This week, the Federal Trade Commission called on Congress to enact legislation that would regulate the companies that compile and sell consumer data. The agency argued that consumers have a right to privacy, and as such they should be able to access the information that is collected about them. Additionally, the FTC called for online companies to embrace “Do Not Track,” (also referred to as “do not collect”) a mechanism that allows consumers to opt out of having their digital activities monitored.
While advocacy groups have lauded the FTC’s call for greater protection of consumer privacy, some parties are not so pleased. The credit rating giant Experian, which deals in the collection and selling of consumer data, see the FTC’s involvement as a risk to their business model. Online advertisers are also concerned, because they feel “Do Not Track” will severely hurt their ability to connect with consumers. As one online executive, quoted in The New York Times, said: “{do not collect} is basically death for online advertising.” While this statement is certainly a bit of an overreaction, it does raise an interesting point. How can online advertisers function if there’s no one to communicate to?
How Data Collection Companies Should Handle “Do Not Track”
The truth of the matter is that those who have a vested interest in data collection need not give up just yet. Even though a “Do Not Track” feature is likely to become a common option for consumers, it’s not clear that most people will even choose this option. Undoubtedly, some will, but this is a necessary casualty in the greater war of consumer privacy. Consumers need to be protected.
Rather than fight the “Do Not Track” initiative, companies that rely on data collection should focus on communicating to consumers what the benefits of tracking are. For Experian, for example, their data collection helps to generate consumer credit scores, an essential tool for most American citizens. This benefit should be relayed to consumers, so that they can understand why the organization needs their data. The same goes for online advertisers. One of the main reasons that online advertisers want data on consumers is so that they can send those people offers that they might actually be interested in. They should explain to customers that the data they collect allows them to share offers and products that they’ll actually enjoy. Advertisers can essentially say to consumers (in a much less blunt way): “You’re going to get advertised to no matter what, so wouldn’t you prefer that the advertisements are for something you actually like?”
The Ethical Implications Behind “Do Not Track”
At the end of the day, there are three major ethical principles that come into play in regards to this issue:
First, there is the principle of autonomy. As a society, we believe that people are autonomous beings, and therefore they have the right to operate independently. In this case, the notion of autonomy is being extended to relate to consumer protection, which is a reasonable stretch. People are independent, and as such they have the right to control who approaches them, and by what means.
Second, there is the principle of accountability. Accountability is generally defined as the willingness or obligation to accept responsibility. In this case, it is the companies that rely on data collection who are being held under an increased standard of accountability. They have a choice; they can willingly change their policies, or they can wait until they are obligated. It will be much better for them if they choose the first option. By willingly embracing the increased standards of accountability, companies can show that they have nothing to hide, but are rather offering a valuable service to consumers.
Third, there is the principle of transparency. Transparency literally means “to show light through,” and it implies that something is being shown in its entirety. In this case, companies are being asked to be transparent when revealing the data they are collecting, the methodology by which it is being collected, and the ways in which it is being used. Most respectable companies are not doing anything unethical by collecting data, and it is in their best interest to communicate this to consumers. Doing so will allay misguided fears by the public, and could possibly lead to the ability to collect even more information. After all, if a person believes that giving a company their information will have a positive impact on their life, why wouldn’t they go ahead and do it?
The Benefits of Embracing “Do Not Track”
If one reads the writing on the wall, it’s hard to believe that the regulation of data collecting and consumer tracking won’t happen. Companies that embrace this fact now, while acknowledging an extended notion of individual autonomy, will find themselves in a vastly preferable position to those who try to fight it. Most consumers don’t want to be in the dark when they log online; they just want to know what’s going on. By helping consumers to understand why their data is so valuable, companies can ensure make sure that they continue to receive that data. Ultimately, this approach can produce a win-win relationship between companies, and the consumers that they so desperately wish to understand.
As a Newbie, I am always exploring online for articles that can help me. Thank you