1 PRIVACY IN E-COMMERCE: Stated Preferences vs. Actual Behavior by

In times of ubiquitous electronic communication and increasing industry pressure for standard electronic authentication, the maintenance of privacy, or “the right to be left alone ” becomes a subject of increasing concern. The possibility of a “transparent human, ” whose vital information is up for grabs, can most easily be envisioned in the realm of e-commerce, due in part to the large amounts of data available, and in part to the high payoffs expected from using this data for marketing purposes. Questionnaire-based surveys suggest many people strongly oppose this trend. For example, 75 % of German Internet users surveyed in [5] professed some fear their privacy may be compromised when surfing the Internet; 60 % had avoided a Web site in order to protect privacy; and 47 % sometimes provided false data. Similar results have been obtained in other countries: 82 % of online users have refused to give personal information; and 34 % have lied when asked about their personal habits and preferences [12]. The use of aliases, including obvious ones such as “Donald Duck ” is commonplace. The integrity and efficiency of commercial Web sites ’ data protection measures are widely doubted. Given these widespread concerns about personal privacy in