DATA PRIVACY FROM THE LEGAL TO THE ETHICAL ? ERIC SALAMA, SENIOR - - PowerPoint PPT Presentation

DATA PRIVACY FROM THE LEGAL TO THE ETHICAL ?

ERIC SALAMA, SENIOR FELLOW HARVARD KENNEDY SCHOOL M-RCBG 29TH 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

• f 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

5 10 15 20 25 30 35 40 45 Make their social media accounts private so that they are only visible to family and friends Clear their cookie cache Turn off location tracking tools Use an adblocker Change their browser settings Change their cookie settings

68% of US adults would like to protect their data more but find it hard to do

% US adults who always

LEGISLATION HAS NOT ACHIEVED ITS OBJECTIVE : PEOPLE DO NOT FEEL IN CONTROL AND OPT-IN APPEARS TO MAKE NO DIFFERENCE

10 20 30 40 50 60 Have total control over personal data and how it is used Have some control over personal data and how it is used Have very little control over personal 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

10 20 30 40 50 60 Hospitals and schools Banks and credit card companies Internet and cable providers Government Loyalty card providers Mobile device manufacturers Ecommerce companies Social media companies

% who trust completely or a lot each of the following institutions to protect their data and use appropriately

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

0% 20% 40% 60% 80% 100% US UK US UK 44 65 56 35 43 57 57 43

Chart Title

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

5 10 15 20 25 30 35 40 45 50 Journey data to help with Covid tracking Location data with police to improve public safety and response times Health activity data to facilitate research Journey movement data to help improve public transport Phone logs to decide where to locate free wifi Social media to help decide where to develop 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

• f 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

Source : Salama Privacy Study Conducted by Morning Consult October 2020

5 10 15 20 25 30 35 40 Online retailer searches and purchases Web browsing behaviour Facebook/social media data Location data from your phone Health records US UK Germany

%

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

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% US UK Germany 46 53 52 54 47 48

Chart Title

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

% of US adults who are willing to pay to guarantee privacy of their data Mean monthly $ amount that people are willing to pay for these apps, excluding people who are not willing to pay anything 38 37 39 34 31 32 11 11 11 12 12 12 Source : Salama Privacy Study Conducted by Morning Consult October 2020

% of UK adults who are willing to pay to guarantee privacy of their data Mean monthly £ amount that people are willing to pay for these apps, excluding people who are not willing to pay anything 28 28 29 25 30 24 6 6 6 6 6 6 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

• f consumer data without accessing data or moving data outside their system



Apple SKAdNetwork in IoS14

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No personal identifiable information

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Aggregated data provided on app installation as a result of seeing media

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Google developments being planned

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Eliminating use of 3rd party cookies

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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

• f 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

10 20 30 40 50 60 70 Prefer content to be free even if my personal data is used Companies using and sharing my data doesn’t really bother me When it comes to terrorism and crime, governments need to access our personal data to keep us safe Protecting privacy of my data is

• ne of my biggest priorities

I turn off ability of apps on my phone to track my location

% in US agreeing with the following statements

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

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 pay for apps than get targeted ads

% of US adults who agree that when it comes to online services and content

I would rather have a free service and let my personal data be used I would rather pay a bit of money and have my data protected

Source : Salama 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

SOME POLICY AREAS TO EXPLORE

 What is holding back enforcement of legislation and changes that need to be

made in approach ?

 Feasibility of and ability to enforce a no-personal-identification policy  Feasibility of and ability to enforce a dual-tier approach whereby consumers were

• ffered guarantee of freemium model and associated privacy options

 How best to encourage companies when they move in the right direction - Apple,

ethical advertisers etc

ANY THOUGHTS, COMMENTS, QUESTIONS, AREAS YOU WOULD LIKE TO EXPLORE TOGETHER?

ericsalama@hks.harvard.edu