Many consumers are concerned about what information they reveal when they go online, how that information is protected, and how it will be used. Government regulators have clamored to answer those questions and impose their visions of online commerce. But the best answers will emerge from competition among firms to serve consumers. Because consumers have many options online, and because they can decline to use the Internet entirely, they can reward and punish online businesses on the basis of their privacy and security practices.

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