Exchange of Information Through Seemingly Harmless Behaviors Jeopardizing Safety and Confidentiality

Entering Sweepstakes, Enrolling in Reward Programs, Filling out Warranty Cards All Help Fuel Hidden Data Trade Industry

LA JOLLA, Calif. (Business Wire EON) April 30, 2008 -- Despite placing the security of their personal information as a top priority, many U.S. adults are unwittingly engaging in everyday activities that could put their privacy in jeopardy, according to a new study conducted by Harris Interactive^®.

While we don't expect consumers to change their day-to-day behavior, we do want them to be aware of how these activities can put their privacy at risk.

Eighty-three percent of adults in the March 2008 survey agree that ensuring the security of their personal information is a top priority. Seventy-seven percent believe they know how to properly protect their personal information, while about half (51 percent) believe they are at low risk for their personal information to be used without their permission. However, the survey’s review of 12 everyday activities reveals a startling lack of awareness over how seemingly innocuous activities, such as entering a sweepstakes or filling out a warranty card, can actually compromise the security of personal information, including a person’s name, contact details, income and credit history.

In fact, more than half of U.S. adults are not aware of the risks associated with ten of the 12 potentially harmful activities – indicating a significant gap in understanding what could put people at risk for the unauthorized usage or sharing of their personal information, which can lead to greater junk mail volume, increased profiling without consent, and greater exposure to identity theft.

The survey was commissioned by ProQuo™ Inc. (www.proquo.com), a leading authority on privacy issues and a web-based company founded to give consumers meaningful choices over the use of their personal information.

“Consumers have little idea of what data traders are doing with their personal information,” said Richard Purcell, CEO of Corporate Privacy Group and former Chief Privacy Officer at Microsoft Corp. “The dark secret of marketing in the U.S. is that information collection, use and sharing is largely unregulated. Despite efforts at self-regulation, keeping data traders in line is still a challenge. The survey results show that consumers need to get more involved in controlling their own personal information.”

Other potentially risky behaviors reviewed in the survey include applying for a credit card in a retail store, applying for a bank loan or home mortgage, signing up for a supermarket discount card, donating to political campaigns, requesting information about a product/service seen online, providing personal information to a web site without reviewing its privacy policy, and enrolling in a rewards program, such as frequent flyer or hotel points programs.

Non-marketing activities that increase risk, such as having a baby or getting married, were also included in the survey.

Survey results show that nearly three in four adults (73 percent) entered a sweepstakes in the past six months, but less than half (48 percent) were aware that doing so can put their personal information at risk. In addition, 69 percent were unaware that donating to a political campaign could compromise control over personal information, while 64 percent were unaware of the risk associated with completing and returning a warranty or product registration card.

“Consumers’ personal data is bought and sold many times over as part of a little-known $10 billion per year data trade industry,” said Steven Gal, CEO of ProQuo. “While we don’t expect consumers to change their day-to-day behavior, we do want them to be aware of how these activities can put their privacy at risk.” Last year, ProQuo.com was established to help consumers proactively remove themselves from leading marketing lists in the U.S. and gain better control over how their personal information is used.

Other key findings of the survey include:

• Eighty-seven percent of adults believe their personal information, such as name, address, email, age, income, credit rating and purchasing preferences, are only somewhat, slightly, or not at all secure.
• About one in four adults (26 percent) are not aware that providing their personal information to a web site without reviewing its privacy policy can lead to their information being used or shared without their permission.
• Thirty-eight percent requested information about a product or service they saw online and nearly half (47 percent) have completed and returned a warranty or product registration card in the past six months.

According to Gal, one of the early indicators that a consumer’s personal information may be widely available in the data trade industry is the amount of junk mail they receive. Using ProQuo.com, consumers can pro-actively remove themselves from major data broker marketing and mailing lists, while also indicating what type of offers, if any, they do want to receive. The service is free.

To assess their privacy risk and compare it against the national average, consumers are invited to take a survey at www.ProQuo.com/privacyquiz.

Survey Methodology

The Privacy and Personal Information survey was commissioned by ProQuo, Inc. and conducted online by Harris Interactive between March 13 and March 17, 2008. There were 2,552 adult respondents ages 18 plus selected from among those who have agreed to participate in Harris Interactive surveys. Results were weighted as needed on basis of region, age within gender, education, household income and race/ethnicity. Propensity score weighting was also used to adjust for respondents’ propensity to be online. A full methodology is available.

About ProQuo, Inc.

With headquarters in La Jolla, California, ProQuo was founded to put consumers in control of their personal information, letting them decide if and how businesses use it. ProQuo helps consumers stop the mail they don’t want and get the offers they really do want. Visit ProQuo at www.proquo.com.

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