Digital Privacy in the Marketplace focuses on the data ex-changes between marketers and consumers, with special ttention to the privacy challenges that are brought about by new information technologies. The purpose of this book is to provide a background source to help the reader think more deeply about the impact of privacy issues on both consumers and marketers. It covers topics such as: why privacy is needed, the technological, historical and academic theories of privacy, how market exchange af-fects privacy, what are the privacy harms and protections available, and what is the likely future of privacy.

University of Massachusetts-Amherst

Introduction ........................................................................................xiii Chapter 1 The Information Environment and the Privacy Problem ...1 Chapter Overview .............................................................1 The Information Environment ..........................................1 Technology Is Facilitating Information Exchange ..............8 What They Know ............................................................10 The Privacy Problem .......................................................12 Chapter Summary ...........................................................13 Chapter 2 Why Privacy Is Needed ...................................................15 Chapter Overview ...........................................................15 The Death of Privacy? .....................................................15 Toward a Redefinition of Privacy and New Behaviors ......16 Why Consumers Want/Need Privacy ..............................17 Creativity ........................................................................21 Protected Communication in Relationships ....................21 Dignity ...........................................................................22 Freedom ..........................................................................22 Why Businesses Want/Need Privacy?...............................23 Chapter Summary ...........................................................25 Chapter 3 Perspectives of Privacy: Technology History and Academic Theories....................................................27 Chapter Overview ...........................................................27 A Brief History of Privacy and Technology ......................27 Academic Theories ..........................................................30 Privacy Boundary Theories ..............................................33 The Privacy-Marketing Cost-Benefit Exchange and Contingencies ...........................................37 Chapter Summary ...........................................................46 Chapter 4 Information Exchange and Privacy in the Marketplace ..........................................................49 Chapter Overview ...........................................................49 Conceptual Model of Factors Affecting Information Exchange .....................................................49 Marketing and Exchange Theory .....................................51 Information Exchange .....................................................53 Social Contracts for Information Exchanges ....................55 Technology and Information Context .............................64 Marketer Background Factors .........................................69 Consumer Background Factors .......................................80 Summary ........................................................................81 Chapter 5 Information Based Privacy Harms ...................................83 Chapter Overview ...........................................................83 Information Sensitivities and Perceived Risks ..................83 The Perceived Risk of Different Information Types .........87 Information Harms in Exchange .....................................93 Harms from Information Collection ...............................93 Harms from Information Processing ...............................94 Harms from Intrusions....................................................95 Harms from Information Sharing ...................................96 Harms from Specific Technologies...................................98 Chapter Summary .........................................................103 Chapter 6 Forms of Protection ......................................................105 Chapter Overview .........................................................105 Externally Focused Legal and Suggested Self-regulatory Approaches ............................................106 The Fair Credit Reporting Act .......................................108 Communication Laws ...................................................108 CAN-SPAM ACT .........................................................109 Children's Online Privacy Protection Act ......................110 Gramm Leach Bliley Act and Privacy Notices ................110 Health Insurance Portability and Accountability Act .....111 The FTC and U.S. Regulatory Enforcement .................111 Privacy by Design ..........................................................113 Enforcement .................................................................114 EU Directive and Global Perspective .............................116 Businesses and Consumers Actions to Protect Consumer Information Privacy .....................................117 Technologies (EPIC Online Guide to Practical Privacy Tools n.d.) ......................................123 Chapter Summary .........................................................132 Chapter 7 The Future of Privacy ....................................................133 Chapter Overview .........................................................133 The Technological Future ..............................................134 Benefits of Future Technologies .....................................140 Risks of Future Technologies .........................................140 The Theory of Creepy ...................................................141 Cohort Effect on the Future of Privacy and the Perception of Creepy ........................................145 Erosion of Privacy .........................................................146 Loss of Anonymity ........................................................146 Managing Creepy and the Future of Privacy ..................149 Concluding Thoughts about the Future ........................153 References ...........................................................................................155 Index .................................................................................................173