Consumers Demand Companies Do More to Protect Their Privacy; Want Privacy Independently Verified: AICPA/E&Y Post-Sept. 11 Survey


	Home Online Publications The CPA Letter April 2002 Consumers Demand Companies Do More to Protect Their Privacy; Want Privacy Independently Verified: AICPA/E&Y Post-Sept. 11 Survey

Results of a recent Harris Interactive survey conducted for Privacy & American Business, a think-tank devoted to business privacy issues, and sponsored by the AICPA and Ernst & Young show most consumers still do not trust companies to handle their personal information properly. However, independent verification of company privacy policies is the single business action that would satisfy almost two out of three consumers (62%). In fact, 84% think such verification should be a requirement for companies today.

The top three concerns consumers express are that companies will share their information without permission (75%); that their transactions may not be secure (70%); or that hackers could steal their personal data (69%).

Strong majorities want companies to communicate and follow good privacy policies. However, because trust in companies is low, the survey reveals that having a companys privacy practices verified by a third party would lead more than 9 in 10 consumers (91%) to say they would do more business with such a firm.

The survey also identifies the most important elements consumers want verified: adequate security procedures (90%), no release of personal data without permission or unless required by law (89%); limited access within the company (84%); collection of only customer information that a company's privacy policies say it is collecting (84%); and use and sharing of information only according to stated privacy policies (81%).

"The AICPA, on behalf of its members, sponsored this research to better understand consumer preferences and concerns about privacy," said Anthony Pugliese, vice president of member innovation at the AICPA. "Having this information enables CPAs to advise businesses about the opportunities and risks associated with privacy."

Privacy initiatives are a priority of Pugliese's team and aim to develop strategies that establish the AICPA as an important participant in the public policy debate around privacy and the CPA profession as a key privacy resource in the business community. The main strategies to achieve this mission are to create a privacy framework, educate key stakeholders, gain market permission/recognition, develop third-party outreach, and develop product tools and services to meet client needs. The Enterprise-Wide Privacy Task Force was formed in Dec. 2001 to develop a comprehensive new assurance service addressing the complete privacy needs of business and complementing the WebTrust Online Privacy service.