Most online shoppers are simply ignorant about how retailers gather and use their personal data, according to additional information released from a report by the Annenberg Public Policy Center of the University of Pennsylvania, reports Internet Retailer. Some 65 percent of the 1,500 adults interviewed believe they know how to keep online sellers from taking advantage of them. But when responding to a survey of 17 true-false questions about laws and practices governing online information gathering and use, consumers on average got only seven questions right.

The survey found that 75 percent of the respondents believe a website's privacy policy means it will not share their information with other websites and companies - when, in fact, it describes how that information will be shared. To help consumers understand the use of their personal data online, the report suggests that the Federal Trade Commission require websites to replace the label "Privacy Policy" with "Using Your Information."

It also recommends that the government require retailers to disclose specifically what data they collect and when and how they use that data to interact with their customers.