Web Marketers Improve Privacy Practices, Foundation Finds

Web marketers are using fewer cookies and collecting less personal data, according to a think tank that studies online privacy practices.

A survey by the Progress & Freedom Foundation shows that 48% of sites use third-party cookies, compared with 78% in May 2000 when the Federal Trade Commission released a similar study. And those that do are much more likely to disclose the practice.

In addition, the percentage of firms that collect personal information is down from 96% two years ago to 84%.

“By every relevant measure, the extent of the online information collection has declined since May 2000,” the Foundation reported.

The report was released during a National Press Club briefing featuring Federal Trade Commission Chairman Timothy J. Muris

. The study also found that the use of opt-in had doubled from 15% to 32%, and that 93% now offer a choice over whether information can be shared with third parties. Two years ago, 77% offered that option.

“What these results suggest, simply put, is that the privacy practices and policies of commercial Web sites are continuing to evolve, and by at least some criteria, to improve,” the report noted.

One possible reason for the improvement is that “firms are responding to consumer concerns,” the Foundation said. “For example, some consumers choose to leave a site when personal information is requested.

The reported continued, “Especially in the wake of the dot.com meltdown, firms may have overestimated the economic value of collecting personal information.”

The report is based on information collected by Ernst & Young. The firm selected 7,821 sites that are visited monthly by at least 39,000 people.