For Immediate Release: CONTACT: Holly Anderson, ext. 114
October 4, 2000 Carol McKay, ext.116
  (202) 835-3323

 

Online Americans More Concerned about Privacy than Health Care, Crime, and Taxes, New Survey Reveals

NCL Forms New Partnership with Dell to Educate Consumers about
Privacy, Security, and Children’s Safety Online

    WASHINGTON, DCConsumers are worried about their privacy and security online, according to a new Harris Interactive survey commissioned by the National Consumers League with the support of Dell. In fact, more Americans say they are very concerned about loss of personal privacy (56 percent) than health care (54 percent), crime (53 percent), and taxes (52 percent).

            In response to this and other concerns highlighted by the survey, NCL and Dell have formed a partnership to help educate consumers about privacy, security, and their children’s safety online. “Concern about not having control of their personal information keeps consumers from taking full advantage of everything that the Internet offers,” said Susan Grant, vice president of public policy for NCL. “They need to know their rights and how they can protect their privacy and safety in the online world.”

That information is now available through a new page on the NCL Web site, www.nclnet.org
/essentials
and a brochure distributed through NCL and in Dell’s consumer computer boxes. “Dell has a long history of advocating consumer interests, especially online privacy,” said John Hamlin, vice president of Dell’s consumer division. “Companies like Dell, with direct customer relationships and a large and growing Internet business, know that consumers will only use a medium they can trust. This survey shows that our industry has more work to do in earning consumer trust and in equipping consumers with the essential information they need to control and make the most of their experience on the Internet. As an online leader, Dell is committed to helping consumers be more confident about Internet use.”

Online Privacy

When asked specifically about their online privacy, survey respondents said they were most worried about Web sites providing their personal information to others without their knowledge (64 percent) and Web sites collecting information about them without their knowledge (59 percent). This issue resurfaced when consumers responded to questions about online privacy policies. When asked how important they thought it was that companies adopt and communicate various privacy policies, 71 percent said it is absolutely essential that companies ask consumers’ permission before using their personal information for any purpose other than the one originally given.

In general, consumers are more aware and trusting of companies’ privacy policies than they were in 1998. Ninety percent have seen a privacy notice, up from 37 in 1998, and 91 percent trust companies somewhat or completely to follow their policies, up from 67 percent in 1998. A majority of consumers are reading privacy policies at least sometimes and believe it is absolutely essential for the sites they visit to tell them how their personal information will be used. Two-thirds (65 percent) say that if a site doesn’t explain its privacy policy, they’ll continue to browse, but won’t provide any personal information.

Online Security

Consumers are most worried about the security of their financial information online, with 53 percent afraid that their financial or other sensitive information may be stolen during transmission to a Web site. Other top security fears included: receiving a computer virus (47 percent), and hackers stealing their customer information from a company database (35 percent).

Nearly one quarter of online consumers have not purchased products or services online in the last year, citing fears about their credit card numbers being stolen (57 percent) and concern that their personal information may be abused (57 percent) as the top reasons why. For all online consumers, it is most important that credit card numbers are protected online (88 percent) followed by social security numbers (85 percent), information about financial assets (74 percent), and contact information like name and address (61 percent).

“Consumers are definitely worried about using their credit cards online, but only three percent have actually had their financial information stolen by someone while transmitting it to a Web site,” said Grant. “If we can educate consumers about how to pay safely online, we can help alleviate those concerns.” Most consumers (66 percent) said they had not been victims of privacy or security breaches online. The most common problem people actually had online was getting a computer virus (28 percent).

Children’s security and privacy

Concern about child safety and privacy online is high. The biggest fears were about undesirable characters being able to reach their children (69 percent) and personal information being collected about kids without their parents' knowledge (65 percent). Thirteen percent of parents with children 8-18 don’t allow them to go online at home, with 33 percent believing they are not old enough and 30 percent worried about their safety.

Of the children who do go online at home, 58 percent aren’t supervised by adults, and only 29 percent of parents use software to limit or restrict their children’s access to certain sites or content on the Internet. “This indicates that parents need to take a more active role in ensuring their children’s online safety and privacy,” said Grant.

Ongoing Education

            When tested on their knowledge about online security and privacy rights, consumers proved there’s still much education needed on these issues. More than half (53 percent) believe that there is no way to tell if a Web site is secure and 34 percent incorrectly think it’s illegal for Web sites to share or sell personal information unless the consumer is notified and agrees. Eighteen percent are unaware that it’s illegal for sites to collect information from children under 13 without their parents’ explicit permission. Nine percent think Web sites must be certified as secure by the government.

            “The survey shows many areas where consumers need more information,” said Susan Grant. “We want to arm consumers with information to help make their online experiences safer and address their privacy concerns.”

               Consumers can send away for a free brochure at Online E-ssentials, PO BOX 8797, St. Louis, MO 63101or download the brochure online at www.nclnet.org/essentials. The Web page also has expanded information about privacy and security, and links to other resources.

Note: A press conference about the details of the E-consumer Confidence Study results and the Online E-ssentials campaign will be held at 10:00 a.m. EST on Wednesday, October 4. Members of the media may join on the Web: http://webevents.broadcast.com/dell/nclpress1000, by phone: 800- 406-5356 (code: 462734, title: NCL/Dell E-ssentials), or in person: Conus Studios, 1825 K Street, NW.

Methodology

            This Harris Interactive survey was conducted via the Harris Poll Online, within the United States, from August 30 - 31, 2000. The poll was conducted among 2,810 aged 18 or over. The national sample was designed to be representative of adults aged 18 or over who are online. Figures for age within gender, race, education, region, and income were weighted where necessary to bring them in line with their actual proportions in the population.

            In theory, with a sample of this size and after weighting the data, one can say with 95 percent certainty that the results have a statistical precision of plus or minus 2 percentage points of what they would be if the entire adult online population of the United States had been polled with complete accuracy. However, there are several other possible sources of error in all polls or surveys that are probably more serious than theoretical calculations of sampling error. They include question wording and question order, non-response, and screening. It is difficult or impossible to quantify the errors that may result from these factors.

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to identify, protect, represent, and advance the economic and social interests of consumers and workers. NCL is a private, nonprofit membership organization. For more information about NCL, visit www.nclnet.org, or email info@nclnet.org

 

Dell Computer Corporation (Nasdaq: DELL) is the world's leading direct computer systems company, based on revenues of $28.5 billion for the past four quarters, and is a premier provider of products and services required for customers to build their Internet infrastructures. The company ranks No. 56 on the Fortune 500, No. 154 on the Fortune Global 500 and No. 3 on the Fortune “most admired” lists of companies. Dell designs, manufactures and customizes products and services to customer requirements, and offers an extensive selection of software and peripherals. Information on Dell and its products can be obtained on the World Wide Web at www.dell.com. Members of the media can reach Dell at 512-728-4100.

 

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