DATA PRIVACY FROM THE LEGAL TO THE ETHICAL ? ERIC SALAMA, SENIOR FELLOW HARVARD KENNEDY SCHOOL M-RCBG 29 TH OCTOBER 2020
HOUSE REPORT SEES POOR STANDARDS OF DATA PRIVACY AS EVIDENCE OF MONOPOLY POWER “In the absence of adequate privacy guardrails in the United States, the persistent collection and misuse of consumer data is an indicator of market power online…..As a result, consumers are forced to either use a service with poor privacy safeguards or forego the service altogether……. The best evidence of platform market power therefore is not prices charged but rather the degree to which platforms have eroded consumer privacy without prompting a response from the market. As scholars have noted, a platform’s ability to maintain strong networks while degrading user privacy can reasonably be considered equivalent to a monopolist’s decision to increase prices or reduce product quality…….Additionally a dominant platform can use its market power to extract more data from users, undermining their privacy…. The opacity of data collection and use contributes to consumer confusion and the misperception that consumers do not care about their privacy—the so-called privacy paradox— simply because they use services that have become essential”
PRIVACY ISSUES A PART, ALBEIT MINOR, OF GOVERNMENT’S CASE “ Countless advertisers must pay a toll to Google’s search advertising and general search text advertising monopolies; American consumers are forced to accept Google’s policies, privacy practices and use of personal data”
DO YOU FEEL IN CONTROL ? www.vespa.com https://edition.cnn.com/ https://www.idownloadblog.com/
THERE IS A MINORITY OF PEOPLE WHO ACTIVELY ATTEMPT TO SAFEGUARD THEIR PRIVACY 68% of US adults would like to protect their data more but find it hard to do 45 40 35 30 25 20 15 10 5 0 Make their social media Clear their cookie cache Turn off location tracking Use an adblocker Change their browser Change their cookie accounts private so that tools settings settings they are only visible to family and friends % US adults who always
LEGISLATION HAS NOT ACHIEVED ITS OBJECTIVE : PEOPLE DO NOT FEEL IN CONTROL AND OPT-IN APPEARS TO MAKE NO DIFFERENCE 60 50 40 30 20 10 0 Have total control over personal data Have some control over personal data Have very little control over personal and how it is used and how it is used data and how it is used US UK Germany Source : Salama Privacy Study Conducted by Morning Consult October 2020
CONSUMERS TRUST BRICKS MORE THAN CLICKS % who trust completely or a lot each of the following institutions to protect their data and use appropriately 60 50 40 30 20 10 0 Hospitals and Banks and credit Internet and cable Government Loyalty card Mobile device Ecommerce Social media schools card companies providers providers manufacturers companies companies US UK Germany Source : Salama Privacy Study Conducted by Morning Consult October 2020
SHARING PERSONAL DATA FOR SOCIETAL BENEFITS IS SEEN AS MUCH MORE ACCEPTABLE IN EUROPE THAN IN THE US Chart Title 100% 35 43 56 57 80% 60% 65 40% 57 44 43 20% 0% US UK US UK Would rather have government bodies have access to my data Would rather private companies have access to my data Give access to personal data to fight crime and terrorism Protect personal data whatever the costs Source : Salama Privacy Study Conducted by Morning Consult October 2020
AND IN UK, PEOPLE ARE MORE WILLING TO SHARE THEIR DATA WITH GOVERNMENT TO BENEFIT SOCIETY FOR NO FEE 50 45 40 35 30 25 20 15 10 5 0 Journey data to help with Location data with police Health activity data to Journey movement data to Phone logs to decide Social media to help Covid tracking to improve public safety facilitate research help improve public where to locate free wifi decide where to develop and response times transport new schools and kids recreation facilities % UK adults willing to share their data with government and public institutions Source : Salama Privacy Study Conducted by Morning Consult October 2020
WHAT ARE SOME OF THE POSSIBLE ROUTES FORWARD ? Legislation that is agile and enforced Move from an advertising-dominant to a subscriber-led business model Commit to and enforce a “no-identification” approach Greater transparency in the way that data is being used A more ethical approach from advertisers
A REMINDER OF WHERE WE ARE WITH LEGISLATION Legislation in over 60 countries (eg GDPR, CCPA) has sought to give consumers control over use of their data For practitioners, the legislation is not harmonised across countries and is ambiguous The push for transparency and consumer control has not put consumers in control Very few fines of any substance have been levied for violations of rules https://www.enforcementtracker.com/
“The commercial advantages and potential abuse of consumer privacy..must be addressed with a cohesive public oversight structure. Consumers today suffer from both a lack of control over how their data are used and an inability to take their data from platform to platform…. A new agency would be well positioned to balance privacy and competition”
WHAT ARE SOME OF THE POSSIBLE ROUTES FORWARD ? Legislation that is agile and enforced Move from an advertising-dominant to a subscriber-led business model
A MINORITY ARE WILLING TO SHARE THEIR DATA IN RETURN FOR A SMALL FEE 40 35 30 25 20 % 15 10 5 0 Online retailer searches and Web browsing behaviour Facebook/social media data Location data from your phone Health records purchases US UK Germany Source : Salama Privacy Study Conducted by Morning Consult October 2020
IN PRINCIPLE, HALF THE ADULT POPULATION WOULD BE WILLING TO LET THEIR PERSONAL DATA BE USED TO BE ABLE TO GET FREE ONLINE SERVICES AND CONTENT Chart Title 100% 90% 47 48 54 80% 70% 60% 50% 40% 53 52 46 30% 20% 10% 0% US UK Germany Would rather have a free service and let personal data be used Would rather pay a small fee and have personal data be protected Source : Salama Privacy Study Conducted by Morning Consult October 2020
38 11 37 11 % of US Mean monthly adults $ amount that 39 11 who are people are willing to willing to pay pay to for these apps, 34 12 guarantee excluding privacy of people who their data are not willing to pay 31 12 anything 32 12 Source : Salama Privacy Study Conducted by Morning Consult October 2020
6 28 6 28 Mean monthly % of UK £ amount that adults 6 29 people are who are willing to pay willing to for these apps, pay to excluding guarantee 6 25 people who privacy of are not willing their data to pay 6 30 anything 6 24 Source : Salama Privacy Study Conducted by Morning Consult October 2020
WHAT ARE SOME OF THE POSSIBLE ROUTES FORWARD ? Legislation that is agile and enforced Move from an advertising-dominant to a subscriber-led business model Commit to and enforce a “no-identification” approach
THE BIGGEST CHANGES ARE BEING DRIVEN BY GOOGLE AND APPLE Companies such as www.infosum.com and www.glimpseprotocol.io working with publishers to facilitate the querying of consumer data without accessing data or moving data outside their system Apple SKAdNetwork in IoS14 No personal identifiable information Aggregated data provided on app installation as a result of seeing media Google developments being planned Eliminating use of 3 rd party cookies Turtledove (advertiser can serve ad based on an interest, but cannot combine that interest with info about person or page; website cannot learn about visitor ad interests -> people can find out what interest groups they are in + advertisers cannot learn browsing habits of individuals) FLoC (browser groups flocks of similar people, prevents individual tracking)
DESPITE THE POSITIONING AND ADVERTISING, IPHONE USERS DO NOT APPEAR TO BE THAT DIFFERENT TO OTHERS % in US agreeing with the following statements 70 60 50 40 30 20 10 0 Prefer content to be free even if Companies using and sharing When it comes to terrorism and Protecting privacy of my data is I turn off ability of apps on my my personal data is used my data doesn’t really bother crime, governments need to one of my biggest priorities phone to track my location me access our personal data to keep us safe All adults Iphone users
WHAT ARE SOME OF THE POSSIBLE ROUTES FORWARD ? Legislation that is agile and enforced Move from an advertising-dominant to a subscriber-led business model Commit to and enforce a “no-identification” approach Greater transparency in the way that data is being used
PART OF THE ISSUE IS THE LACK OF TRANSPARENCY % of US adults who agree that % of US adults who agree that when it comes to online services and content Getting targeted ads in apps like You Tube, Facebook and Spotify is a small price to pay for being able to use for free I would rather have a free service and let my personal data be used I would rather pay for apps than get targeted ads I would rather pay a bit of money and have my data protected Source : Salama Study Conducted by Morning Consult October 2020
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