TRUSTe survey shows transparency and choice needed to address growing UK online privacy concerns
Privacy research carried out by TRUSTe, global provider of online privacy management solutions for business, has shown UK consumer concern about online privacy is increasing, with 94 per cent of consumers worried about it, a rise of 54 per cent from this time last year. The TRUSTe 2012 UK Consumer Data Privacy Study was conducted online by Harris Interactive from 31 May to 6 June, just after the enforcement of the EU Cookie Directive began.
As well as an increase in privacy concerns the study also uncovered customers are engaging less with companies they don’t trust, but transparency and consumer choice could improve favourability. On the whole consumers engage less with companies they do not trust leading to a 29 per cent lower purchase rate, 68 per cent lower app downloads and 86 per cent less sharing of information. TRUSTe’s research found that transparency is key if businesses are to address these concerns.
An example given by TRUSTe is, 79 per cent of consumers are aware of online behavioural advertising (OBA), 53 per cent do not like it, and 42 per cent believe that personally identifiable information (PII) is attached to tracking activity. However, favourability towards this kind of advertising almost doubles when consumers are assured that any data that could personally identify them is not used.
Consumers reward companies for good privacy practices with over half more inclined to click on an advertisement that allows them to opt out of online behavioural advertising with 55 per cent more inclined to do business with publishers and advertisers that have the option to opt-out. Findings also show that advertisers can increase favourability by 42 per cent through participation in the EDAA self-regulation programme and businesses can increase trust and engagement through independent privacy certification schemes. 60 per cent of respondents claimed they checked for verification of privacy standards.
Chris Babel, CEO, TRUSTe believes the EU Cookie Directive has “put third party tracking and online behavioural advertising under the spotlight in the UK” and this has “forced advertisers, publishers and brands to consider their data privacy practices”.
He added: “Although our research shows that consumer concern in the UK is growing, it is reassuring to see how positively consumers respond to advertisers who adopt self-regulation schemes such as the EDAA programme and seek out businesses that demonstrate a commitment to good privacy practices through an independent privacy certification programme.”