Privacy

1. 1

   Fifty-seven (57) percent of all small employers are concerned about the loss of privacy in the United States. Of those concerned, nearly three-quarters (72%) feel the government should err on the side of privacy over economic efficiency if a trade-off must be made. However, a majority overall (58%) feel the government maintains a good balance between privacy and economic efficiency.

2. 2

   The most frequently cited area where small-business owners feel a better balance between privacy and commerce needs to be maintained is stolen identity. Of those who cited stolen identity, half feel that the rights of business are too heavily favored and 36 percent feel that the rights of privacy are too heavily favored.

3. 3

   Small-business owners are concerned about the unauthorized collection, release and use of both their business and personal information; 81 percent of those worried about privacy do not distinguish between the two.

4. 4

   Business owners most frequently cite a credit-reporting agency (28%) as an entity that has abused their private information. The next most frequently cited entity is a financial institution (27%, followed by an on-line vendor (25%).

5. 5

   Sixty-one (61) percent of small-business owners polled maintain a list of business customers or prospective customers. One-quarter of those owners notify people that they are collecting information.

6. 6

   Just 33 percent of small employers feel “reasonable” people would consider the information they maintain to be personal or confidential. These owners are likely to take steps to protect that information. Eighty-eight (88) percent keep it in a locked file, room, area, or on a secure computer; 76 percent release information only upon written permission; 69 percent limit employee access; and 58 percent have a written privacy policy.

7. 7

   The most frequently cited method used to compile customer lists is to reference billing or payment information (39%). Just 12 percent of owners employ browsers on Web sites and 6 percent use credit card information.

8. 8

   A majority (56%) use their lists for promotional purposes. Many others use their lists to increase client goodwill, such as with greeting cards (47%), or to remind customers of appointments or check-ups (35%). Less than 1 percent sell their file to third parties.

9. 9

   The overwhelming majority of small employers do not find their lists critical to the success of their businesses.

10. 10

    A law requiring business owners to remove the name from their lists of any person requesting it in writing would have a varied impact on small businesses. It probably would not significantly alter the business practices of many firms. Twenty-nine (29) percent of owners say it would not affect their business and 23 percent would change operations just enough to comply.

Volume 1, Issue 8, 2001
ISSN 1534-8326

Lara Chamberlain
NFIB Research Foundation

• 6Do you maintain information on your customers or prospective customers that reasonable people would consider personal or confidential? Top 100
• 1Are you concerned about the loss of privacy in the United States? Are you extremely concerned, very concerned, somewhat concerned, or mildly concerned?
• 2A trade-off sometimes exists between privacy on the one hand and economic efficiencies that result in such things as lower costs on the other. When a trade-off exists, should government officials err on the side of privacy OR on the side of economic efficiency? Do you feel that way strongly?
• 3Are you more concerned about the unauthorized collection, release and use of your business information OR your personal information? Or, are you equally concerned about both?
• 4In which one part of life are you most concerned over potential for the loss of privacy? Would you say:?
• 5A(abused respondent's privacy) The federal government.
• 5B(abused respondent's privacy) A financial institution.
• 5C(abused respondent's privacy) An insurance company.
• 5D(abused respondent's privacy) An on-line vendor.
• 5E(abused respondent's privacy) A credit reporting agency.
• 5F(abused respondent's privacy) A grocery store.
• 6Aa(confidential customer information) Allow its release only with written permission of the person providing the information.
• 6Ba(confidential customer information) Keep it in a locked file, room, area or on a secure computer.
• 6Ca(confidential customer information) Limit employee access to it.
• 6Da(confidential customer information) Provide a written policy to all whose private information you maintain.
• 7Do you develop and maintain a list or lists of business customers or prospective customers?
• 7Aa(source of business list) Billing or payment information.
• 7Ba(source of business list) Credit card information.
• 7Ca(source of business list) Printed or electronic directories.
• 7Da(source of business list) Browsers on your Web site.
• 7Ea(source of business list) Information provided by customers or others in return for discounts, prizes, etc.
• 7Fa(source of business list) Names purchased from list compilers or other businesses.
• 7bDo you notify people that they are on the list that you are collecting and compiling information about them?
• 7Ac(list's purpose) Send out promotional material to people on it.
• 7Ac1Do you do that by regular mail, e-mail, or both?
• 7Bc(list's purpose) Send out non-promotional material such as reminders of appointments, annual check-ups, annual servicing, etc., to people on it.
• 7Cc(list's purpose) Use the list to telemarket.
• 7Dc(list's purpose) Sell the list to third parties.
• 7Ec(list's purpose) Send greetings on holidays, birthdays, or special occasions to people on it.
• 8Approximately how many total names are currently on all your lists combined?
• 9How important are your lists to the success of your business? Are they:?
• 10How would you react if Congress passed a law requiring that you remove from your list or lists the name of any person who asks you in writing to do so?
• 11As a business owner and private citizen, do you feel government policy leans too heavily toward the protection of privacy rights OR toward the protection of rights to conduct business activity? Or do you feel they are appropriately balanced? Do you feel that way strongly?
• 11aIs this a good thing or a bad thing?
• 12In which ONE part of life do the competing rights of privacy and business activity MOST need better balance? Would you say:?