Consumers Raise Doubts About Personal Data Practices

Nearly four out of five consumers believe they have lost control over how personal information is collected and used by companies, according to a new report. Fewer than half surveyed think businesses handle information collected about consumers in a “proper and confidential way.”

Even more disturbing, only 38% feel that existing laws and practices provide a reasonable level of protection for consumer privacy, according to research from Harris Interactive on behalf of Privacy & American Business.

Three-fourths indicated that the likelihood of companies giving their data to a third party was a major concern. Seven in ten were alarmed at the prospect of transactions not being secure, resulting in other companies gaining access to credit card numbers. A like amount were afraid that their personal information would be stolen and used by a hacker or intruder.

Confidence can have a positive effect on consumer behavior. Nearly six in ten said that they would be likely to recommend a company that followed its policy to family and friends, and half said they would increase their business with the firm. But only one third said they would be more willing to disclose demographic or personal preference data to the company.

Consumers were wary even about offline data sharing. Eighty-seven percent said that at some point they had refused to give out personal information, and more than 80% had asked a company to remove their names and addresses from marketing lists. More than half said they had decided against making an offline purchase because they didn