A dominant regulatory model for web privacy is "notice and choice". In this
model, users are notified of data collection and provided with options to
control it. To examine the efficacy of this approach, this study presents the
first large-scale audit of disclosure of third-party data collection in website
privacy policies. Data flows on one million websites are analyzed and over
200,000 websites' privacy policies are audited to determine if users are
notified of the names of the companies which collect their data. Policies from
25 prominent third-party data collectors are also examined to provide deeper
insights into the totality of the policy environment. Policies are additionally
audited to determine if the choice expressed by the "Do Not Track" browser
setting is respected.
Third-party data collection is wide-spread, but fewer than 15% of attributed
data flows are disclosed. The third-parties most likely to be disclosed are
those with consumer services users may be aware of, those without consumer
services are less likely to be mentioned. Policies are difficult to understand
and the average time requirement to read both a given site{\guillemotright}s
policy and the associated third-party policies exceeds 84 minutes. Only 7% of
first-party site policies mention the Do Not Track signal, and the majority of
such mentions are to specify that the signal is ignored. Among third-party
policies examined, none offer unqualified support for the Do Not Track signal.
Findings indicate that current implementations of "notice and choice" fail to
provide notice or respect choice