The Privacy Leadership Announces New Survey Reveals Trust Gap Exists Between Consumers and...

Business Editors

NEW YORK--(BUSINESS WIRE)--April 2, 2001

The Privacy Leadership Initiative Seizes Accountability for

Narrowing Gap; Launches Web Site with Tips and Tools

American consumers are concerned about sharing their personal information online and

This trust gap was a key finding of a "beta" survey conducted by Harris Interactive, the first in a series of seven commissioned by the Privacy Leadership Initiative (PLI) to be released over the next 18-24 months.

"We recognize business has a significant role to play in helping consumers understand the choices they have, which is the driving force behind the formation of the Privacy Leadership Initiative. We intend to address this problem head-on, using the results of this research to drive our activity, and create a climate of trust between consumers and businesses," said PLI Executive Director Walter (Wally) J. O'Brien. "And part of the solution is to help both consumers and businesses get smarter about online and offline privacy."

Other key findings include:

-- Consumers' worry that their information will be used for purposes other than
those stated in a company's privacy policy. Online users place a high value on
seeing privacy statements (83-91%) but still worry about the safety of their
information. Of the 73% of online users who have seen privacy statements, a
majority (78%) actively read them, although fewer recall seeing information
about the choices they had as to how personal information might be used (52%)
or how they might access personal information that might be stored about them
(44%).

-- Privacy seals also increase consumer confidence, with almost half (49%) of
those who have seen them saying they are more willing to provide personal
information as a result.

-- Consumers are not using existing tools and technologies to protect their
privacy. Of the online users surveyed, only 15% have used privacy protection
software, while only one in 10 have surfed the Web anonymously. Just 5% have
used software to make anonymous purchases.

-- Consumers have mixed opinions about the benefits of personalization. While
online users (59%) are more likely than non-online users (49%) to see
personalization as a good thing, nearly four in 10 online users (37%) and 44%
of non-online users say they do not value personalization. Of those that say
they value personalization many still would not exchange personal information
for that benefit.

"This suggests that consumers want to know what businesses are doing with their information, how it is protected and what real benefit this exchange has for them," said David Krane, Senior Vice President with Harris Interactive. "These findings challenge business leaders to step up their efforts to educate consumers about how they protect consumer's personal information and how consumers can protect themselves. It also suggests that businesses must do a better job of demonstrating the benefits of this information exchange."

"Today's consumers need more assurances that their information is being protected and used responsibly," O'Brien said. "But history also suggests that most consumers want access to the benefits of the information-based marketplace, such as instant credit, discount coupons and products appropriate to a particular lifestyle. Information sharing based on informed choice and real protection works to benefit all parties over time, but first we must help consumers understand the steps they can take today to protect their information and demonstrate available privacy-protection tools."

O'Brien continued, "Our goal is to create an `etiquette,' or model manners for the exchange of personal information among businesses and consumers. Central to that goal is the Privacy Manager's Resource Center, which we produced to provide companies the building blocks necessary to develop appropriate offline and online privacy practices that respect consumers' choices and are appropriate to how they use consumers' information."

The Privacy Manager's Resource Center and the Consumer Toolbox - which contains helpful tips on how to protect your privacy and other information for consumers - as well as the latest in privacy news and research can be found at www.understandingprivacy.org.

"Not only has the research helped us focus our resources on the activities we believe will make a difference, but we've also used this beta survey to identify seven key metrics by which we will measure our effectiveness through additional surveys going forward," said O'Brien. These metrics include:

1. Overall acceptance - are more people online, making purchases,

providing information?

2. Trust - is the level of trust between consumers and businesses

increasing?

3. Familiarity - are confidence levels increasing for both

well-known and lesser-known companies?

4. Privacy concerns - what are the key drivers and their

importance?

5. Tools and technology - are more people using tools/technology?

How important are privacy seals?

6. Personalization - are more people willing to exchange

information for personalized goods/services

7. Confidence - what are the confidence levels of online versus

offline mediums such as phone/fax/mail.

Wave one of the PLI/Harris Interactive study was conducted between November 28 and December 7, 2000, a national cross section of 1,026 adults (aged 18 and over) were interviewed by telephone and 2,087 adults (aged 18 and over) were interviewed online. The telephone and online results were weighted to be representative of the general population and the online population, respectively.

For the Executive Summary, go to http://www.understandingprivacy.org/content/library/research.cfm

ABOUT THE PRIVACY LEADERSHIP INITIATIVE

The PLI is a partnership of visionary CEOs from 15 major corporations and 9 leading business associations who believe individuals should be able to choose what and how personal information is used in the pursuit of better meeting their needs.

Through research and knowledge building, the PLI is working to build a climate of trust - both online and offline - to help accelerate the emergence of the information economy as a safe marketplace. For more information, please visit our Web site at www.understandingprivacy.org

ABOUT HARRIS INTERACTIVE

Harris Interactive (Nasdaq:HPOL), the global leader in online market research, uses Internet-based and traditional methodologies to provide its clients with critical knowledge concerning the views, experiences, behaviors and attitudes of people worldwide.

Known for the Harris Poll, Harris Interactive has 45 years of experience in providing its clients with market research and polling services including custom, multi-client and service bureau research, as well as customer relationship management services. Harris Interactive acquired the custom research group of Yankelovich Partners in February 2001.

Through its U.S. and Global Network offices, Harris Interactive conducts research around the world, in multiple, localized languages, using its proprietary technology to survey its database of more than 7 million online panelists. For more information about Harris Interactive, please visit our Web site at www.harrisinteractive.com.