced bills that attempt to

    provide greater privacy controls with mixed results. California, considered theprivacy leader, passed measures that allows minors the right to erase social

    media posts they regret posting. Three other states enacted laws governing

    inheritance of digital information, like Facebook pages. But still, for the most

    3 Rainie, Lee. Pew Research Centers Internet & American Life Project. Anonymity, Privacy, and Security Online.N.p., 5 Sept. 2013. Web. 13 Nov. 2013. .

    4 Boyles, Jan Lauren. Privacy and Data Management on Mobile Devices. Privacy and Data Management onMobile Devices. N.p., 5 Sept. 2012. Web. 15 Nov. 2013. .

    5 Rainie, Lee. Pew Research Centers Internet & American Life Project. Anonymity, Privacy, and Security Online.N.p., 5 Sept. 2013. Web. 13 Nov. 2013. .

  • 8/13/2019 1P-23-1213 Privacy and Security Blue Paper

    5/16 2013 4imprint, Inc. All rights reserved

    part, U.S. consumers are forced to rely on the promises from businesses and

    local governments that their information will not be sold or given away to other

    entities. These promises, however, are not legally binding and are often broken

    without consequence.6

    In the United States, a host of loosely defined consumer privacy laws and

    regulations seek to protect any individual from loss of privacy due to failures

    or limitations of corporate customer privacy measures. Privacy concerns exist

    whenever data relating to a person or persons are collected and stored. Much

    of the privacy protection policies in the United States are dictated by the

    Electronic Communications Privacy Act, which was passed in 1986, before the

    Internet was a reality. Today, for the most part, regulations that dictate how

    companies must maintain and protect consumer information are driven by

    the Federal Trade Commission.

    Indeed, protecting consumer privacy is a hot topic, and one that the Federal

    Trade Commission (FTC) takes seriously. In 2012, Googleand the FTC agreed

    to a $22.5 million settlement, the largest penalty in the agencys history, on

    charges that Google misrepresented its actions to users of Apples Safari

    browser.7Specifically, the FTC charged that Google placed tracking cookies on

    users computers, in some cases working around the privacy settings within

    the browser. In the settlement, Google agreed not to misrepresent its privacy

    policies to consumers. FTC Chairman Jon Leibowitz said that the penalty

    highlights the agencys commitment to enforcing its orders on privacy. The

    record-setting penalty in this matter sends a clear message to all companies

    under an FTC privacy order, Leibowitz said. No matter how big or small, all

    companies must abide by FTC orders against them and keep their privacy promises

    to consumers, or they will end up paying many times what it would have cost to

    comply in the first place.

    To reign in some of the debate, in March 2012, The Federal Trade Commission

    released a report on Protecting Consumer Privacy in an Era of Rapid Change that

    outlines some best practices for businesses to help protect the privacy of American

    consumers.8It outlines methods that give consumers greater control over the

    collection and use of personal data. The report expands on a directive from

    December 2010, which proposed a framework for consumer privacy in light of

    6 Harris, Maryls. Why Doesnt the State Protect Our Online Privacy? Its Not as Easy as You Think. MinnPost.N.p., 11 Nov. 13. Web. 15 Nov. 2013. .7 Tsukayama, Hayley. Google Settles FTC Privacy Case for $22.5 Million, Agencys Largest Penalty. Washington

    Post. The Washington Post, 10 Aug. 2012. Web. 14 Nov. 2013. .

    8 United States. Federal Trade Commission. Protecting Consumer Privacy in an Era of Rapid Change. FederalTrade Commission, Mar. 2012. Web. 15 Nov. 2013. .

  • 8/13/2019 1P-23-1213 Privacy and Security Blue Paper

    6/16

  • 8/13/2019 1P-23-1213 Privacy and Security Blue Paper

    7/16 2013 4imprint, Inc. All rights reserved

    services include technologies or features that drive privacy and data protection. In

    addition, the company is constantly researching new privacy features in computer

    science and software engineering. Part of the Microsoft strategy incorporates

    outreach to customers, industry leaders, civil society and governments in order

    to establish standards and policies that can help people and organizations better

    manage and protect personal information.

    Another good example of privacy by design is found in Googles social network,

    Google+. With Google+, contacts are placed in nonpublic circles and users

    are asked to designate the circle to share with for every post they make.12

    Circles might include friends, colleagues or family, but users are responsible for

    denoting what circles receive information for every post they make. Apples

    iPhoneincorporated privacy by design methods by adding a purple arrow icon

    that appears on the screen letting a user know when their location information

    is being sent to an app. The idea is to make sure users a re aware when sensitive

    information is shared.

    At a minimum, companies should review what they are doing in terms of privacy

    by design. Does your company embed privacy and data protection throughout

    the lifecycle of every process? Is user data private by default? Reviewing these

    questions is critical to make sure your corporation adheres to the basic principles

    of privacy by design. There are a number of online resources that can help you

    define and implement privacy by design. Consider downloading a document from

    the Information and Privacy Commissioneron Operationalizing Privacy by Design:

    A Guide to Implementing Strong Privacy Practices. In addition, the Center for

    Democracy and Technology Onlinealso has a helpful section on privacy by designthat walks companies through basic understanding and implementation.

    Enact s impl i f ied consumer choice pol ic ies

    The FTC promotes simplified consumer choice policies, which essentially

    means being more up-front and direct with consumers about how data will

    be used. The FTC requires that companies simplify choices when it comes to

    how consumers interact with a company to guard their own privacy. The FTC

    states that companies need to offer consumers choices before collecting andusing consumer data for practices that are consistent with the context of the

    transaction or the companys relationship with the consumer. Particularly, the

    FTC recommends that businesses obtain affirmative, express consent before (1)

    using consumer data in a materially different manner than claimed when the data

    was collected; or (2) collecting sensitive data for certain purposes.13

    12 Hill, Kashmir. Why Privacy By Design Is The New Corporate Hotness. Forbes Magazine, 28 July 2011.Web. 14 Nov. 2013. .

    13 United States. Federal Trade Commission. Protecting Consumer Privacy in an Era of Rapid Change. Federal

    Trade Commission, Mar. 2012. Web. 15 Nov. 2013. .

  • 8/13/2019 1P-23-1213 Privacy and Security Blue Paper

    8/16

  • 8/13/2019 1P-23-1213 Privacy and Security Blue Paper

    9/16 2013 4imprint, Inc. All rights reserved

    whether to be tracked across other parties websites (including affiliates

    websites). Many companies have made strides in this area to assist consumers in

    controlling what information is accessible and for what purposes, but the FTC

    encourages continued progress and more complete implementation of consumer

    control mechanisms. The FTC established a workgroup of several companies to

    further develop controls that can be adopted universally.

    The FTC suggests that Do Not Track should be put into effect through legislation

    or robust self-regulation, but it is not legally binding. The framework states that

    the most practical method to apply this function would likely involve placing a

    setting similar to a persistent cookie on a consumers browser and conveying that

    setting to sites that the browser visits, to signal whether or not the consumer

    wants to be tracked or receive targeted advertisements. Last year, a standardized

    Do Not Track feature implemented by some organizations allowed consumers to

    opt out receiving targeted ads from up to 114 third-party advertisers. A million

    people used the tool and more than 5 million visited the site for information

    about online ads.14

    Right now, you can select Do Not Track options in Firefox, Internet Explorer

    and Safari, which send messages to websites that users do not want to be

    followed online with cookies or other mechanisms. Some companies are being

    proactive when it comes to adding Do Not Track Features. You can check out

    FireFoxfor example, and its defined Do Not Track optionsonline. Twitteris

    another company that receives high marks for Do Not Track compliance. The

    company gives users the option to opt out of being tracked and provides

    easy-to-follow directionson how to do it. Also, Twitter recently fought a court

    order asking for users data, which demonstrates a commitment to protecting user

    privacy on a whole.15Its not a bad idea to check out what other companies are

    doing with Do Not Track to get some ideas for your own organization.

    Keep in mind though, the Do Not Track feature is unresolved and there is no

    consensus on what should be included and how companies should be required

    to use it. A working group on the issue is affiliated with the World Wide Web

    Consortium (W3C),the official custodian of Web standards. The collection of

    ad companies, privacy advocates and outside experts convened to settle the

    longstanding debate about consumer privacy and determine the future of

    advertising technology. The working group is stalled on a number of issues,

    14 Fung, Brian. The Internets Best Hope for a Do Not Track Standard Is Falling Apart. Heres Why. The Switch:Where Technology and Policy Connect. The Washington Post, 11 Oct. 2013. Web. 15 Nov. 2013. .

    15 Wagstaff, Keith. Grading How Well Companies Are Cooperating with Do Not Track | TIME.com. Time.Time, 12 May 2012. Web. 26 Nov. 2013. .

  • 8/13/2019 1P-23-1213 Privacy and Security Blue Paper

    10/16 2013 4imprint, Inc. All rights reserved

    including the obligations advertising companies have with regard to online

    tracking and what the word tracking even means. The Electronic Frontier

    Foundation asked for the group to disband, citing lack of agreement and loss of

    confidence in the process. At issue is the fact that although the opt-out function

    is meant to guarantee the end of targeted advertising, it doesnt rule out the

    collection of consumer data. As of October 2013, the future of Do Not Track

    negotiations is delayed, pending the establishment of Do Not Track guidelines

    and steps for compliance.

    Be transparent with consumer data

    Keep it short and simple: Thats the FTCs advice for creating and improving

    existing transparent data practices. In particular, companies should use privacy

    notices that are clearer, shorter, and more standardized to enable better

    comprehension and comparison of privacy practices.16Furthermore, companies

    should provide reasonable access to the consumer data they maintain; the extentof access should be proportionate to the sensitivity of the data and the nature of

    its use. Finally, organizations should prioritize the education of consumers with

    regard to commercial data privacy practices.

    The FTC advocated for Congress to enact privacy legislation to give legal

    enforceability to its recommended practices; in the meantime, the FTC advised

    that companies should accelerate the pace of self-regulation.17To-date there is

    no overarching legislation in place, how transparency is available to consumers is

    decided by organizations on a case-by-case basis.

    Some companies are being proactive in providing consumers with full

    transparency. Take for example, the company Acxiom. The organization

    recently launched a site called AboutTheDatathat invites users to enter

    their names, addresses, and the last four digits of their social security

    numbers to access a portal that reveals the information the company

    has gathered on them. This includes age, estimated income, residence,

    ethnicity, marital status and categories of product purchases, including

    anything from food to home furnishings that the consumer made viamail order. Its a proactive attempt to give consumers a chance to see

    what kind of information the company collects combined with the

    ability to edit and change any data, as well as opt-out from receiving

    targeted ads.

    16 United States. Federal Trade Commission. Protecting Consumer Privacy in an Era of Rapid Change. FederalTrade Commission, Mar. 2012. Web. 15 Nov. 2013. .

    17 Ibid.

  • 8/13/2019 1P-23-1213 Privacy and Security Blue Paper

    11/16 2013 4imprint, Inc. All rights reserved

    In 2012, Epsilon, another data collection agency, began providing customers

    with a paper report for a small fee that discloses all the data the company has

    collected on them. Likewise, BlueKai and Exelate, both companies that collect

    behavioral data for online ad targeting, are also providing data-transparency

    systems. The BlueKais registryaims to put consumers in control of their digital

    footprint by allowing consumers to see what preferences are being logged by

    other third-party data creators on their computer. As BlueKai states on its home

    page, its a way to be transparent about what data companies think about your

    computer. Consumers can control their anonymous profile by managing topics of

    interest, changing preferences or choosing to opt out of future marketing efforts.

    Michael Nadeau, the publisher of Data Informed, put together a list of things

    every company should tell their consumer regarding its data policies and

    collection.18According to Nadeau, companies should share the following:

    exactly what data is being collected, how the data collection technology works,

    how the data is secured,

    why the data is collected,

    how the data is analyzed and reported,

    who is seeing the data, and

    how the collected data benefits the consumer.

    Once your company outlines the answers to these questions, it should be

    circulated in a way that makes it easy for consumers to find. Providing the

    answers to simple questions like these helps promote full transparency and often

    puts consumers at ease regarding your data collection policies.

    What about the Consumer Pr ivacy Bi l l of Rights?

    In 2012, the Obama administration proposed the Consumer Privacy Bill of

    Rights, which is the most comprehensive bill designed to address consumer

    privacy concerns. Specifically, the bill calls for a multi-stakeholder process to

    produce enforceable codes of conduct among organizations and agencies that

    collect consumer data. These guidelines outlined in the bill promote the idea of

    transparency in all aspects of data use to allow individuals the opportunity to

    control when and how their personal information is used.

    18 Nadeau, Michael. To Win Consumer Trust, You Need Transparent Data Collection Policies - See More At:Http://data-informed.com/win-consumer-trust-need-transparent-data-collection-policies/#sthash.omc8YzVF.dpuf. Data Informed: Big Data and Analytics in the Enterprise. N.p., 20 Sept. 2013. Web. 17 Nov. 2013..

  • 8/13/2019 1P-23-1213 Privacy and Security Blue Paper

    12/16 2013 4imprint, Inc. All rights reserved

    The Consumer Privacy Bill of Rights proposes the following:

    Individual control: Consumers have a right to exercise control over what

    personal information companies collect from them and how they use it.

    Transparency:Consumers have a right to easily understandable and

    accessible information about privacy and security practices.

    Respect for context:Consumers have a right to expect that companies will

    collect, use, and disclose personal data in ways that are consistent with the

    context in which consumers provide the data.

    Security: Consumers have a right to secure and responsible handling of

    personal data.

    Access and accuracy: Consumers have a right to access and correct

    personal data in usable formats, in a manner that is appropriate to the

    sensitivity of the data and the risk of adverse consequences to consumers

    if the data is inaccurate.

    Focused collection:Consumers have a right to reasonable limits on the

    personal data that companies collect and retain.

    Accountability: Consumers have a right to have personal data handled by

    companies with appropriate measures in place to assure they adhere to the

    Consumer Privacy Bill of Rights.

    President Obama challenged companies to begin immediately working with

    privacy advocates, consumer protection enforcement agencies, and others under

    the direction of the Commerce Department to develop enforceable codes of

    conduct. The goal is for Congress to put those agreed-upon guidelines into law.

    Thus far, the response to the bill has been varied. Some claim that the bill is

    largely aspirational because it does not create any enforceable obligations.

    In truth, the framework simply creates suggested guidelines for companies

    that collect personal data as a primary function of their business operations.

    There is no legislation officially in place to monitor corporate behaviors, and

    as the administration recognizes, in the absence of legislation these are only

    general principles that afford companies discretion in how

    they implement them.19As a corporation, you may be asking,

    whats next? Thats a good question, and one that is not clearly

    answered. While the bill proposes a list of suggestions and ideas,

    it is not legally binding. Until more legislation is approved by

    Congress, the impact of the bill remains to be seen.

    19 We Cant Wait: Obama Administration Unveils Blueprint for a Privacy Bill of Rights to Protect ConsumersOnline. The White House. N.p., 23 Feb. 2012. Web. 14 Nov. 2013. .

  • 8/13/2019 1P-23-1213 Privacy and Security Blue Paper

    13/16 2013 4imprint, Inc. All rights reserved

    What about pr ivacy and security laws in

    the rest of the wor ld?

    Internet privacy laws across the globe vary from robust, non-existent and

    ambiguous. China has some of the strongest consumer privacy and security

    rules in the world. Effective in September 2013, Chinas Ministry of Industry and

    Information Technology (MIIT) passed strict regulations aimed to protect thepersonal information of telecommunication and Internet users. Companies are

    required to post personal information collection polices in their place of business

    (or online) and may not use personal information without explicit user consent.

    Organizations must also notify users regarding the collection, purpose, methods

    and scope of use when collecting personal information. These are considered

    binding requirements in China and legal action can be taken if a company

    violates the policy. However, Chinas Internet regulations are not applied to

    other countries.

    The European Union (EU) also adopted strict data privacy laws as well. The

    EUs General Data Protection Regulation(GDPR) is applied to 28-member

    nations and is planned to take effect in 2016, after a two-year transition period.

    It harmonizes the current data protection laws in place across all EU member

    states. Basically, the GDPR establishes a regulatory framework that outlines a

    number of restrictions designed to protect the privacy of individuals and personal

    data within the European Union (EU). It also establishes strict limits on the

    collection and use of personal data, and demands that every EU state creates an

    independent national body responsible for the protection of these data. Amongother things, the measure limits the tracking and profiling activities that allow

    for targeted advertising and the ability of a consumer to erase personal data

    information. To ensure compliance, fines can be imposed that range anywhere

    from .5 percent to two percent of an organizations global sales.

    Some companies are already taking note of the EU legislation. Google,

    Microsoft, Apple and Facebook have already modified privacy policies as a

    result of the mandate. To be compliant with EU regulations, U.S. companies

    that operate in Europe must address what the EU calls the right to beforgotten. It essentially means that the user owns his or her information and

    that the user has the right to prevent websites and other online services from

    keeping it and storing it. In short, it means providing a system that allows users

    to erase data after it has been collected.

    U.S. companies will also need to gain explicit consent to share data. Currently in

    the U.S., everything from financial institutions to social networking sites share

    user data with partners and advertising firms. According to the EU proposal,

  • 8/13/2019 1P-23-1213 Privacy and Security Blue Paper

    14/16 2013 4imprint, Inc. All rights reserved

    users should decide if and when a company can share his or her data. That means

    American companies must become more upfront about exactly what data they

    are sharing and give users the opportunity to opt out of that sharing without

    being penalized.

    Seize the opportunity: How to manage

    consumer pr ivacyBelieve it or not, companies can turn the debate on privacy and consumer

    protection into opportunity. According to authors Catherine Tucker and Avi

    Goldfarb from MIT Sloan Management Review, by managing consumer privacy

    proactively you can improve your brand.20As the authors describe in the article,

    Why Managing Consumer Privacy Can Be an Opportunity: Companies should

    view the establishment of a framework of consumer privacy controls as a key

    marketing and strategic variable that conveys considerable benefits.21

    According to the authors, there are three things your company can do right

    now to demonstrate a commitment to consumer privacy and establish a privacy

    framework. These include:

    1. Develop user-centric privacy controls to give customers control.

    2. Avoid multiple intrusions.

    3. Prevent human intrusion by using automation wherever possible.

    Why should you develop user-centric privacy controls? Because it allows

    consumers to set limits on what aspects of their data the company can access.

    Research shows that if customers feel in control of their data, they become

    substantially more responsive to targeted advertising. To develop a user-centric

    privacy approach consider the following:

    Be up front about the types of data you are collecting about your consumers

    and with whom you are sharing it.

    Offer consumers a short menu of options when they register with your

    website or make a purchase.

    Replicate this process to drive registrations by specifying that registered

    users get more choice on how their data is used.

    20 Tucker, Catherine, and Avi Goldfarb. Why Managing Consumer Privacy Can Be an Opportunity. MIT SloanManagement Review RSS. N.p., 19 Mar. 2013. Web. 26 Nov. 2013. .

    21 Ibid.

  • 8/13/2019 1P-23-1213 Privacy and Security Blue Paper

    15/16 2013 4imprint, Inc. All rights reserved

    By giving consumers power to control their data, it can increase their comfort

    with how companies use their data to improve their product offerings. The key

    for companies is to employ consumer-centric controls and to view them as an

    integral part of managing a positive customer relationship.

    Another best practice is to avoid multiple intrusions. Ultimately, just because

    you can intrude on a consumer by either using data or pushing content and pop

    up ads, it does nothing to obtain customer loyalty. In fact, the combination of

    multiple intrusive tactics usually backfires. Research shows that customers will

    accept one targeted intrusion (e.g. pop-up ads) but when its combined with

    another intrusion (e.g. targeted advertising) it harms the customer perceptions of

    the company. Below is a list of techniques to consider to avoid multiple intrusions:

    When using customer data to target messages, make sure that customers do

    not feel taken advantage of in other ways.

    Ads that target Web-browsing behavior are more effective if they do notintrude on the computer screen.

    Ads that pop up or take over a computer screen will be more effective if

    they do not also target prior Web-browsing behavior.

    Automated telephone messages feel more intrusive if they start with a

    robotized voice addressing the consumer by name.

    Finally, consider using automation to prevent human intrusion. Consumers

    are more comfortable when a machine processes their personal data than when

    a person does. Automated systems search habits, buying patterns and trends,

    and do not pass judgment on consumer behavior. As a result, consumers find its

    much easier to forgive an automated system for sending dieting tips instead of

    an actual person. The idea is to ensure consumers that their privacy, particularly

    consumer privacy, is valued by your organization. A best practice is to reinforce

    an informal culture in which privacy is respected and privacy violations are

    punished internally.

    Overall, companies have an opportunity to demonstrate to consumers that they

    care about privacy issues. As noted in the MIT article: Companies [need to] shift

    from thinking about privacy as a compliance burden to thinking of treating data

    with courtesy as a fundamental part of the relationship with their customers.

    Privacy policies should be organized around managing customer data courteously,

    in accordance with consistent principles that customers feel comfortable with.22

    22 Ibid.

  • 8/13/2019 1P-23-1213 Privacy and Security Blue Paper

    16/16

    4imprint serves more than 100,000 businesses with innovative promotional itemsthroughout the United States,

    Canada, United Kingdom and Ireland. Its product offerings include giveaways, business gifts, personalized gifts,

    embroidered apparel, promotional pens, travel mugs, tote bags, water bottles, Post-it Notes, custom calendars,

    and many other promotional items. For additional information, log on to www.4imprint.com.

    Whats n ext?

    The rapid growth of technology, the Internet and electronic commerce have

    sparked a debate on privacy and security that will continue to evolve. Privacy

    issues are at the forefront of government agencies, businesses, politicians and the

    public. No doubt the debate will continue and more changes will be required.

    Until then, its a good idea to make sure your company is doing all it can topromote transparency, consumer choice and privacy by design. If you havent

    already, review your privacy policies and make sure they are in sync with the latest

    legislative requirements. There are a number of organizations that conduct a

    privacy audit and a basic Internet search will yield several experts in the area. For

    example, The American Library Association provides a number of free resources

    that can help you get started. Theres also a Privacy Toolkitthat walks companies

    through the basics of evaluating your privacy strategy.

    Whatever you do, its a good idea to do it soon. Privacy and security online is amoving target, but one that demands your attention. If anything, the controls

    will only get stronger as more legislation is introduced. If you reign in privacy

    controls now, youll be ready for whatever comes next.