Privacy Warnings: Experimentally Investigating the Effects on Perceived Risk, Trust, and Privacy Information Quality

Utility that modern smartphone technology provides to individuals is most often enabled by technical capabilities that are privacy-affecting by nature, i.e. smartphone apps are provided with access to a multiplicity of sensitive resources required to implement context-sensitivity or personalization. Due to the ineffectiveness of current privacy risk communication methods applied in smartphone ecosystems, individuals’ risk assessments are biased and accompanied with uncertainty regarding the potential privacy-related consequences of long-term app usage. Warning theory suggests that an explicit communication of potential consequences can reduce uncertainty and enable individuals to make better-informed cost-benefit trade-off decisions. We extend this design theory to the field of information privacy warning design by experimentally investigating the effects of explicitness in privacy warnings on individuals ’ perceived risk and trustworthiness of smartphone apps. Our results suggest that explicitness leads to more accurate risk and trust perceptions and provides an improved foundation for informed decision-making