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Out-Law News 2 min. read

EU and US web sites fail basic privacy standards


A survey of 751 popular EU and US based web sites for consumers, including 83 based in the UK, suggests that few businesses give users a choice about being added to their mailing lists or having their details passed to third parties in addition to other failures of basic privacy standards.

The findings come from Consumers International, a global coalition of 263 consumer organisations including the UK’s Consumers Association and National Consumer Council. The main findings of the study reveal that existing measures put in place by various governments to protect people's privacy is not adequate.

The survey found that just over two thirds of sites collect some sort of personal information and almost all of these sites asked for details that made it easy to identify and contact the person. The vast majority of sites gave users no choice about being on the site's own mailing list or having their name passed on to affiliates or third parties.

Despite tight EU data protection laws, sites within the EU were found to be no better at telling users how they use their data than sites based in the US. Indeed, Consumers International claims that some of the best privacy policies were found on US sites.

The most popular US sites were more likely than the EU ones to give users a choice about being on the company's mailing list or having their name passed on, despite provisions in EU data protection law which obliges EU-based sites to provide users with a choice.

Only 10% of sites targeting children asked children to get their parents' consent before giving personal information or to tell their parents afterwards.

"Privacy is recognised as a fundamental human right, yet we've found that too many companies collect a lot of unnecessary, very personal information about their customers - and because of inadequate implementation of existing government measures people don't have control over their data," says Anna Fielder, Director of the Office for Developed and Transition Economies of Consumers International. "This widespread neglect of good privacy practice is all the more worrying when you consider that electronic technologies for collection of data develop so rapidly."

Consumers International is calling for policy makers at the national and international level to take urgent action to adopt laws, rules and procedures as necessary to ensure that:

  • Users are given control over the collection, use and disclosure of their personal information and that personal information is only collected and held as long as necessary to fulfil the original purpose for collecting it;
  • Users can easily check, correct or delete any data a sites may hold about them and that it is collected, stored and transmitted in a secure manner appropriate to the sensitivity of the data; and
  • An independent oversight body is established to ensure compliance, provide for adequate sanctions for violations and give cheap and quick access to redress.

It adds that companies immediately need to incorporate internal practices in line with all existing legislation and guidelines regarding privacy of personal data.

The report by Consumers International provides a five-point plan for people to protect themselves from misuse of private information in e-commerce. The plan is:

  • Limit disclosure of your personal information.
  • Set up a separate e-mail account for e-commerce activities.
  • Reject cookies planted in your computer by intrusive businesses.
  • Consider using an internet privacy tool which allows you to surf anonymously.
  • Learn about your legal rights and be prepared to use them.
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