In the Internet age, data collection is an industry of immense commercial value, often referred to as “digital gold.”Frederike Kaltheuner, a spokesperson for Privacy International, stated, “Thousands of companies are tracking your online behavior and collecting data about you. They track and collect your data without your knowledge through online channels, and even via your loyalty cards and your phone’s Wi-Fi.”
Quantium, Acxiom, Coreloc, Experian, and eBureau are all globally renowned data collection firms. According to data from the U.S. Federal Trade Commission (FTC), these companies have the capacity to store up to 3,000 data entries for every consumer worldwide.Ironically, it is you, me, and everyone else who browses the web who drives this data collection. In this vast consumer market, we often unwittingly hand over our personal data, which ultimately ends up in their hands.As the individuals directly affected, we have very little knowledge of—and limited control over—the volume of data they collect, how it is used, or how to delete it. These data collection processes not only undermine individual privacy and consumer freedom, but the quality and accuracy of the data are also questionable for the companies purchasing it.Furthermore, the processes involved in data collection expose the entire digital industry to incredible cybersecurity risks.
Consumer Vulnerabilities
Ms. Kaltheuner stated that over the past six years, more than 600 apps have had access to her iPhone data.To investigate exactly how much each app knew about her, she did the legwork that none of us would bother with: she spent several months reading every privacy policy and contacting the companies behind the apps to ask exactly how much information they held about her.Most people don’t bother to read online privacy policies, so we know very little about exactly how much personal data we’re sharing.It’s estimated that if someone were to read all the privacy policies we typically encounter, it would take 8 hours a day for 76 days to get through them all! Kaltheuner noted that reading privacy policies “is not a civic duty; rather, companies should make protecting customer privacy the default setting.”
Data Unreliability and Online Risks
Not only have companies around the world paid billions of dollars for this data, but the accuracy of all this data is also questionable. Pamela Dixon, executive director of the World Privacy Forum, said that the data collection algorithms used by these data companies are configured based on predictions of consumer behavior and are not foolproof.After reviewing her own data records at a data company, Dixon discovered that many of the details about her were incorrect. Susan Bidel, a senior analyst at Forrester Research, confirmed this, estimating that only 50 percent of the collected data is accurate.An executive at the security firm RSA noted that it is not just data companies and advertising firms that are collecting data—many others are as well. “Hackers can often figure out your security questions—such as your date of birth or your mother’s maiden name—because you’ve already shared that information online.Hackers can piece together a fairly accurate profile from just a few fragments of your information and use it for identity theft.”
Regaining Control of Our Personal Information
There are many ways we can regain control over the personal data being collected. On an individual level, you can limit the amount of data shared with third parties by using ad blockers or a VPN, changing your browser settings, browsing in incognito mode, and blocking cookies.The General Data Protection Regulation (GDPR) recognizes that consumers are effectively unable to fully protect themselves, so the responsibility for protecting consumer data should fall on the companies that benefit from it.With the implementation of the GDPR, if a company wishes to collect data from European citizens—whether they are end consumers, employees, or contractors—the company must inform them that their personal data is being collected and ensure that it has obtained their consent.
St. John Deakins, CEO of the marketing firm Citizen Me, has proposed a further solution. He believes consumers should have the right to directly control their own data and monetize it. Using a mobile app, consumers can take various personality and consumer preference quizzes and voluntarily share their data anonymously.
Companies seeking accurate marketing data for their advertising campaigns can purchase this data directly from individuals. He said, “If the data is provided voluntarily and in real time, it carries more credibility and value.”” Since many major brands are already seeking more ethical sources of data, Deakins believes his project could even outperform the largest data brokers. According to Deakins, their mission is: “To make the data market more transparent.”
