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Date: February 12 & 13, 1998

Privacy - the First Roadkill on the Information Superhighway? (cont.)

Electronic Commerce

Electronic commerce, conducting business over the information superhighway, is growing at an phenomenal rate. Its many recognised advantages include a new channel of doing business which brings in new revenue, particularly with small and medium enterprises (SMEs) which could now access global markets easier and cost-effectively. New and innovative businesses also are mushrooming, e.g. search companies with specialised databases, WEB design and marketing companies, multi-media interactive services.

There is a significant road block to the seemingly unstoppable momentum in harnessing the potentials of the information superhighway. This stumbling block is to do with ensuring trust and confidence of the both the consumers and the businesses. A European Union document on Electronic Commerce summaries this concern admirably2:

"For electronic commerce to develop, both consumers and businesses must be confident that their transaction will not be intercepted or modified, that the seller and the buyer are who they say they are, and that transaction mechanisms are available, legal and secure. Building such trust and confidence is the prerequisite to win over businesses and consumers to electronic commerce. Yet many remain concerned about the identity and solvency of suppliers, their actual physical location, the integrity of information, the protection of privacy and personal data, the enforcement of contracts at a distance, the reliability of payments, the recourse for errors or fraud, the possible abuses of dominant position - considerations which are heightened in cross-border trading."

According to the January 1997 Eurobarometer survey on "Information Technology and Data Protection", two third of respondents are worried about trails of personal data that are left behind when using digital information networks.

Addressing the Privacy Concerns

  1. Individual Level
    Given the origin, nature and status of the information superhighway, individuals must recognise the privacy risks associated with the collection, use and security of personal data when one surfs the net for fun, information or to obtain goods or services. Of particular concern to an individual is the potential loss of his or her personal privacy if data about him/her are collected without his or her knowledge or intercepted by intruders who may misuse the data for fraudulent or other purposes which the individual does not intend the data to be used; e.g. profiling. It would be in the individual's own interest to take appropriate and practical precautions to minimise such risks, e.g. using encryption to safeguard information transmitted, choosing a "privacy-friendly" ISP and interacting with "privacy-friendly" websites of choice.

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