Enhancing consumer perceptions of privacy and trust: a GDPR label perspective

Abstract

PurposeThe General Data Protection Regulation (GDPR) introduces significant data protection obligations on all organizations within the European Union (EU) and those transacting with EU citizens. This paper presents the GDPR privacy label and uses two empirical studies to examine the effectiveness of this approach in influencing consumers' privacy perceptions and related behavioral intentions.Design/methodology/approachThe paper tests the efficacy of two GDPR privacy label designs, a consent-based label and a static label. Study 1 examines the effects of each label on perceptions of risk, control and privacy. Study 2 investigates the influence of consumers' privacy perceptions on perceived trustworthiness and willingness to interact with the organization.FindingsThe findings support the potential of GDPR privacy labels for positively influencing perceptions of risk, control, privacy and trustworthiness and enhancing consumers' willingness to transact and disclose data to online organizations.Practical implicationsThe findings are useful for organizations required to comply with the GDPR and present a solution to requirements for transparent communications and explicit consent.Originality/valueThis study examines and demonstrates the efficacy of visualized privacy policies in impacting consumer privacy perceptions and behavioral intentions.