Provision of Internet privacy and market conditions: An empirical analysis

Importing insights from an industrial organization model, this study analyzes the relationship between the provision of Internet privacy protection and market conditions. A composite sample of heavily trafficked and randomly selected sites was examined as to their level of privacy protection, as indicated by interface features of Notice and Choice. The analyses showed the limited supply of such functionalities by most websites, far short of the industry's standard of conduct. Logistic regressions demonstrated that domain and website attributes, indicative of market conditions, had minimal impact on the likelihood of high privacy provision. The findings shed critical lights on the market-based FTC Internet privacy principle that has been placed since 1998 and indicate the need for a new set of interface-focused policy proposals in domain-context specific regulations.

► The relationship between the provision of Internet privacy protection and market conditions is analyzed.
► Logistic regressions demonstrate that domain and website attributes had minimal impact on the likelihood of high privacy provision.
► The implications for the market-based FTC Internet privacy principle are discussed.