Consumer Privacy Insights and Trends – Q2 2012

TRUSTe, a leading privacy management solutions provider, recently released the second Consumer Confidence Edition (Q2 2012) of its ongoing Privacy Index Series measuring privacy concerns of U.S. consumers and their business impact. Conducted online by Harris Interactive on behalf of TRUSTe, the privacy study shows that consumer concerns and mistrust remain high and that companies without good privacy practices continue to sacrifice customer trust.

Specifically, the Q2 findings show that 91 percent of U.S. online adults worry about their privacy online in general; 88 percent avoid doing business with companies that don’t protect their privacy; and 53 percent don’t completely trust companies with their personal information online.

“TRUSTe’s findings show that consumer worry and mistrust remain a clear and present danger in the online world,” said Chris Babel, CEO of TRUSTe. “To capitalize on growing online and mobile technologies, businesses must act now to dispel these consumer concerns. By delivering transparency and choice, good privacy management practices have been shown to build customer trust, allowing businesses to strengthen their brand’s reputation while pursuing new online opportunities.”

TRUSTe’s Privacy Index Series highlights the trust gap that exists between consumers and businesses and reinforces the urgent need for additional privacy education. To fill this need, TRUSTe has introduced two new educational campaigns, including a partnership with the Application Developers Alliance for a multi-city Privacy Summit Series for application developers, as well as ongoing privacy management workshops.

Click through for results from a study on consumer privacy confidence, conducted by Harris Interactive on behalf of TRUSTe.

Ninety-one percent of consumers worry about their privacy online (consistent with Q1).

Of the 91 percent, 23 percent of consumers ‘always’ worry about online privacy; 22 percent worry about it ‘frequently;’ and 46 percent worry about it ‘sometimes.’ Parents with teens, college graduates and full-time employees worry the most about privacy.

Consumer mistrust increased 12 percent from Q1 2012 to Q2 2012; 53 percent of consumers indicated they do not completely trust companies with their personal information online.

An overwhelming 93 percent of consumers believe companies have a responsibility to protect their privacy online.

Eight-eight percent of consumers avoid doing business with companies that do not protect their privacy (consistent with findings in Q1).

The tendency to avoid companies with bad privacy practices is slightly higher among more educated consumers.