PRIVACY PROTECTION AND THE LAW

Approaches to privacy can, broadly, be divided into two categories: free market and consumer protection. In a free market approach, commercial entities are largely allowed to do what they wished, with the expectation that the consumers will choose to do the business with the corporations that respect the privacy to a desired degree. If some companies are not sufficiently respectful of privacy, they will lose market share. Such an approach may be limited by lack of competition in the market, by enterprises not offering privacy options favorable to the user, or by lack of information about actual privacy practices. Claims of privacy protection made by companies may be difficult for consumers to verify, except when they have already been violated.

In a consumer protection approach, in contrast, it is acknowledged that individuals may not have the time or knowledge to make informed choices, or may not have reasonable alternatives available. This approach advocates greater government definition and enforcement of privacy standards.greater government definition and enforcement of privacy standards.