Sounds great, doesn’t it?

Unfortunately, technology with these capabilities won’t be available until an unknown date in the future. In the meantime, loss of personal privacy ranks as the number-one concern for the 21^st Century in a Wall Street Journal/NBC poll. News of popular technologies that collect information on users without their knowledge is reported almost on a weekly basis. In late November, privacy watchers reported that Comet Cursor, a free downloadable program that allows users to change their mouse arrow to an animated character, collected information on every move surfers then made over the Internet and sent that information back to the company. Intel, too, received much criticism when their Pentium III processor hit the market. The company had placed an embedded, trackable serial number on its processor, which raised serious privacy concerns among computer users.

Confusing to Web site owners, too, is the value consumers place on free "stuff". The demand for free information on the Internet is part of what has motivated Web site owners to sell information gathered from their sites. In addition, users willingly give away personal information to computer manufacturers in exchange for "free" personal computers. The nonprofit think tank Privacy and American Business found that only 12 percent of those surveyed found the exchange of free information a violation of privacy. The mixed messages consumers send to Web site owners understandably causes confusion about what is "acceptable" gathering and use of consumer information.

Privacy issues are not limited to Web site operators, either. According to a survey by the American Management Association, 27 percent of companies are reading their employees’ email, up from 15 percent in 1998. Companies are also reviewing employees’ computer files -- 21 percent now practice the controversial "cybersnooping," a 7 percent increase since 1998. Although individuals are angered by their perception of a violation in personal privacy, companies maintain that they are looking for abuses of company assets, including pornography and the undertaking of personal errands on company time.

Businesses claim that the best way to control online privacy invasion problems is through self-policing or enforcing strict policies on their own. The alternative, advocated by consumer watchdog groups, is government regulation of online transactions, a move that has many business owners concerned. Therefore, most sites have established privacy policies and vividly display them on every page of their Web sites in an effort to assure online users that their information will not be abused. In 1998, the Federal Trade Commission found that only 14 percent of all commercial Web sites displayed privacy policies. In 1999, the number of sites displaying privacy policy notices, information practice statements, or both, jumped to 66 percent.

Privacy advocates, however, are not impressed. The Electronic Privacy Information Center says that only 9.5 percent of the sites with a policy statement adequately address all four tenets of privacy -- notice, choice, access, and security. This watchdog group believes that these tenets are the crucial elements of effective consumer privacy policies, and that government regulation is the most effective means of enforcing those tenets.

Many leading Internet companies have asked a variety of organizations to establish privacy standards for the Internet, including the Internet Engineering Task Force and the World Trade Organization. Consumer privacy groups, however, have asked the Federal Trade Commission to take the lead in establishing and enforcing Internet standards for privacy. Regardless of what organization takes the lead, the bottom line is that these standards currently do not exist.

Web site owners need to establish, publish, and enforce their own online privacy policy. The policy should be easy to read and explicit about what a company will or will not do with consumer information. Identify a point of contact and a working phone for each site to answer any questions or concerns. Prominently display this policy, especially on the pages that are asking for consumer information. Be aware that the Federal Trade Commission considers the publication of this policy a legal statement, and will sanction violators for unfair trade practices if violated.

Another alternative to Web site owners is to participate in an online "privacy seal" program. Two organizations, the Council for Better Business Bureaus and TRUSTe, offer third-party certification of a site’s use of consumer information. Each site allows you to download free guidelines for establishing an effective privacy policy. However, the privacy seals can cost up to $5,000 per year to establish and maintain.

The process for obtaining a seal from either organization is extensive. First, your company must agree to disclose all information-collection practices. You must also allow a consumer to deny the use of their information for marketing purposes. In addition, you must keep all voluntary information in a secure database.

Next, your company must disclose its privacy policy to the organizations, and fill out an online questionnaire, which asks detailed information about your collection practices. After a short review of your information, a representative will contact you regarding any necessary changes that must be made in your site’s practices, and then submits your application, once you make any needed changes. Both organizations make periodic spot checks on your actual privacy practices. If your company fails a spot check, your seal is revoked.

Essentially, privacy seals are attempting to reassure users of a company’s integrity among online businesses. A poll conducted by AT&T Labs Research found that 58 percent of Internet users were more likely to disclose personal information to a site with both a privacy policy and a privacy seal.

Ultimately, honesty is truly the best policy when deciding how to establish your site’s privacy policy. Providing clear, honest information to your site visitors, and letting them choose how their information is used, is the key to success. Visit other Web sites to review examples of other privacy policies. Place yourself in the shoes of your consumer. If your policies pass your personal privacy test, chances are you have an effective privacy policy. Finally, keep up to date on the latest privacy debates. If you have strong feelings about the direction of Internet privacy, let your feelings be heard.