Individuals are generally concerned about their privacy and may withhold from disclosing their personal information while interacting with online vendors. Withholding personal information can prevent online vendors from developing profiles to match needs and wants. Through a literature review of research on online privacy; we develop an integrative framework of online privacy protection.
Research has shown that privacy concerns act as a hindrance to the growth of electronic commerce (Hoffman, Novak, & Peralta, 1999; Miyazaki & Fernandez, 2001). In countering privacy concerns, the Federal Trade Commission has primarily relied upon fair information practices to guide privacy regulation in the United States (Milne, 2000). Fair information practices include the following: notice of the firm’s information practices regarding what personal information will be collected and how the collected information will be used; choice or consent regarding the secondary use of the information; accessibility of users to view their own data collected by companies; security of the collected data; and enforcement to ensure that companies comply with fair information practices.