Ten Fallacies About Web Privacy

[Commentary] Privacy on the Web is a constant issue for public discussion -- and Congress is always considering more regulations on the use of information about people's habits, interests or preferences on the Internet. Unfortunately, these discussions lead to many misconceptions. Here are 10 of the most important:

1) Privacy is free. 2) If there are costs of privacy, they are borne by companies. 3) If consumers have less control over information, then firms must gain and consumers must lose. 4) Information use is "all or nothing." 5) If consumers have less privacy, then someone will know things about them that they may want to keep secret. 6) Information can be used for price discrimination (differential pricing), which will harm consumers. 7) If consumers knew how information about them was being used, they would be irate. 8) Increasing privacy leads to greater safety and less risk. 9) Restricting the use of information (such as by mandating consumer "opt-in") will benefit consumers. 10) Targeted advertising leads people to buy stuff they don't want or need.

[Rubin teaches economics at Emory University]