Perspective: Paying For Online Privacy

Reprinted with permission from CNet.com.

Countless studies quote consumers saying they care about their privacy on the Internet. However, simply stating concern about privacy is a far cry from actually taking steps to protect one's own privacy in cyberspace.

Indeed, many consumers do not even check Web site privacy policies when they divulge their sensitive personally identifiable information. Yet, according to a recent report, when consumers are given a specific choice, many may actually pay more money during a transaction in return for privacy protection.

The report, prepared by Lorrie Cranor, who directs the Carnegie Mellon Usable Privacy and Security Labs, documents that consumers would pay an extra 60 cents for privacy protection on purchases of $15. Cranor came to this result by way of a hypothetical experiment.