Louis Harris & Associates and Alan F. Westin.
Commerce, Communication and Privacy Online.
New York: Louis Harris & Associates, 1997.

Executive Summary

A Summary of the Findings

The results of Commerce, Communication, and Privacy Online are based on a national cross-section of 1,009 American computer users 18+ years.

1. Of this total group of computer users, 42% access the Internet at least once a month, and 33% use an online service. Overall, 25% of today's computer users say they both access the Internet and use an online service¹, and 49% say they do neither.

• More than half (56%) report they have seen, read, or heard "a great deal" about the Internet. Younger, better educated, more affluent, and male computer users are more likely to report having seen, read, or heard "a great deal" about the Internet.

• Internet users have been accessing the Internet for an average of 2 years. They spend a mean average of 5.9 hours on the Internet each week, with the median user accessing the Internet for about 2.5 hours. The average online service user has been using an online service for slightly longer, 2.3 years, and spends a mean average of 5.6 hours per week (and a median 2.6 hours) online.

• Internet users express differing levels of attachment to the Internet. This level of attachment as assessed by asking Internet users to select one of three statements describing the role of the Internet in their lives. More than one-third (36%) of Internet users say, "using the Internet has become quite important to [them]." Another 57%, the majority, say the Internet is useful,"but [they] could easily do without it," and only 7% say, ''[they1 can't imagine living without using the Internet regularly."

1)The four online services are America Online, CompuServe, Prodigy, or Microsoft Network. Just over half (5 I %) indicated they use America Online, 33% said Microsoft Network, 11% said CompuServe, and 7% said Prodigy. One in ten online service users (10%) said they don't know which online service they use (Table 1.2). Unlike Internet service providers who only provide access to the Internet, online services also provide unique online environments which are entirely separate from the Internet.

2. Half of those computer users who do not currently access the Internet say they are likely to start in the next year. A similar pattern is observed for those who do not currently use an online service. The factor most likely to influence whether or not the non-users join the online world is privacy protection.

• More than half (54%) of all computer users who are not currently using the Internet say it is likely they will do so in the next year. Of those who say it is unlikely that they will do so, 52% say they would be more likely to do so if "the privacy of [their] personal information and communications would be protected."

• Nearly half of all computer users who are not currently using an online service (46%) say it is likely they will likely do so in the next year . This figure also increases if the privacy of personal information is protected; 48% of those who say it is unlikely that they will start using an online service, say that they would be more likely to do so if their privacy is protected.

The Major Findings

Online Privacy Concerns

3. Fears about online privacy invasions greatly exceed the actual occurrence of those invasions many people worry about the security and confidentiality of their personal information in an online environment, but very few report they have actually been victimized while online.

• Although only 5% of all Internet users say they have been the victim of what they felt was an invasion of privacy while on the Internet, more than half (53%) say they are either "very" concerned (17%) or "somewhat" concerned (36%) that information about which sites they visit will be linked to their e-mail address and disclosed to some other person or organization without their knowledge or consent.

• Similarly, only 7% of online service users say they have been the victim of what they felt was an invasion of their privacy while using their online services, but more than half are either "very" concerned (23%) or "somewhat" concerned (34%) that information about which sites they visit will be become available to some other person or organization without their knowledge or consent.

4. Computer users are more concerned about the conf~dentiality of communicating by e-mail over the Internet than they are about other widely used forms of communication.This concern is greatest among computer users who do not actually communicate via e-mail -they are more than twice as likely as e-mail users to be concerned about this form of communication.

• 59% of Internet users who send and receive e-mail say they are either "very" (22%) or "somewhat" (37%) concerned that the content of what they communicate through the Internet will be obtained by some other person or organization without their knowledge or consent.

• These computer users are relatively less concerned about communicating or sending information by telephone, by fax, and through the U.S. mail (48%, 51%, and 30%, respectively, are either "very" or "somewhat" concerned about communicating these ways).

• Nearly half of all computer users who do not communicate via e-mail (47%) would be "very" concerned about communicating by e-mail through the Internet this figure is more than twice that (22%) for people who do send and receive e-mail.

• Like those who do use e-mail, those who do not are more concerned about e-mail than they are about other forms of communication (28%, 25%, and 21% are "very" concerned about communicating by telephone, fax, and mail, respectively, compared to the 47% who would be "very" concerned about communicating by e-mail).

5. When it comes to the handling of confidential information, computer users have less confidence in online companies than they do in other institutions.

• While more than 75% of computer users are "very" or "somewhat" confident that employers,hospitals and clinics, and banks use, in a proper manner, the personal or confidential information people give them, only 48% express the same confidence in companies providing online services, 46% for companies providing direct Internet services, and 40% for companies offering products and services on the Internet.

• Internet and online service users express higher confidence in direct Internet providers and online service providers than do basic computer users. In total, 52% of Internet and online service users are "very" or "somewhat" confident that companies providing online services use confidential information properly, compared to only 43% of basic computer users.

• Similarly, 52% of Internet users and 50% of online service users say that they are "very" or "somewhat" confident that companies providing direct Internet service treat confidential information properly. Only 41% of basic computer users agree.

6. Computer users' privacy concerns translate into privacy-sensitive behaviors. Of those who use the World Wide Web and have been asked by a site to provide information,the majority have at some point declined to give that information. The majority of those who did not provide the information say they would have provided it if they were aware of, comfortable with, the information use policies of those sites or if they were more familiar with those sites.

• Of the 58% of Web site visitors who have been asked to provide information when visiting a site, 79% have declined at some point to provide that information, and a small percentage (8%) say they have provided false information.

• More than half of Web site visitors (61%) have at some point, however, provided the information requested.

• 71 % of those who have declined to provide the information or had provided false information say they would have supplied what was requested if they had had a relationship with, or had done business with, the company operating the site in the offline world.

• 63% also say they would have supplied what was requested if the site informed them clearly before they supplied the information how the information would be used.

7. Privacy-sensitive online behaviors are practiced among a small proportion of Internet users.

• 12% of Internet users say they have encrypted or coded information sent through the Internet, representing about 5.5 million adults in the United States.

• In addition, 20% of Internet users who say they have participated in chat groups and forums also say they have discussed privacy issues there. This represents 6% of all Internet users and 2.7 million adults in the U.S.

8. Less than one-third of Web site visitors have heard the term "cookies."² Nearly all Web site visitors feel strongly that Web sites should give users advance notice and gain the users' permission before using a cookie tagging process.

• 28% of visitors to Web sites say they have heard the term "cookies" used in reference to Web sites.

• 87% of Internet users who visit the World Wide Web say it is important that Web sites using cookies gain a user's permission before using the cookie tagging process (gaining this permission is "very" important to 66% of Web site visitors and "somewhat" important to another 21%).

• 85% believe it is important that the site tell users in advance how this tagging system will be used and what benefits it could offer (54% think this is "very" important and another 31% think it is "somewhat" important).

2)Cookies" is a technology that allows Web sites to place a unique identifier on a user's hard drive so that information about that user's previous visits to and activities at the site can be recalled at subsequent visits.

Marketing to Computer Users Online and Off

9.Very few computer users who receive unsolicited e-mail messages offering to sell them products and services welcome them, and more than one-third of e-mail users would want their addresses removed from all offers if possible. Acceptance of direct mail offers in the Online world is much higher.

• 43% of Internet users who send and receive e-mail say they sometimes receive unsolicited e-mail messages offering to sell them products and services. Of online service users, 49% say they have received this type of unsolicited e-mail (excluding messages from their online services).

• Of those who did receive these unsolicited messages, 42% say "it's getting to be a real pain and [they] want to stop getting these messages;" another 55% say, "it's a little bothersome, but [they] just delete the ones that don't interest [them];" and very few (3%) say, "[they ] like to receive these messages because some of [the messages] interest [them]."

• Although more than half of computer users (57%) say they are aware of procedures to remove their names from direct postal mail lists, only one-fourth (25%) of recipients of unsolicited e-mail messages are aware of how to remove their e-mail addresses in the online world.

• If given the opportunity, more than one-third (37%) of e-mail users say they would want their e-mail addresses removed from all unsolicited e-mail offers. (Only 17% of computer users would want their names removed from all direct mail lists).

10.Computer users express more interest in Internet software products that will help them become more familiar with the companies they deal with online and with their information use policies, than they are about other Internet software products.³

• Only 2% of Internet users who visit Web sites would be "very" interested in a customized Internet service that would provide tailored offers of products and services. Another 24% would be at least "somewhat" interested.

• Corroborating the importance of privacy to online users more Internet users overall would be interested in the tailored offers service if information policies were explained than would be interested a premium were offered for joining (46% v. 39%).

• Only 6% of Internet users who visit Web sites are interested in software products that would allow them to deposit funds for Internet purchases (another 26% are "somewhat" interested).

• Two-thirds (65%) of Web users say they would be interested in a free and easy to use product that would allow them to record their preferences about how they want their personal information used by business Web sites, in order to have these preferences checked against the actual policies of sites they visit (17% would be "very" interested, and 48% would be "somewhat" interested).

• 45% of Internet users say that independent evaluations of Internet companies would increase their willingness to purchase products and services on the Internet.

3)All questions about Internet products and services were prefaced with the statement, "I am going to ask you questions about some Internet products and services. I am not selling or promoting these products and services. I only want to know your opinions of them."

Group Differences: Light v.Heavy Internet Users

11.Heavy Internet users (those who use the Internet for five hours or more each week) tend to think differently, and experience their online environment differently as compared to lighter users (those who use the Internet for fewer than five hours each week). Their interests in Internet software products also differ from those of lighter users.

• The ability to use the Internet without revealing one's own name is more important to heavy Internet users (62% of those who use the Internet for five or more hours each week identify this as important compared to 52% for lighter users). Heavy users are more likely to have encrypted or coded information they have sent via the Internet (20% v. less than 10% for lighter users). This group of heavy users is also more than twice as likely to have heard the term "cookies" than the lighter users (44% v. 22% for those who use the Internet 2-4 hours per week and 17% for those who use the Internet less).

• Heavier Internet users are more likely than lighter users to receive unsolicited e-mail messages offering products and services (53% v. 45% for those who use the Internet 2-4 hours and 30% for those who use the Internet less), are more aware of how to remove their email names from these unsolicited offers (30% v. 24% and 18%), but are less likely to want to have their e-mail addresses blocked from all offers (32% v. 35% and 47%).

• Interest in Internet services is also higher among heavier users. They are more interested in participating in services that will send them tailored product and service offers. 32% say they are "very" or "somewhat" interested, whereas only 28% of those who use the Internet for 24 hours per week and only 18% of those who use the Internet even less say the same. This higher level of interest extends into services allowing users to deposit funds for online purchases. Nearly half (45%) of heavy users indicate that they are "very" or "somewhat" interested in this type of service, compared to 21% of those who use the Internet for 24 hours each week, and 25% of those who use the Internet fewer than 2 hours each week.

Group Differences: Males v. Females

12.Compared to males, female computer users are less likely to have heard, read,or seen a great deal about the Internet, and are less likely to access the Internet. Of those who are Internet users, females spend less time on the Internet. Females also express greater concern about many online-privacy related issues.

• Anonymity on the Internet is more important to females than to males, with 61% of females identifying this as "very" or "somewhat" important and only 50% of males doing the same.

• Women are more likely than men to view the placement of local and state government records on the Internet as a problem, although those records are part of the public domain (79% v. 72%).

• However, of World Wide Web users, males are much more likely than females to say they visit adult sites (20% v. 8%). The Role of Government

13. When presented with three alternative government approaches to protect privacy on the Internet at this time, the majority of computer users want the government to pass laws now.

• 58% of computer users feel that government should Pass laws now on how personal information can be collected and used on the Internet;

• 24% say the government should recommend privacy standards for the Internet but not pass laws at this time; and

• Only 15% feel that the government should let groups develop voluntary privacy standards for the Internet an monitor any problems, but not pass laws at this time.

• Compared to lighter Internet users, heavier users are less in favor of government regulation of how information can be collected and used on the Internet (46% v. 53%).

• Females are more likely than males to favor having the government pass laws for the regulation of information collection and use on the Internet (67% v. 49%).

14.The computer users most in favor of government regulation are those least familiar with the Internet. Internet users especially those who spend a lot of time on the Internet are relatively less in favor of such regulation when compared to computer users who don't use the Internet.

• Basic computer users (defined as those who do not use the Internet or an online service) are those most likely to favor government regulation (65%), compared to people who use an online service (56%) and people who use the Internet (47%).

• Support for government regulation diminishes as time spent on the Internet increases. Just over half (53%) of Internet users who spend less than two hours on the Internet each week favor government regulation, compared to 46% of those who spend two hours or more. Online and Offline Users' Technology and Business Attitudes

15.Computer users who are not online are nearly twice as likely as online computer users to feel that technology is out of control.

• More than one-half (55%) of basic computer users agree that technology has almost gotten out of control, with one-quarter (25%) agreeing "strongly." Only 12% of Internet users and 14% of online service users also agree "strongly" with this statement.

• Basic computer users are more likely than online computer users to think that business organizations ask for too much personal information from consumers (41% agree "strongly" v. 34% among online computer users).

• 43% of basic computer users agree that consumers have lost control over how businesses use and circulate their personal information. Only 37% of Internet users and 36% of online service users also agree.

16. Lower cost, control over businesses sending marketing messages, and ease of use are other factors that computer users say will increase the likelihood that they will begin to use the Internet or an online service.

• Of those who say it is unlikely that they will start to use the Internet in the next year, 44% say it would be more likely if the cost were reduced, 38% say this if they have control over marketing messages, and 37% say the likelihood would increase if the use were less complicated. The figures for those who say they are unlikely to start using an online service are 42%, 36%, and 33% respectively.

17. The majority of computer users think it is unacceptable for companies to ask children on the Internet to provide personal information.

• 59% of all computer users say it is not acceptable for companies to ask children to provide their e-mail names to gather statistics on how many children visit the site and what they do there. Nearly four in ten (39%) find this practice "not at all" acceptable (another 20% say this is "not very" acceptable).

• Almost as many, 58%, say it is not acceptable to ask children to provide their e-mail names and their interests and activities in order to gather information for product improvement. 38%, say this practice is "not at all" acceptable and another 20% say this is "not very"acceptable.

• Nearly three-quarters (73%) say it is not acceptable to ask children to provide their real names and addresses when they purchase products or register to use a site, and use this information only within that company. More than half (54%) of computer users say this is "not at all" acceptable (another 19% say this is "not very" acceptable).

• Nine in ten (90%) computer users say it is "not at all" or "not very" acceptable for Internet companies to ask children to provide their real names and addresses when they purchase products or register to use a site, and rent or sell those names and addresses to other companies offering products of potential interest to those children. Three-quarters of computer users (74%) find this practice "not at all" acceptable and another 16% say this is "not very" acceptable. Privacy, Children, and the Internet

18. Computer users are divided, however, on whether there is or is not a significant difference between advertisers who collect personal information from children for marketing purposes through sources like comic books, magazines, and kids clubs, and collecting similar information from children using the Internet.

• 46% say there is a significant difference between collecting marketing information from children offline and online, and 45% say there is not. Another 9% are not certain.

19. The majority of computer users are not particularly trusting of Internet companies that market to or collect information from children. Additionally, nearly all feel that if these companies violate their stated policies, they should be held legally liable.

• Only 2% of computer users are "very" confident and just 22% are "somewhat" confident that Internet companies would follow their stated policies for the use of information they collect from children on the Internet.

• More than nine in ten computer users (94%) say that if companies collecting information from children violate their stated polices, they should be held legally liable.