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