Internet Seals of Approval: Effects on Online Privacy Policies and Consumer Perceptions

Journal of Consumer Affairs, Vol. 36, No. 1, pp. 28-49, Summer 2002

32 Pages Posted: 19 Jan 2005 Last revised: 22 Sep 2008

See all articles by Anthony Miyazaki

Anthony Miyazaki

Florida International University; University of Miami

Sandeep Krishnamurthy

University of Washington, Bothell - E-Commerce and Marketing

Abstract

The use of Internet seal of approval programs has been touted recently as an alternative to potential legislation concerning consumer-related online privacy practices. Questions have been raised, however, regarding the effectiveness of such programs with respect to maintaining privacy standards and aiding online consumers. The authors examine these issues in a series of four studies, the first of which examines Internet seal of approval logo usage in the current marketplace. The next study applies Federal Trade Commission privacy standards to various online privacy policies in an effort to determine the ability of seal of approval program participation to act as a valid cue to a firm's state privacy practices. The last two studies are experiments designed to ascertain how online firm participation in Internet seal of approval programs affect consumers. Implications for policy and industry are also discussed.

Keywords: Privacy, Internet, Web, Marketing, Seal, Seal of Approval, TrustE, BBB, Federal Trade Commission, FTC, Experiment, Consumer

Suggested Citation

Miyazaki, Anthony and Krishnamurthy, Sandeep, Internet Seals of Approval: Effects on Online Privacy Policies and Consumer Perceptions. Journal of Consumer Affairs, Vol. 36, No. 1, pp. 28-49, Summer 2002, Available at SSRN: https://ssrn.com/abstract=650003

Anthony Miyazaki

Florida International University ( email )

University Park
11200 SW 8th Street
Miami, FL 33199
United States

University of Miami

Coral Gables, FL 33124
United States

Sandeep Krishnamurthy (Contact Author)

University of Washington, Bothell - E-Commerce and Marketing ( email )

Business Administration Program, UW-1-233
18115, Campus Way NE
Bothell, WA Washington State 98011
United States
(425) 352 5229 (Phone)
(425) 352 5277 (Fax)

HOME PAGE: http://faculty.washington.edu/sandeep

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