While personalization can be a tremendous advantage, companies using unfair information practices are taking a business risk.
Often, the question of how to gather and use information is often addressed before issues of user privacy.
Many advocates of personalization and the Personalized Model, believe that if any Web personalization were to take hold with consumers,
privacy is the first and foremost concern: privacy and profit go hand-in-hand.
Consumers may start to see a new look in those important privacy rights notices that they receivein the mail each year from their banks, brokers, insurance companies and credit card issuers.
Agencies release new consumer privacy rights notice forms
WHAT NEW PRIVACY NOTICES
MEAN FOR CONSUMERS
What: Federal agencies released samples of simplified, consumer-friendly privacy rights notices that banks and other financial institutions can send to customers.
Business Model Generation
- Key points: The forms are not mandatory; banks can continue to mail out the old, legal notices.
- Why it is important: Consumers have the right to opt out of having their personal information shared with third-party companies.
This helps filter out junk mail and telemarketing calls and reduces the risk of identify theft through data breaches.
- View the sample privacy notice.
Federal agencies released samples of model privacy rights notices that are designed to be consumer-friendly and easier to understand.
The new notices are set up in tables with clear language and larger print.
The new model privacy rights forms are not mandatory, so some consumers may continue to get the legacy notices.
- Privacy rights advocates called the new model forms an improvement and urged banks and other financial institutions to adopt the new format.
Others, however, said if banks and other institutions aren't required to use the consumer-friendly forms, consumers will lose out.