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Practicing Privacy: Elements of a Privacy Protection Policy

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Privacy protection is the most important benefit a business can provide to its customers and trading partners. Savvy businesses are differentiating themselves by making privacy protection the cornerstone of their customer-centric business models. These businesses know that to shift from a product or market orientation to a customer-centric business model, privacy protection must be an integral part of the way they do business.

Businesses that have made and kept privacy commitments with their customers are rewarded with higher profit, because strong privacy protections instill customer loyalty and trust and can result in lower customer acquisition costs, improved brand reputation, and favorable press.

A privacy policy isn’t another stale page on your company Web site that is drafted by corporate counsel and ignored in practice. A true privacy policy is like a constitution that articulates a framework of general principles the company will follow to protect customer privacy. In simple terms, the privacy policy is a set of promises and guarantees regarding the security of customer information. If you participate in the framing of your company’s privacy policy, your task is like that of the original framers of the U.S. Constitution. As a framer, you must decide what protections your company will afford customer data, how that data will be used, and how it will be secured. Other decisions include determining the proper scope of data collection, data retention, and data security.

The constitutional metaphor should not be quickly dismissed, because the business consequences of a poorly written, vague, or incomplete policy are significant. As customers in both the B2B and B2C segments become more Internet-savvy, they are scrutinizing company privacy policies when making purchasing and partnering decisions. A vague, ambiguous, or illusory privacy policy will result in the loss of potential and actual customers and increase customer acquisition costs. Further, as government regulation creeps into the consumer information privacy arena, perceived violations of privacy policies may have legal ramifications.

A poorly drafted or unintelligible privacy policy will not instill customer trust and confidence in the company’s privacy practices. From the customers’ perspective, arbitrary or inconsistent protection of their information may be a greater affront than the absence of privacy protection. Your company’s good will, customer loyalty, and significant



investments in brand development will be undermined if privacy policies are haphazard, illusory, or inconsistent. A poorly drafted policy does not give the necessary guidance and clarity to all parts of the company. Ambiguity will breed confusion and inconsistent implementation of the privacy policy across the company.

Accordingly, great care must be taken when drafting a privacy policy. It should not be drafted by IT alone, since all departments will be responsible for living by it and enforcing it. A true privacy policy will be the work of a committee of company leaders who agree that privacy will become a part of their mission. IT will likely have primary enforcement responsibility with respect to infrastructure privacy controls, including customer data collection, data security, and data dissemination. A chief privacy officer may be selected or recruited to spearhead company privacy efforts and sponsor and manage all privacy-related projects.

Understanding the Sources of Privacy

Before a complete privacy policy can be drafted, one should understand the source of the “right to privacy” itself. The right of privacy flows from the nebulous “reasonable expectations” of the customer. Ironically, the framers of the U.S. Constitution omitted any express privacy provisions; judges have implied a “penumbra” of privacy protection from the other protective provisions of the Constitution. The various states, and later federal legislation, have created specific rights to privacy, often in limited contexts. Many of the recent privacy protection laws are legislative responses to failures of the business community to take privacy protection seriously and integrate sufficient protections into their business operations.

Underlying these privacy protection laws is a simple premise: a person has a “reasonable” expectation of privacy as a citizen, including while engaging in commerce. The person, under law, is a hypothetical “reasonable man,” and his privacy expectations are deemed to include protections from unwarranted intrusions into personal matters and protections from unnecessary disclosure and use of private (personally identifiable) information, including financial, personal, or medical data to third parties for unknown uses. Modern-day “reasonable men” are becoming keenly aware of unauthorized use of their information, even if the information was voluntarily disclosed to the company for another purpose.

Ownership Means the Right to Control

While customers believe they “own” their personally identifiable data, they also believe they have the right to control the disclosure, use, and dissemination of that information as an incident of ownership. These notions of ownership and control are especially true of personally identifiable information including driver’s license numbers, social security numbers, credit card numbers, account numbers, and medical record/billing numbers, which are virtual proxies for their assignees. Given the rise of identity theft, stalking, unsolicited commercial email (spam), and the notorious security weaknesses of some high- profile Web sites, consumers are justifiably concerned about the unauthorized dissemination and use of these critical pieces of information. In response, millions of consumers have taken crude steps to protect their privacy while conducting commerce, including creating junk mail email accounts and populating Web site forms with bogus identity data. Given these consumer concerns, a company committed to practicing privacy must be prepared to afford customers control over their personally identifiable information, including the ability to access and update personally identifiable information that is incorrect.

“Opt in” vs. “Opt out”

While the notions of ownership and control seem self-evident, legislatures grappling with privacy protection laws are debating which presumptions should apply when a person



discloses personally identifiable information to a business during a commercial transaction. The opt in versus opt out debate pertains to whether customers are presumed to have opted in to the widespread use of their personal information and must affirmatively act to limit use, or whether the consumer is presumed to have opted out by default and must affirmatively permit (opt in to) any dissemination or use outside the scope of a particular transaction.

While the opt in/opt out debate continues, the presumption of opted in is contrary to the notions of ownership and control that most consumers have regarding their personally identifiable information. From a historical and legal perspective, there is scant support for the view that consumers have opted in to wide disclosure (waived their right to privacy) and must affirmatively assert that right by opting out of disclosure. In law, the general presumption is that a waiver of a legal right will not be presumed and must be either intentional or the product of gross neglect by the person whose rights are affected. With respect to privacy, the law has historically presumed that the context of an event determined a person’s reasonable expectations of privacy regarding that event. For example, a customer purchasing fruit at an outdoor market could not have a reasonable expectation of privacy regarding that transaction, while a party negotiating a purchase of a business behind closed doors may have. Given that many Internet purchases are more akin to private, behind-closed-doors negotiations than outdoor public market purchases, businesses should presume that customers have high privacy expectations. Privacy expectations may be raised if encryption is used during the transaction.

Any company with a serious commitment to instilling customer trust and practicing privacy will presume that a customer has opted out of wide disclosure by default. This presumption is true for third-party disclosure, even to partners, affiliates, and parent companies, especially if the customer has had no prior dealings with those entities. Companies with a commitment to privacy will also ensure that their partners, affiliates, and parent companies don’t receive extraneous information or misuse information transmitted to them as an end run around the company privacy policy.

Elements of a Good Privacy Policy

A good privacy policy will address four key areas: The collection, use, dissemination, and protection of personally identifiable customer information. Additional topics include detailing how customers can correct or update their identifiable information, the technologies that are being used to collect behavior (clickstream) information, and how partners, affiliates, parent companies, successors, and assignees can use customer information. The following is a list of tips for developing a good privacy policy:

• Present a general statement—Many privacy policies begin with a general statement of principles that the company supports with respect to privacy. A brief statement of policy and principles can go a long way to instill customer confidence and trust.

• Define the terms—Like any contract, unique terms such as personally identifiable information must be defined. Unlike traditional contracts, warranties, or disclaimers, the terms and language in a privacy policy must be written so that the public and company employees can easily understand the definitions. And, unlike other contracts, sentences should be drafted to promote disclosure, so that a customer can make an informed decision regarding whether to purchase from your company. The notion of informed consent is key to instilling customer trust. Customers must feel they understand how their information will be used and can make an informed decision whether to do business under those circumstances.

• Identify the types of information collected—Many customers review privacy policies prior to using a company Web site for a purchase. If your privacy policy articulates the specific



types of information to be collected on a data element level, a customer can make an informed decision prior to committing to an order. This is especially true of sites that collect significant customer information as a part of an “enrollment” process prior to placing an order. If your site collects a significant amount of personal information about consumers, this portion of the policy may also explain the use of that particular category of information. State with specificity the types and data elements collected during particular transactions.

• Define the ownership of collected information—A statement of ownership will assure customers that your company is not acting as a loss-leader front for a larger corporate entity or direct marketing firm. Identify the collecting company entity and state whether the entity is a subsidiary, partner, or affiliate of any larger entity.

• Identify how the company will use collected information—This section is the heart of the privacy policy and should provide details pertaining to information use. Again, use plain language.

• Explain sharing practices—Sharing practices are one of the main reasons Congress is taking action to regulate privacy. Carefully consider the ways your company shares information with partners, affiliates, and related entities, and articulate the policy so that customers can make an informed decision regarding their purchases. If your company shares information, articulate which information is shared and identify what, if any, customer-specific (personally identifiable) information is shared and for what purposes. If only aggregate information (summary information about the customers in total) is shared, identify the types of aggregate information shared and the purposes for the sharing.

• Discuss the sharing of collected information with third parties (aggregate information)—Sharing information with third parties is the most controversial aspect of electronic commerce. While data sharing has been occurring for many years, customers are becoming increasingly sensitive to potential misuses of their personally identifiable information. These concerns are compounded by the ability of modern data warehousing technologies, which can amalgamate data from disparate and third-party sources and compile a complete customer profile, including shopping behavior and lifestyle information. Many consumers are skeptical of privacy practices that permit open sharing of personal information across partners, affiliates, subsidiaries, and related companies. Take time to elaborate your company’s sharing policies with third parties, and carefully consider whether sharing information with third parties will undermine your customer-centric focus.

• Cover the potential destruction of collected information—Many failing and failed dotcoms have created privacy firestorms by selling customer information when revenues drop or when the company is liquidated. While Congress is moving to limit these practices, a good privacy policy will address this issue in a forthright manner.

Customers’ confidence will increase if they know that their information will not become a saleable asset should the company fail or have cash flow problems.

• Discuss customer updating of collected personal information—Many of the bills pending before Congress contain provisions that would force companies to permit a consumer to view and update any personally identifiable information kept by a company. Given the rise of identity theft and increasing consumer interest in privacy, most Web sites will need to provide update access to this information. If security precautions are required prior to granting access, identify the security precautions your company will follow before it divulges passwords or permits update access to personal information.

• Identify technologies used to collect information—Congress and consumers alike are increasingly concerned with stealthy information collection technologies, including



cookies, server logs, spyware, clickstream data, site registration, Web bugs, and the like. Identify the technologies your site will use to collect information and the purposes for which the information is collected. Explain the use of these technologies in lay terms that an unsophisticated customer could understand.

• Opt in/opt out of future campaigns—Articulate in detail whether your company’s privacy policies assume that customers have opted in or out of promotional campaigns and other uses of their information.

• Give a link disclaimer—If your site links to third-party sites, inform customers that your company is not responsible for, nor dictates, the privacy practices in place for those external sites. The same is true for banner advertisements that may be displayed on your site.

• Discuss notification of changes to privacy policies—A privacy policy is illusory and will not instill consumer trust if it states that it can be changed without notice. State the circumstances under which the company privacy policies can change, and identify the notice methods that will be used to inform customers of changes to the policy. Consider whether prior notice combined with a waiting period would reinforce your company’s commitment to fair information practices, informed consent, and customer privacy.

• Explain data security measures—If your company uses security mechanisms to protect customer data (for example, Secure Sockets Layer and encryption), articulate those measures in detail. This section of the policy can build customer trust by demonstrating that data security measures are being employed.

• Identify company contacts for privacy issues—Identify the person(s) responsible for handling privacy related issues for your company, and provide complete address and telephone information.

Privacy policies are evolving in response to customer and legislative pressures. The References and Related Materials list at the end of this article includes links to resources to assist your company with its privacy initiatives and the development of a comprehensive privacy policy.

Practicing Privacy

As an IT professional, you’re on the front line of privacy policy enforcement. Your department has the ability and the responsibility to implement infrastructure changes that protect privacy and provide security.

Implementation of a privacy policy is a cross-company project. An analysis of existing procedures and systems will have to be undertaken to determine the scope of data collection, the uses of data, data sharing, and data security practices. In many instances, additional functionality must be added to Web sites to allow customers to update their personally identifiable data.

Enforcement may challenge the diplomacy skills of IT. For example, if your marketing or sales units or affiliates are accustomed to unfettered access to company data (perhaps through query tools), imposing access and use restrictions consistent with the privacy policy may be met with resistance.

Some may believe that the obligations of implementing and enforcing a comprehensive privacy policy may be too onerous and may interfere with your department’s mission and goals. Others may believe that policy implementation and enforcement will drain resources needed from other higher-profile—and presumably higher-value—projects. One need only to look at the bigger picture to understand that these responsibilities are concurrent with the mission of IT. The Internet has created a global



marketplace in which businesses and consumers can buy product from many sources. In many cases, a competitor may be able to provide higher quality, lower price, or both. Those companies that distinguish themselves with superior privacy protections will likely win the confidence of fickle customers. Without respect for a customer’s expectations of privacy, many businesses will fail to compete in the global marketplace, especially during tight economic times.

Privacy protection is a win-win for IT. Unlike other technology projects, the successful implementation of privacy initiatives can have a measurable effect on customer trust, loyalty, and sales and distinguish your company from its increasing competition.

REFERENCES AND RELATED MATERIALS

• BBBOnLine (Better Business Bureau) home page: www.bbbonline.com
• Electronic Frontier Foundation home page: www.eff.org
• Electronic Privacy Information Center home page: www.epic.org
• Federal Trade Commission home page: www.ftc.gov
• Privacy & American Business home page: www.pandab.org
• Privacy Council home page: www.privacycouncil.com
• PrivacyExchange.org home page: www.privacyexchange.org
• Privacy Foundation home page: www.privacyfoundation.org
• Privacy Rights Clearinghouse home page: www.privacyrights.org
• TRUSTe home page: www.truste.com



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  • Node.js on IBM i Webinar Series Pt. 2: Setting Up Your Development Tools

    Profound Logic Software, Inc.Have you been wondering about Node.js? Our free Node.js Webinar Series takes you from total beginner to creating a fully-functional IBM i Node.js business application. In Part 2, Brian May teaches you the different tooling options available for writing code, debugging, and using Git for version control. Attend this webinar to learn:

    • Different tools to develop Node.js applications on IBM i
    • Debugging Node.js
    • The basics of Git and tools to help those new to it
    • Using NodeRun.com as a pre-built development environment

     

     

  • Inside the Integrated File System (IFS)

    SB_HelpSystems_WC_GenericDuring this webinar, you’ll learn basic tips, helpful tools, and integrated file system commands—including WRKLNK—for managing your IFS directories and Access Client Solutions (ACS). We’ll answer your most pressing IFS questions, including:

    • What is stored inside my IFS directories?
    • How do I monitor the IFS?
    • How do I replicate the IFS or back it up?
    • How do I secure the IFS?

    Understanding what the integrated file system is and how to work with it must be a critical part of your systems management plans for IBM i.

     

  • Expert Tips for IBM i Security: Beyond the Basics

    SB PowerTech WC GenericIn this session, IBM i security expert Robin Tatam provides a quick recap of IBM i security basics and guides you through some advanced cybersecurity techniques that can help you take data protection to the next level. Robin will cover:

    • Reducing the risk posed by special authorities
    • Establishing object-level security
    • Overseeing user actions and data access

    Don't miss this chance to take your knowledge of IBM i security beyond the basics.

     

     

  • 5 IBM i Security Quick Wins

    SB PowerTech WC GenericIn today’s threat landscape, upper management is laser-focused on cybersecurity. You need to make progress in securing your systems—and make it fast.
    There’s no shortage of actions you could take, but what tactics will actually deliver the results you need? And how can you find a security strategy that fits your budget and time constraints?
    Join top IBM i security expert Robin Tatam as he outlines the five fastest and most impactful changes you can make to strengthen IBM i security this year.
    Your system didn’t become unsecure overnight and you won’t be able to turn it around overnight either. But quick wins are possible with IBM i security, and Robin Tatam will show you how to achieve them.

  • How to Meet the Newest Encryption Requirements on IBM i

    SB PowerTech WC GenericA growing number of compliance mandates require sensitive data to be encrypted. But what kind of encryption solution will satisfy an auditor and how can you implement encryption on IBM i? Watch this on-demand webinar to find out how to meet today’s most common encryption requirements on IBM i. You’ll also learn:

    • Why disk encryption isn’t enough
    • What sets strong encryption apart from other solutions
    • Important considerations before implementing encryption

     

     

  • Security Bulletin: Malware Infection Discovered on IBM i Server!

    SB PowerTech WC GenericMalicious programs can bring entire businesses to their knees—and IBM i shops are not immune. It’s critical to grasp the true impact malware can have on IBM i and the network that connects to it. Attend this webinar to gain a thorough understanding of the relationships between:

    • Viruses, native objects, and the integrated file system (IFS)
    • Power Systems and Windows-based viruses and malware
    • PC-based anti-virus scanning versus native IBM i scanning

    There are a number of ways you can minimize your exposure to viruses. IBM i security expert Sandi Moore explains the facts, including how to ensure you're fully protected and compliant with regulations such as PCI.

     

     

  • Fight Cyber Threats with IBM i Encryption

    SB PowerTech WC GenericCyber attacks often target mission-critical servers, and those attack strategies are constantly changing. To stay on top of these threats, your cybersecurity strategies must evolve, too. In this session, IBM i security expert Robin Tatam provides a quick recap of IBM i security basics and guides you through some advanced cybersecurity techniques that can help you take data protection to the next level. Robin will cover:

    • Reducing the risk posed by special authorities
    • Establishing object-level security
    • Overseeing user actions and data access

     

     

     

  • 10 Practical IBM i Security Tips for Surviving Covid-19 and Working From Home

    SB PowerTech WC GenericNow that many organizations have moved to a work from home model, security concerns have risen.

    During this session Carol Woodbury will discuss the issues that the world is currently seeing such as increased malware attacks and then provide practical actions you can take to both monitor and protect your IBM i during this challenging time.

     

  • How to Transfer IBM i Data to Microsoft Excel

    SB_HelpSystems_WC_Generic3 easy ways to get IBM i data into Excel every time
    There’s an easy, more reliable way to import your IBM i data to Excel? It’s called Sequel. During this webinar, our data access experts demonstrate how you can simplify the process of getting data from multiple sources—including Db2 for i—into Excel. Watch to learn how to:

    • Download your IBM i data to Excel in a single step
    • Deliver data to business users in Excel via email or a scheduled job
    • Access IBM i data directly using the Excel add-in in Sequel

    Make 2020 the year you finally see your data clearly, quickly, and securely. Start by giving business users the ability to access crucial business data from IBM i the way they want it—in Microsoft Excel.

     

     

  • HA Alternatives: MIMIX Is Not Your Only Option on IBM i

    SB_HelpSystems_WC_GenericIn this recorded webinar, our experts introduce you to the new HA transition technology available with our Robot HA software. You’ll learn how to:

    • Transition your rules from MIMIX (if you’re happy with them)
    • Simplify your day-to-day activities around high availability
    • Gain back time in your work week
    • Make your CEO happy about reducing IT costs

    Don’t stick with a legacy high availability solution that makes you uncomfortable when transitioning to something better can be simple, safe, and cost-effective.

     

     

  • Node Webinar Series Pt. 1: The World of Node.js on IBM i

    SB Profound WC GenericHave you been wondering about Node.js? Our free Node.js Webinar Series takes you from total beginner to creating a fully-functional IBM i Node.js business application.
    Part 1 will teach you what Node.js is, why it's a great option for IBM i shops, and how to take advantage of the ecosystem surrounding Node.
    In addition to background information, our Director of Product Development Scott Klement will demonstrate applications that take advantage of the Node Package Manager (npm).
    Watch Now.

  • The Biggest Mistakes in IBM i Security

    SB Profound WC Generic The Biggest Mistakes in IBM i Security
    Here’s the harsh reality: cybersecurity pros have to get their jobs right every single day, while an attacker only has to succeed once to do incredible damage.
    Whether that’s thousands of exposed records, millions of dollars in fines and legal fees, or diminished share value, it’s easy to judge organizations that fall victim. IBM i enjoys an enviable reputation for security, but no system is impervious to mistakes.
    Join this webinar to learn about the biggest errors made when securing a Power Systems server.
    This knowledge is critical for ensuring integrity of your application data and preventing you from becoming the next Equifax. It’s also essential for complying with all formal regulations, including SOX, PCI, GDPR, and HIPAA
    Watch Now.

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  • Backup and Recovery on IBM i: Your Strategy for the Unexpected

    SB HelpSystems SC 5413Robot automates the routine tasks of iSeries backup and recovery, saving you time and money and making the process safer and more reliable. Automate your backups with the Robot Backup and Recovery Solution. Key features include:
    - Simplified backup procedures
    - Easy data encryption
    - Save media management
    - Guided restoration
    - Seamless product integration
    Make sure your data survives when catastrophe hits. Try the Robot Backup and Recovery Solution FREE for 30 days.

  • Manage IBM i Messages by Exception with Robot

    SB HelpSystems SC 5413Managing messages on your IBM i can be more than a full-time job if you have to do it manually. How can you be sure you won’t miss important system events?
    Automate your message center with the Robot Message Management Solution. Key features include:
    - Automated message management
    - Tailored notifications and automatic escalation
    - System-wide control of your IBM i partitions
    - Two-way system notifications from your mobile device
    - Seamless product integration
    Try the Robot Message Management Solution FREE for 30 days.

  • Easiest Way to Save Money? Stop Printing IBM i Reports

    SB HelpSystems SC 5413Robot automates report bursting, distribution, bundling, and archiving, and offers secure, selective online report viewing.
    Manage your reports with the Robot Report Management Solution. Key features include:

    - Automated report distribution
    - View online without delay
    - Browser interface to make notes
    - Custom retention capabilities
    - Seamless product integration
    Rerun another report? Never again. Try the Robot Report Management Solution FREE for 30 days.

  • Hassle-Free IBM i Operations around the Clock

    SB HelpSystems SC 5413For over 30 years, Robot has been a leader in systems management for IBM i.
    Manage your job schedule with the Robot Job Scheduling Solution. Key features include:
    - Automated batch, interactive, and cross-platform scheduling
    - Event-driven dependency processing
    - Centralized monitoring and reporting
    - Audit log and ready-to-use reports
    - Seamless product integration
    Scale your software, not your staff. Try the Robot Job Scheduling Solution FREE for 30 days.

  • ACO MONITOR Manages your IBM i 24/7 and Notifies You When Your IBM i Needs Assistance!

    SB DDL Systems 5429More than a paging system - ACO MONITOR is a complete systems management solution for your Power Systems running IBM i. ACO MONITOR manages your Power System 24/7, uses advanced technology (like two-way messaging) to notify on-duty support personnel, and responds to complex problems before they reach critical status.

    ACO MONITOR is proven technology and is capable of processing thousands of mission-critical events daily. The software is pre-configured, easy to install, scalable, and greatly improves data center efficiency.