CHAPTER 2

Why Privacy Is Needed

Chapter Overview

In this chapter, you will consider claims that privacy is dead and why the maintenance of privacy is important to the marketplace of information exchange. You will also learn about why consumers need privacy and why it is in marketers’ best interests to provide privacy protection.

The Death of Privacy?

In 1999 Scott McNealy, the CEO of Sun Microsystems, commented to the press that “You have zero privacy anyway, get over it.” This resulted in sharp reaction from other industry observers who thought his normative comments would affect consumer behavior. The director of the Bureau of Consumer Protection at the Federal Trade Commission (FTC), Jodie Bernstein, commented that, “Millions of American Consumers ...

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