The private-data-for-services trade fallacy
I had a great time at Harvard Wednesday giving my talk (prezi here) about modeling challenges. The audience was fantastic and truly interdisciplinary, and they pushed back and challenged me in a great way. I’m glad I went and I’m glad Tess Wise invited me.
One issue that came up is something I want to talk about today, because I hear it all the time and it’s really starting to bug me.
Namely, the fallacy that people, especially young people, are “happy to give away their private data in order to get the services they love on the internet”. The actual quote came from the IBM guy on the congressional subcommittee panel on big data, which I blogged about here (point #7), but I’ve started to hear that reasoning more and more often from people who insist on side-stepping the issue of data privacy regulation.
Here’s the thing. It’s not that people don’t click “yes” on those privacy forms. They do click yes, and I acknowledge that. The real problem is that people generally have no clue what it is they’re trading.
In other words, this idea of a omniscient market participant with perfect information making a well-informed trade, which we’ve already seen is not the case in the actual market, is doubly or triply not the case when you think about young people giving away private data for the sake of a phone app.
Just to be clear about what these market participants don’t know, I’ll make a short list:
- They probably don’t know that their data is aggregated, bought, and sold by Acxiom, which they’ve probably never heard of.
- They probably don’t know that Facebook and other social media companies sell stuff about them even if their friends don’t see it and even though it’s often “de-identified”. Think about this next time you sign up for a service like “Bang With Friends,” which works through Facebook.
- They probably don’t know how good algorithms are getting at identifying de-identified information.
- They probably don’t know how this kind of information is used by companies to profile users who ask for credit or try to get a job.
Conclusion: people are ignorant of what they’re giving away to play Candy Crush Saga. And whatever it is they’re giving away, it’s something way far in the future that they’re not worried about right now. In any case it’s not a fair trade by any means, and we should stop referring to it as such.
What is it instead? I’d say it’s a trick. A trick which plays on our own impulses and short-sightedness and possibly even a kind of addiction to shiny toys in the form of candy. If you give me your future, I’ll give you a shiny toy to play with right now. People who click “yes” are not signaling that they’ve thought deeply about the consequences of giving their data away, and they are certainly not making the definitive political statement that we don’t need privacy regulation.
1. I actually don’t know the data privacy rules for Candy Crush and can’t seem to find them, for example here. Please tell me if you know what they are.