The Power of Fair Information Practices - A Control Agency Approach

Abstract: Most companies' new business practices are based on customer data. These practices have raised privacy concerns because of the associated risks. Privacy laws require companies to gain customer consent before using their information, which stands as the biggest roadblock to monetise this asset. Privacy literature suggests that reducing privacy concerns and building trust may increase individuals' intention to authorise the use of personal information. Fair information practices (FIPs) are potential means to achieve this goal. However, there is lack of empirical evidence on the mechanisms through which the FIPs affect privacy concerns and trust. This research argues that FIPs load individuals with control, which has been found to influence privacy concerns and trust level. We will use an experimental design methodology to conduct the study. The results are expected to have both theoretical and managerial implications.