8PRIVACY AND SECURITY IN E-BUSINESSPRIVACY ON THE WEB: AN EXAMINATION OF USER CONCERNS, TECHNOLOGY, AND IMPLICATIONS FOR BUSINESS ORGANIZATIONS AND INDIVIDUALS

Individual privacy concerns significantly affect consumer willingness to engage in electronic commerce over the Internet. This article explores privacy concerns associated with the imple-mentation of new information technology and introduces a new concept termed the “informa-tion technology privacy cycle. ” This article also examines individual privacy on the Web, including technologies employed for collecting and protecting information on the Web, and the success of legal and technical remedies. Also assessed is the future potential of technology-based solutions through a focused examination of the Platform for Privacy Preferences as well as a discussion of the practical and theoretical implications for business organizations and individuals. N 1997, DAVID CHAUM, FOUNDER OF DigiCash, identified three technical barri-ers to the continued widespread adop-tion of electronic commerce on the Internet, including ease of use, access to the hardware needed to participate, and privacy.1 Privacy concerns remain a significant inhibitor preventing more extensive use of the Internet for conducting business-to-consumer (B2C) E-commerce. Privacy pertains to the protection with a means to more effectively target and seg-ment its market. Sellers of information goods find it advantageous to segment their markets based on observable characteristics or revealed consumer behaviors that can be used to in-crease profits.2 Recent revelations about the controversial information-gathering capabili-ties and sharing policies of firms conducting business over the Internet have heightened public interest in privacy. In 1999, DoubleClic