2. Lorrie Cranor http://lorrie.cranor.org/ 1 Privacy Week 5

3. Lorrie Cranor http://lorrie.cranor.org/ 2 What is privacy?

4. Lorrie Cranor http://lorrie.cranor.org/ 3 What does privacy mean to you? How would you define privacy? What does it meant to you for something to be private?

5. Lorrie Cranor http://lorrie.cranor.org/ 4 Concept versus right Privacy as concept What is it How and why it is valued Privacy as right How it is (or should be) protected  By law  By policy  By technology

6. Lorrie Cranor http://lorrie.cranor.org/ 5 Hard to define “Privacy is a value so complex, so entangled in competing and contradictory dimensions, so engorged with various and distinct meanings, that I sometimes despair whether it can be usefully addressed at all.” Robert C. Post, Three Concepts of Privacy, 89 Geo. L.J. 2087 (2001).

7. Lorrie Cranor http://lorrie.cranor.org/ 6 Some definitions from the literature Personhood Intimacy Secrecy Contextual integrity Limited access to the self Control over information

8. Lorrie Cranor http://lorrie.cranor.org/ 7 Limited access to self “Being alone.” - Shane (age 4) “the right to be let alone” - Samuel D. Warren and Louis D. Brandeis, The Right to Privacy, 4 Harv. L. Rev. 193 (1890) “our concern over our accessibility to others: the extent to which we are known to others, the extent to which others have physical access to us, and the extent to which we are the subject of others attention. - Ruth Gavison, “Privacy and the Limits of the Law,” Yale Law Journal 89 (1980)

9. Lorrie Cranor http://lorrie.cranor.org/ 8 Control over information “Privacy is the claim of individuals, groups or institutions to determine for themselves when, how, and to what extent information about them is communicated to others.” “…each individual is continually engaged in a personal adjustment process in which he balances the desire for privacy with the desire for disclosure and communication….” Alan Westin, Privacy and Freedom, 1967

10. Lorrie Cranor http://lorrie.cranor.org/ 9 Realizing limited access and control Limited access Laws to prohibit or limit collection, disclosure, contact Technology to facilitate anonymous transactions, minimize disclosure Control Laws to mandate choice (opt-in/opt-out) Technology to facilitate informed consent, keep track of and enforce privacy preferences

11. Lorrie Cranor http://lorrie.cranor.org/ 10 Westin’s four states of privacy Solitude individual separated from the group and freed from the observation of other persons Intimacy individual is part of a small unit Anonymity individual in public but still seeks and finds freedom from identification and surveillance Reserve the creation of a psychological barrier against unwanted intrusion - holding back communication

12. Lorrie Cranor http://lorrie.cranor.org/ 11 Britney Spears: “We just need privacy” “You have to realize that we're people and that we need, we just need privacy and we need our respect, and those are things that you have to have as a human being.” — Britney Spears 15 June 2006 NBC Dateline http://www.cnn.com/2006/SHOWBIZ/Music/06/15/people.spears.reut/index.html

13. Only a goldfish can live without privacy… Is this true? Can humans live without privacy?

14. Lorrie Cranor http://lorrie.cranor.org/ 13 Privacy as animal instinct Eagles eating a deer carcass http://www.learner.org/jnorth/tm/eagle/CaptureE63.html Is privacy necessary for species survival?

15. Lorrie Cranor http://lorrie.cranor.org/ 14 Privacy laws and self-regulation

16. Lorrie Cranor http://lorrie.cranor.org/ 15 Terminology Data subject The person whose data is collected Data controller The entity responsible for collected data Primary use of personal information (primary purpose) Using information for the purposes intended by the data subjects when they provided the information Secondary use of personal information (secondary purpose) Using information for purposes that go beyond the primary purpose

17. Lorrie Cranor http://lorrie.cranor.org/ 16 OECD fair information principles http://www.datenschutz- berlin.de/gesetze/internat/ben.htm Collection limitation Data quality Purpose specification Use limitation Security safeguards Openness Individual participation Accountability

18. Lorrie Cranor http://lorrie.cranor.org/ 17 US FTC simplified principles Notice and disclosure Choice and consent Data security Data quality and access Recourse and remedies US Federal Trade Commission, Privacy Online: A Report to Congress (June 1998), http://www.ftc.gov/reports/privacy3/

19. Lorrie Cranor http://lorrie.cranor.org/ 18 Privacy laws around the world Privacy laws and regulations vary widely throughout the world US has mostly sector-specific laws, with relatively minimal protections - often referred to as “patchwork quilt” Federal Trade Commission has jurisdiction over fraud and deceptive practices Federal Communications Commission regulates telecommunications European Data Protection Directive requires all European Union countries to adopt similar comprehensive privacy laws that recognize privacy as fundamental human right Privacy commissions in each country (some countries have national and state commissions) Many European companies non-compliant with privacy laws (2002 study found majority of UK web sites non-compliant)

20. Lorrie Cranor http://lorrie.cranor.org/ 19 US law basics Constitutional law governs the rights of individuals with respect to the government Tort law governs disputes between private individuals or other private entities

21. Lorrie Cranor http://lorrie.cranor.org/ 20 US Constitution No explicit privacy right, but a zone of privacy recognized in its penumbras, including 1st amendment (right of association) 3rd amendment (prohibits quartering of soldiers in homes) 4th amendment (prohibits unreasonable search and seizure) 5th amendment (no self-incrimination) 9th amendment (all other rights retained by the people) Penumbra: “fringe at the edge of a deep shadow create by an object standing in the light” (Smith 2000, p. 258, citing Justice William O. Douglas in Griswold v. Connecticut)

22. Lorrie Cranor http://lorrie.cranor.org/ 21 Federal statutes and state laws Federal statutes Tend to be narrowly focused State law State constitutions may recognize explicit right to privacy (Georgia, Hawaii) State statutes and common (tort) law Local laws and regulations (for example: ordinances on soliciting anonymously)

23. Lorrie Cranor http://lorrie.cranor.org/ 22 Four aspects of privacy tort You can sue for damages for the following torts (Smith 2000, p. 232-233) Disclosure of truly intimate facts  May be truthful  Disclosure must be widespread, and offensive or objectionable to a person of ordinary sensibilities  Must not be newsworthy or legitimate public interest False light  Personal information or picture published out of context Misappropriation (or right of publicity)  Commercial use of name or face without permission Intrusion into a person’s solitude

24. Lorrie Cranor http://lorrie.cranor.org/ 23 Some US privacy laws Bank Secrecy Act, 1970 Fair Credit Reporting Act, 1971 Privacy Act, 1974 Right to Financial Privacy Act, 1978 Cable TV Privacy Act, 1984 Video Privacy Protection Act, 1988 Family Educational Right to Privacy Act, 1993 Electronic Communications Privacy Act, 1994 Freedom of Information Act, 1966, 1991, 1996

25. Lorrie Cranor http://lorrie.cranor.org/ 24 US law – recent additions HIPAA (Health Insurance Portability and Accountability Act, 1996) When implemented, will protect medical records and other individually identifiable health information COPPA (Children‘s Online Privacy Protection Act, 1998) Web sites that target children must obtain parental consent before collecting personal information from children under the age of 13 GLB (Gramm-Leach-Bliley-Act, 1999) Requires privacy policy disclosure and opt-out mechanisms from financial service institutions

26. Lorrie Cranor http://lorrie.cranor.org/ 25 Safe harbor Membership US companies self-certify adherence to requirements Dept. of Commerce maintains signatory list http://www.export.gov/safeharbor/ Signatories must provide  notice of data collected, purposes, and recipients  choice of opt-out of 3rd-party transfers, opt-in for sensitive data  access rights to delete or edit inaccurate information  security for storage of collected data  enforcement mechanisms for individual complaints Approved July 26, 2000 by EU reserves right to renegotiate if remedies for EU citizens prove to be inadequate

27. Lorrie Cranor http://lorrie.cranor.org/ 26 Voluntary privacy guidelines Direct Marketing Association Privacy Promise http://www.thedma.org/library/ privacy/privacypromise.shtml Network Advertising Initiative Principles http://www.networkadvertising.org/ CTIA Location-based privacy guidelines http://www.wow- com.com/news/press/body.cfm?record_id=907

28. Lorrie Cranor http://lorrie.cranor.org/ 27

29. Lorrie Cranor http://lorrie.cranor.org/ 28 Chief privacy officers Companies are increasingly appointing CPOs to have a central point of contact for privacy concerns Role of CPO varies in each company Draft privacy policy Respond to customer concerns Educate employees about company privacy policy Review new products and services for compliance with privacy policy Develop new initiatives to keep company out front on privacy issue Monitor pending privacy legislation

30. Lorrie Cranor http://lorrie.cranor.org/ 29 Seal programs TRUSTe – http://www.truste.org BBBOnline – http://www.bbbonline.org CPA WebTrust – http://www.cpawebtrust.org/ Japanese Privacy Mark http://privacymark.org/

31. Lorrie Cranor http://lorrie.cranor.org/ 30 Seal program problems Certify only compliance with stated policy Limited ability to detect non-compliance Minimal privacy requirements Don’t address privacy issues that go beyond the web site Nonetheless, reporting requirements are forcing licensees to review their own policies and practices and think carefully before introducing policy changes

32. Lorrie Cranor http://lorrie.cranor.org/ 31 Privacy policies Policies let consumers know about site’s privacy practices Consumers can then decide whether or not practices are acceptable, when to opt-in or opt-out, and who to do business with The presence of privacy policies increases consumer trust What are some problems with privacy policies?

33. Lorrie Cranor http://lorrie.cranor.org/ 32 Privacy policy problems BUT policies are often difficult to understand hard to find take a long time to read change without notice

34. Lorrie Cranor http://lorrie.cranor.org/ 33 Privacy policy components Identification of site, scope, contact info Types of information collected Including information about cookies How information is used Conditions under which information might be shared Information about opt-in/opt-out Information about access Information about data retention policies Information about seal programs Security assurances Children’s privacy There is lots of information to convey -- but policy should be brief and easy-to-read too! What is opt-in? What is opt-out?

35. Lorrie Cranor http://lorrie.cranor.org/ 34 How are online privacy concerns different from offline privacy concerns?

36. Lorrie Cranor http://lorrie.cranor.org/ 35 Web privacy concerns Data is often collected silently Web allows large quantities of data to be collected inexpensively and unobtrusively Data from multiple sources may be merged Non-identifiable information can become identifiable when merged Data collected for business purposes may be used in civil and criminal proceedings Users given no meaningful choice Few sites offer alternatives

37. Lorrie Cranor http://lorrie.cranor.org/ 36 Browser Chatter Browsers chatter about IP address, domain name, organization, Referring page Platform: O/S, browser What information is requested  URLs and search terms Cookies To anyone who might be listening End servers System administrators Internet Service Providers Other third parties  Advertising networks Anyone who might subpoena log files later

38. Lorrie Cranor http://lorrie.cranor.org/ 37 Typical HTTP request with cookie GET /retail/searchresults.asp?qu=beer HTTP/1.0 Referer: http://www.us.buy.com/default.asp User-Agent: Mozilla/4.75 [en] (X11; U; NetBSD 1.5_ALPHA i386) Host: www.us.buy.com Accept: image/gif, image/jpeg, image/pjpeg, */* Accept-Language: en Cookie: buycountry=us; dcLocName=Basket; dcCatID=6773; dcLocID=6773; dcAd=buybasket; loc=; parentLocName=Basket; parentLoc=6773; ShopperManager%2F=ShopperManager%2F=66FUQU LL0QBT8MMTVSC5MMNKBJFWDVH7; Store=107; Category=0

39. Lorrie Cranor http://lorrie.cranor.org/ 38 Referer log problems GET methods result in values in URL These URLs are sent in the referer header to next host Example: http://www.merchant.com/cgi_bin/o rder?name=Tom+Jones&address=here +there&credit+card=234876923234& PIN=1234&->index.html Access log example

40. Lorrie Cranor http://lorrie.cranor.org/ 39 Cookies What are cookies? What are people concerned about cookies? What useful purposes do cookies serve?

41. Lorrie Cranor http://lorrie.cranor.org/ 40 Cookies 101 Cookies can be useful Used like a staple to attach multiple parts of a form together Used to identify you when you return to a web site so you don’t have to remember a password Used to help web sites understand how people use them Cookies can do unexpected things Used to profile users and track their activities, especially across web sites

42. Lorrie Cranor http://lorrie.cranor.org/ 41 How cookies work – the basics A cookie stores a small string of characters A web site asks your browser to “set” a cookie Whenever you return to that site your browser sends the cookie back automatically browsersite Please store cookie xyzzy First visit to site browsersite Here is cookie xyzzy Later visits

43. Lorrie Cranor http://lorrie.cranor.org/ 42 How cookies work – advanced Cookies are only sent back to the “site” that set them – but this may be any host in domain Sites setting cookies indicate path, domain, and expiration for cookies Cookies can store user info or a database key that is used to look up user info – either way the cookie enables info to be linked to the current browsing session Database Users … Email … Visits … Send me with any request to x.com until 2008 Send me with requests for index.html on y.x.com for this session only User=Joe Email= Joe@ x.com Visits=13 User=4576 904309

44. Lorrie Cranor http://lorrie.cranor.org/ 43 Cookie terminology Cookie Replay – sending a cookie back to a site Session cookie – cookie replayed only during current browsing session Persistent cookie – cookie replayed until expiration date First-party cookie – cookie associated with the site the user requested Third-party cookie – cookie associated with an image, ad, frame, or other content from a site with a different domain name that is embedded in the site the user requested Browser interprets third-party cookie based on domain name, even if both domains are owned by the same company

45. Lorrie Cranor http://lorrie.cranor.org/ 44 Web bugs Invisible “images” (1-by-1 pixels, transparent) embedded in web pages and cause referer info and cookies to be transferred Also called web beacons, clear gifs, tracker gifs,etc. Work just like banner ads from ad networks, but you can’t see them unless you look at the code behind a web page Also embedded in HTML formatted email messages, MS Word documents, etc. For software to detect web bugs see: http://www.bugnosis.org

46. Lorrie Cranor http://lorrie.cranor.org/ 45 How data can be linked Every time the same cookie is replayed to a site, the site may add information to the record associated with that cookie Number of times you visit a link, time, date What page you visit What page you visited last Information you type into a web form If multiple cookies are replayed together, they are usually logged together, effectively linking their data Narrow scoped cookie might get logged with broad scoped cookie

47. Lorrie Cranor http://lorrie.cranor.org/ 46 Ad networks Ad company can get your name and address from CD order and link them to your search Ad search for medical information set cookie buy CD replay cookie Search ServiceCD Store

48. Lorrie Cranor http://lorrie.cranor.org/ 47 What ad networks may know… Personal data: Email address Full name Mailing address (street, city, state, and Zip code) Phone number Transactional data: Details of plane trips Search phrases used at search engines Health conditions “It was not necessary for me to click on the banner ads for information to be sent to DoubleClick servers.” – Richard M. Smith

49. Lorrie Cranor http://lorrie.cranor.org/ 48 Online and offline merging In November 1999, DoubleClick purchased Abacus Direct, a company possessing detailed consumer profiles on more than 90% of US households. In mid-February 2000 DoubleClick announced plans to merge “anonymous” online data with personal information obtained from offline databases By the first week in March 2000 the plans were put on hold Stock dropped from $125 (12/99) to $80 (03/00)

50. Lorrie Cranor http://lorrie.cranor.org/ 49 Offline data goes online… The Cranor family’s 25 most frequent grocery purchases (sorted by nutritional value)!

51. Lorrie Cranor http://lorrie.cranor.org/ 50 Subpoenas Data on online activities is increasingly of interest in civil and criminal cases The only way to avoid subpoenas is to not have data In the US, your files on your computer in your home have much greater legal protection that your files stored on a server on the network

53. Lorrie Cranor http://lorrie.cranor.org/ 52 Original Idea behind P3P A framework for automated privacy discussions Web sites disclose their privacy practices in standard machine-readable formats Web browsers automatically retrieve P3P privacy policies and compare them to users’ privacy preferences Sites and browsers can then negotiate about privacy terms P3P: Introduction

54. Lorrie Cranor http://lorrie.cranor.org/ 53 P3P history Idea discussed at November 1995 FTC meeting Ad Hoc “Internet Privacy Working Group” convened to discuss the idea in Fall 1996 W3C began working on P3P in Summer 1997 Several working groups chartered with dozens of participants from industry, non-profits, academia, government Numerous public working drafts issued, and feedback resulted in many changes Early ideas about negotiation and agreement ultimately removed Automatic data transfer added and then removed Patent issue stalled progress, but ultimately became non-issue P3P issued as official W3C Recommendation on April 16, 2002 http://www.w3.org/TR/P3P/ P3P: Introduction

55. Lorrie Cranor http://lorrie.cranor.org/ 54 P3P1.0 – A first step Offers an easy way for web sites to communicate about their privacy policies in a standard machine-readable format Can be deployed using existing web servers This will enable the development of tools that: Provide snapshots of sites’ policies Compare policies with user preferences Alert and advise the user P3P: Introduction

56. Lorrie Cranor http://lorrie.cranor.org/ 55 The basics P3P provides a standard XML format that web sites use to encode their privacy policies Sites also provide XML “policy reference files” to indicate which policy applies to which part of the site Sites can optionally provide a “compact policy” by configuring their servers to issue a special P3P header when cookies are set No special server software required User software to read P3P policies called a “P3P user agent” P3P: Introduction

57. Lorrie Cranor http://lorrie.cranor.org/ 56 What’s in a P3P policy? Name and contact information for site The kind of access provided Mechanisms for resolving privacy disputes The kinds of data collected How collected data is used, and whether individuals can opt-in or opt-out of any of these uses Whether/when data may be shared and whether there is opt-in or opt-out Data retention policy P3P: Enabling your web site – overview and options

58. P3P/XML encoding <POLICY discuri="http://p3pbook.com/privacy.html" name="policy"> <DATA ref="#business.contact-info.online.email">privacy@p3pbook.com <DATA ref="#business.contact-info.online.uri">http://p3pbook.com/ Web Privacy With P3P We keep standard web server logs. P3P version Location of human-readable privacy policy P3P policy name Site’s name and contact info Access disclosure Statement Human-readable explanation How data may be used Data recipients Data retention policy Types of data collected

59. Lorrie Cranor http://lorrie.cranor.org/ 58 P3P1.0 Spec Defines A standard vocabulary for describing set of uses, recipients, data categories, and other privacy disclosures A standard schema for data a Web site may wish to collect (base data schema) An XML format for expressing a privacy policy in a machine readable way A means of associating privacy policies with Web pages or sites A protocol for transporting P3P policies over HTTP P3P: Introduction

60. Lorrie Cranor http://lorrie.cranor.org/ 59 A simple HTTP transaction Web Server GET /index.html HTTP/1.1 Host: www.att.com... Request web page HTTP/1.1 200 OK Content-Type: text/html... Send web page P3P: Introduction

61. Lorrie Cranor http://lorrie.cranor.org/ 60 … with P3P 1.0 added Web Server GET /w3c/p3p.xml HTTP/1.1 Host: www.att.com Request Policy Reference File Send Policy Reference File GET /index.html HTTP/1.1 Host: www.att.com... Request web page HTTP/1.1 200 OK Content-Type: text/html... Send web page Request P3P PolicySend P3P Policy P3P: Introduction

62. Lorrie Cranor http://lorrie.cranor.org/ 61 Transparency P3P clients can check a privacy policy each time it changes P3P clients can check privacy policies on all objects in a web page, including ads and invisible images http://adforce.imgis.com/?adlink|2|68523|1|146|ADFORCE http://www.att.com/accessatt/ P3P: Introduction

63. Lorrie Cranor http://lorrie.cranor.org/ 62 P3P in IE6 Privacy icon on status bar indicates that a cookie has been blocked – pop-up appears the first time the privacy icon appears Automatic processing of compact policies only; third-party cookies without compact policies blocked by default P3P: Introduction

64. Lorrie Cranor http://lorrie.cranor.org/ 63 Users can click on privacy icon for list of cookies; privacy summaries are available at sites that are P3P-enabled P3P: Introduction

65. Lorrie Cranor http://lorrie.cranor.org/ 64 Privacy summary report is generated automatically from full P3P policy P3P: Introduction

66. Lorrie Cranor http://lorrie.cranor.org/ 65 P3P in Netscape 7 Preview version similar to IE6, focusing, on cookies; cookies without compact policies (both first-party and third-party) are “flagged” rather than blocked by default Indicates flagged cookie P3P: Introduction

67. Lorrie Cranor http://lorrie.cranor.org/ 66 Users can view English translation of (part of) compact policy in Cookie Manager P3P: Introduction

68. Lorrie Cranor http://lorrie.cranor.org/ 67 A policy summary can be generated automatically from full P3P policy P3P: Introduction

69. Lorrie Cranor http://lorrie.cranor.org/ 68 Privacy Bird Free download of beta from http://privacybird.org/http://privacybird.org/ Origninally developed at AT&T Labs Released as open source “Browser helper object” for IE6 Reads P3P policies at all P3P-enabled sites automatically Bird icon at top of browser window indicates whether site matches user’s privacy preferences Clicking on bird icon gives more information

70. Chirping bird is privacy indicator

71. Red bird indicates mismatch

72. Check embedded content too

73. Privacy settings

74. Example: Sending flowers

77. Lorrie Cranor http://lorrie.cranor.org/ 76 Privacy Finder Prototype developed at AT&T Labs, improved and deployed by CUPS Uses Google or Yahoo! API to retrieve search results Checks each result for P3P policy Evaluates P3P policy against user’s preferences Reorders search results Composes search result page with privacy annotations next to each P3P-enabled result Users can retrieve “Privacy Report” similar to Privacy Bird policy summary

78. Demo

79. Lorrie Cranor http://lorrie.cranor.org/ 78 Evaluating Privacy Finder Have enough sites adopted P3P for Privacy Finder to be useful? S. Egelman, L. Cranor, and A. Chowdhury. An Analysis of P3P-Enabled Web Sites among Top-20 Search Results. Proceedings of the Eighth International Conference on Electronic Commerce August 14-16, 2006, Fredericton, New Brunswick, Canada. Will the prominent display of privacy information cause consumers to take privacy into account when making online purchasing decisions? J. Gideon, S. Egelman, L. Cranor, and A. Acquisti. Power Strips, Prophylactics, and Privacy, Oh My! In Proceedings of the 2006 Symposium On Usable Privacy and Security, 12-14 July 2006, Pittsburgh, PA. J. Tsai, S. Egelman, L. Cranor, and A. Acquisti. The Effect of Online Privacy Information on Purchasing Behavior: An Experimental Study. Workshop on the Economics of Information Security, June 7-8, 2007, Pittsburgh, PA.

80. Lorrie Cranor http://lorrie.cranor.org/ 79 P3P adoption study Compiled two lists of search terms: Typical: 20,000 terms sampled from week of AOL user queries Ecommerce: 940 terms screen scraped from Froogle front page Submitted search terms to Google, Yahoo!, and AOL search engines and collected top 20 results for each term Checked each result for P3P policy and evaluated policies Checked for P3P policies on 30,000 domains most clicked on by AOL search engine users

81. Lorrie Cranor http://lorrie.cranor.org/ 80 Frequency of P3P-enabled hits P3P-enabled top-20 search results Typical search terms: 10% E-commerce search terms: 21% Searches that return at least one P3P-enabled results In top 10 results: 68% In top 20 results: 83% AOL users will find sites with “good” privacy policies in first 2 pages of results about 1/3 of the time We’ve also collected data about types of privacy practices, types of sites that have adopted P3P, and errors in P3P policies

82. Lorrie Cranor http://lorrie.cranor.org/ 81 Results: Most popular P3P policies Typical Terms http://privacy.yahoo.com/ http://about.com/ http://privacy.msn.com/ http://disney.go.com/ http://images.rootsweb.com/ http://adserver.ign.com/ http://www.nlm.nih.gov/ http://www.bizrate.com/ http://www.superpages.com/ http://www.shopping.com/ Ecommerce Terms http://privacy.yahoo.com/ http://about.com/ http://www.bizrate.com/ http://www0.shopping.com/ http://www.shopping.com/ http://www.pricegrabber.com/ http://www.cpsc.gov/ http://www.overstock.com/ http://www.cooking.com/ http://www.altrec.com/

83. Lorrie Cranor http://lorrie.cranor.org/ 82 Does Privacy Finder influence purchases? Online shopping studies Pay participants to make online purchases with their own credit cards Some use Privacy Finder and some use generic search engine Experiment with privacy sensitivity of purchase and price sensitivity Lab studies  Study of college students purchasing power strips and condoms, no price incentive (reimburse cost)  Study of Pittsburgh residents purchasing batteries and sex toys, with price incentive (keep the change)  Larger study testing additional conditions planned Privacy Finder field study planned

84. Lorrie Cranor http://lorrie.cranor.org/ 83 Lab study design 16 participants in each condition Condition 1: No information Condition 2: Irrelevant information Condition 3: Privacy information Products Non-privacy Sensitive - batteries Privacy sensitive - sex toy Participants paid fixed amount and told to “keep the change”

85. Privacy information condition Privacy premium: $0.69 4.8% Privacy premium: $0.69 4.8%

86. Irrelevant information condition

87. No information condition

88. BatteriesSex Toy Results

89. Lorrie Cranor http://lorrie.cranor.org/ 88 Conclusions Accessible privacy information affects consumer behavior Consumers willing to pay for better privacy Privacy Finder helps users make privacy informed decisions

90. Lorrie Cranor http://lorrie.cranor.org/ 89 Why web sites adopt P3P Demonstrate corporate leadership on privacy issues Show customers they respect their privacy Demonstrate to regulators that industry is taking voluntary steps to address consumer privacy concerns Distinguish brand as privacy friendly Prevent IE6 from blocking their cookies Anticipation that consumers will soon come to expect P3P on all web sites Individuals who run sites value personal privacy P3P: Introduction

91. Lorrie Cranor http://lorrie.cranor.org/ 90 P3P early adopters News and information sites – CNET, About.com, BusinessWeek Search engines – Yahoo, Lycos Ad networks – DoubleClick, Avenue A Telecom companies – AT&T Financial institutions – Fidelity Computer hardware and software vendors – IBM, Dell, Microsoft, McAfee Retail stores – Fortunoff, Ritz Camera Government agencies – FTC, Dept. of Commerce, Ontario Information and Privacy Commissioner Non-profits - CDT P3P: Introduction

92. Lorrie Cranor http://lorrie.cranor.org/ 91 Impacts Some companies that P3P-enable think about privacy in new ways and change their practices Systematic assessment of privacy practices Concrete disclosures – less wiggle room Disclosures about areas previously not discussed in privacy policy Hopefully we will see greater transparency, more informed consumers, and ultimately better privacy policies P3P: The future