Privacy protection

Approaches to privacy can, broadly, be divided into two categories: free market, and consumer protection.^[22] In a free market approach, commercial entities are largely allowed to do what they wish, with the expectation that consumers will choose to do business with corporations that respect their privacy to a desired degree. If some companies are not sufficiently respectful of privacy, they will lose market share. Such an approach may be limited by lack of competition in a market, by enterprises not offering privacy options favorable to the user, or by lack of information about actual privacy practices. Claims of privacy protection made by companies may be difficult for consumers to verify, except when they have already been violated.

In a consumer protection approach, in contrast, it is acknowledged that individuals may not have the time or knowledge to make informed choices, or may not have reasonable alternatives available. In support of this view, Jensen and Potts showed that most privacy policies are above the reading level of the average person .^[23] Therefore, this approach advocates greater government definition and enforcement of privacy standards.