Modern consumers face a conundrum. How can they balance the benefits of technology with the risks of their sensitive data falling into the wrong hands?
We are now in the era of information. Data is raising the interest of business leaders “ and the concern of citizens.
Every minute, over 70,000 transactions and nearly 4 million Google searches take place. Meanwhile, massive data security debacles “ such as the Cambridge Analytica scandal “ have left many consumers worried about the safety of their sensitive information.
The Straw That Broke the Camel’s Back
The 2018 Cambridge Analytica scandal shined a revealing and unsettling light on the lax data security practices of major corporations. News of the data breach first emerged through the combined investigative journalism of the New York Times, the Guardian and the London Observer in May and April of that year.
The investigations revealed that a researcher purchased the private information of Facebook users from Cambridge Analytica. At the time, the professor claimed he was using the information for an academic study. However, journalists later revealed that this was anything but the case. Instead, the information was used to manipulate the ongoing presidential election in the United States.
Astoundingly, only 305,000 people consented to the quiz used to violate their privacy. However, hidden in the small print was a provision where users agreed to allow the quiz to collect information about their friends. Resultantly, the scandal compromised approximately 87 million Facebook users.
The Cambridge Analytica event brought the ethics of Facebook’s data handling policies to the forefront. Supposedly, Facebook stopped the practice of allowing third-party vendors to collect information about users’ friends in 2015. This change was an about-face from Facebook’s traditionally open-source developer policy. However, there was little done to reinforce this new position.
In the meantime, the ability of corporations to collect increasingly granular sensitive information about consumers continues to grow. Often, the ways that companies collect information improves far faster than legislators can create laws to protect consumers.
The Thin Line Between Creepy and Convenient
According to RSA Network Security Company, most consumers believe that using data to create personalized ads is unethical. Furthermore, nearly 60% of consumers believe that personalized newsfeeds are unethical. Nevertheless, millions of consumers continue to use platforms such as Facebook, Twitter and Instagram that collect users’ data.
Today, social media is as ingrained in society as radio and television. It’s a natural part of modern life. The owners of the platforms will argue that users offer their consent by choosing to use their services. However, representatives of Germany’s antitrust regulatory agency have expressed that users can use the service and share their data, or not use the service and keep their information private. Resultantly, expressed German lawmakers, consumers don’t have a real choice in the matter.
Because social media is now a normal part of modern living, it’s providers cannot argue that the use of their platform is voluntary, expressed the officials.
This point is still open for debate, but one thing is for sure: European citizens are much more protective of their sensitive data. In a recent survey, 60% of American adult respondents expressed that there are ethical ways for companies to use behavioral data, compared to only 43% of German respondents.
The global debate about data privacy is ongoing and will likely continue for some time. Nevertheless, the onus is on corporations to do the right thing and protect consumer data.
Does Data About Streaming Activity Serve Your Best Interests?
70 % of Netflix users make viewing decisions based on personalized recommendations, according to a recent McKinsey study. Platforms such as YouTube and Netflix analyze your consumption history and offer you additional entertainment choices. They’re often so effective that they can prove addicting.
Proponents for personalization argue that data collection is just one of many tools that companies use to sustain profit. Privacy advocates, however, argue that the practice represents unfair exploitation of human psychology that leads to addiction.
The question remains about who will take the lead in consumer data privacy. Will politicians or corporations do what it takes to keep consumer information safe?
Personalized advertising improves the user experience. However, many consumers doubt that it’s worth blindly surrendering their privacy.
European citizens and legislators are more protective of sensitive information compared to Americans. In the European Union, privacy is a right; in America, it’s considered a privilege.
In 2016, for example, 86% of respondents expressed that organizations should inform them when their data is collected. This point is important, as malicious actors can use anonymous data to reconstruct and exploit users’ identities. Furthermore, it’s not necessary to collect personally identifiable information to provide a personalized experience.
It’s not reasonable to expect consumers to take the many complicated steps necessary to protect their data across every device and platform. As a result, marketers continue to have free reign over how they collect and use consumer data “ for now.
