The impact of the Protection of Personal Information Act on online consumers’ privacy concerns

Abstract

Globally, consumer privacy remains a major concern when shopping online and merchants are collecting and using personal information. However, many nations have been responding with personal data protection laws to protect individuals’ human rights to privacy. In South Africa, the government introduced the Protection of Personal Information Act (POPIA) in 2013 and fully enacted in July 2020. This study aimed to investigate the impact of POPIA on online shoppers' privacy concerns by examining consumer privacy concerns before and after POPIA was introduced and also determine the extent to which knowledge of POPIA has influenced online privacy concerns. A quantitative methodology using descriptive statistics and hypothesis testing was adopted to guide the analysis of data collected from a random sample drawn from students of one South African university using a pre-designed questionnaire. The results support the hypothesis that online shoppers' privacy concerns have not changed before and after the POPIA enactment. The descriptive statistics revealed that online shoppers lack knowledge of POPIA and still have concerns about the safety of their personal information, credit card and identity information theft, and impostor online organisations. With increased data breaches and deliberate information disclosure, these concerns prevent consumers from shopping online because of personal information safety fears. It is recommended that policymakers introduce more awareness campaigns and case laws of the legislation to the public. Organisations can invest more in employee training and development initiatives on POPIA regulations, POPIA compliance on internal systems, and online platforms to sensitise staff and minimise possible litigation