Companies Fail to Meet Web Privacy Standards: Study

Posted on by Chief Marketer Staff

Corporate Web sites fail miserably to live up to international privacy standards, according to a new study from Andersen Consulting.

The survey of 75 sites run by large and medium-sized companies showed that none totally lived up to the standards agreed on by the United States and the European Union last year, Reuters reported.

Not one company met all of the six principles listed in the standards. Two firms met five, and eight companies lived up to only one principle, Reuters reported.

Only 25% provided adequate notice. Five percent listed enforcement provisions.

Andersen executives predicted problems when and if the EU decides to enforce the standards.

The standards state that companies must inform consumers about what id done with personal data; use the data only for its stated purpose; allow consumers to correct misinformation; allow them to opt out; store the data in a secure manner; and provide recourse for violations.

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