An Economic Argument for Electronic Privacy

This Article proposes an economic framework with which to analyze the U.S.'s electronic privacy laws in the context of international privacy standards.A key assumption is that electronic privacy generally exists in tension with the speed and convenience of e-commerce: if privacy protections are too strong, e-commerce will suffer.At the same time, however, this Article shows that consumers expect a certain basic level of privacy when they conduct electronic transactions.A government that fails to provide this certain level of privacy effectively weakens the e-commerce industry.This Article concludes the United States has failed to guarantee sufficient privacy protections and that, by learning from the E.U. and Canada, the U.S. can increase both personal privacy and the effectiveness of e-commerce by enacting comprehensive electronic privacy laws.8 "Who will watch the watchmen?"9 There are many excellent sources that summarize the E.U., U.S., and Canadian privacy law in much greater detail than is afforded here.E.g., Avner Levin & Mary Jo Nicholson, Privacy Law in the United States, the E.U. and Canada: The Allure of the Middle Ground, 2 OTTAWA L