SAN FRANCISCO, CA and GREENWICH, CT – According to a new survey, about six in ten consumers (58%) say they may reduce their online shopping during the holiday season this year because of identity theft and other privacy concerns, up from 49 percent who expressed this view a year ago. The second annual online shopping study conducted by TNS, the world’s second largest marketing information company, and TRUSTe, the online privacy leader, indicates that almost half (46%) of Internet shoppers say they buy only from e-tailers that have a privacy statement or seal.
“The results show consumers have been paying attention to the onslaught of spyware, phishing, identity theft and credit card fraud,” said Fran Maier, executive director of TRUSTe. “During this holiday season, consumers will be checking which Web sites are naughty and which are nice by looking for positive signs of privacy, security and safety like privacy seals.”
Half of the 1,071 people surveyed this year plan to limit their holiday online shopping to some extent. Eight percent are so concerned that they do not plan to shop online at all, up two percentage points over last year.
The leading reasons cited by those reducing or halting online shopping include:
- Identity theft concerns (mentioned by 52% in 2004, up from 35% in 2003)
- Fear of credit card theft (44% in 2004, up from 30% last year)
- Spyware potentially being downloaded onto one’s computer (44% in 2004)
- Receiving spam after purchasing from a Web site (42% in 2004, up from 38% in 2003)
“There is no doubt that consumers are far more wary of these online threats as we approach the shopping season this year,” said David Stark, privacy officer of TNS. “Retailers today have to give consumers a reason to trust them with their personal information. A meaningful privacy statement or a privacy seal is an essential starting point.”
Cases of identity theft, credit card fraud and specifically phishing, in which impostors lure victims into submitting their personal details, have been on the rise. Consumers are receiving fraudulent emails from what appear to be major banks and e-tailers.
Consumers were also questioned about their comfort level when making online purchases from brand names vs. smaller e-tailers. One-third say they are less willing to buy from smaller online retailers than larger well-known companies in part because of concerns that smaller e-tailers are more likely to misuse shoppers’ personal information.
The TNS/TRUSTe survey was conducted online between October 15 and 20, 2004. E-mail invitations were sent to a nationally representative sample of the TNS NFO Access panel, comprised of more than one million U.S. households who have agreed to participate in survey research from time-to-time. In total, 1,071 online interviews were completed and the survey results are considered accurate to within three percentage points, 19 out of 20 times.
Complete results of the 2004 Holiday Shopping/Online Privacy survey are available upon request.
About TNS
TNS is one of the world’s leading providers of market information. The company delivers strategic market measurement, analysis, insight and advice to many of the world’s largest organizations and most recognized brands. TNS’ research helps its clients better understand the needs and wants of their customers, and its capabilities span market segmentation, advertising and communications, new product development, brand performance and stakeholder management. The company is also one of the leading providers of social and political polling. From its global network that spans 70 countries who together conduct research in more than 110 countries, TNS allows for local expertise and knowledge to be combined together with internationally consistent information and analysis.
TNS is listed on the London Stock Exchange (TNN) and is a trademark of Taylor Nelson Sofres plc. Further information can be found on www.tns-global.com.
ABOUT TRUSTe
TRUSTe, the online privacy leader, is an independent, nonprofit organization dedicated to enabling individuals and organizations to establish trusting relationships based on respect for personal identity and information in the evolving networked world.
Founded in 1997, TRUSTe runs an award-winning global privacy certification and seal program. Its seal programs are considered Safe Harbors for the Children’s Online Privacy Protection Act (COPPA) and the EU Safe Harbor Framework. Today, TRUSTe maintains the largest privacy seal program with more than 1,400 Web sites certified throughout the world including AOL, Microsoft, IBM, Nationwide and The New York Times. TRUSTe’s mission extends standards, certification and oversight into email with Bonded Sender and wireless with the Wireless Advisory Committee. For more information on TRUSTe please visit www.truste.org.
