ABSTRACT
New and advanced technologies enable firms to collect, use, disseminate,
disclose, and sell Internet users’ personal information. Privacy concerns are thus
revealed. Self-regulation is preferred by the government and the industry. This research
applies the analysis of the traditional media’s self-regulatory efforts to predict if self-
regulation works in the Internet. Unfortunately, the Internet does not provide
circumstances for a successful self-regulation regime. First, Internet industry members
do not have strong incentives to comply with privacy principles. The only means to
encourage industry members to take action to self-regulate their privacy practices may be
threats of government legislation. Nevertheless, the government believes that the
industry has the ability to self-regulate and therefore takes a hands-off stand. Second, it
is noticeable that the enormous size of the Internet across nations will make the
enforcement difficult. Third, funding of self-regulatory organizations is a problem.
Fourth, enforcement mechanism and power are not effective in encouraging compliance
of members. Finally, public participation in the Internet’s self-regulatory efforts is
problematic. In sum, legislation is necessary to ensure the industry’s consistent and
persistent commitment to fair information practices and their compliance. This paper
attempts to assist policy observation and policy making by evaluating policy proposals,
analyzing conflicts, and identifying the best ways to deal with online privacy
controversies in light of the revealed social conditions and Internet characteristics.
Convention