At this important juncture, it makes sense to evaluate the strengths and
weaknesses of these techniques. Before the FTC decides what
approaches to pursue during the next decade, we suggest that the
agency critically reflect on research that explores the effectiveness of
the self-regulatory system.
The FTC has held close the assumption that introducing additional
information about companies’ data practices into the marketplace
through self-regulatory systems, combined with consumer self-help,
will allow consumers to adequately protect their privacy as they see fit.
But research shows that consumers continue to have high levels of
concern for privacy of personal information. It also reveals that the
EULAs and privacy policies used to convey this information to
consumers are not effective—they are rarely read and are in many
instances unreadable. More importantly, consumers appear to believe
that the term “privacy policy” conveys a specific level of privacy
protection. Confusion exists among consumers concerning what rights
they have and can exercise over personal information. Interestingly,
while the FTC has pursued self-regulatory solutions to consumer
privacy, the large majority of consumers believe incorrectly that laws
protect their personal information from secondary use.