It is no surprise that Senators John Kerry and John McCain have been applauded for introducing the “Commercial Privacy Bill of Rights Act of 2011.’’ The persistent drumbeat of stories chronicling breaches. lost laptops, phishing schemes and behavioral targeting has pushed data collection practices and abuse to near the top of the public agenda.
Yet, while it is true, as the bill cites, that “many collectors of personally identifiable information have yet to provide baseline fair information practice protections for individuals,” it is wrong to suggest that all data collection is suspect. In fact, consumers benefit daily from the data collected by the companies they keep. As the discussion about privacy proceeds, it would be good to keep not just the worst but the best practices in mind.
Consider the value revealed at the check-out line at your local supermarket. In exchange for letting the company keep track of your purchases through programs like Safeway’s Club Card, shoppers get coupons for products and categories linked to what they buy.
If you use a credit care, you rest easier know that the data collected combined with powerful anti-fraud software will help guard against loss should that card be lost or stolen. It is reassuring to the point that even when we use the card ourselves in new ways or new places, programs like the one deployed by American Express will pause to confirm our identity.
And who will deny the value of the recommendation engines used by companies like Netflix and Amazon? It is reassuring when we log on to these services to find that they have been thinking about us based on what they know about us.
In each case, the link between personal data and consumer value is clear. In each case, the use of the collected data is limited to the purpose for which it was collected. And in each case, there is consumer access, control or, at least, visibility. These companies and others like them represent the best practices when it comes to data collection. In their experiences are lessons that can be learned outside and beyond the black-and-white, opt-in-or-opt-out nature of legislation in general and the Kerry/McCain bill in particular.
In fact, there is one industry that could benefit from greater use of the personal data it collects: the mobile phone business.
Consider the breadth of choices facing consumers when it comes time to select a mobile phone and data plan. It ought to be a matter of customer service for AT&T and others to let customers know if there is a better plan based on their use. It does not happen.
As the debate over the Kerry/McCain bill ramps up to a hearings and a vote, the way in which companies use data about us in support of us ought to get full attention. It is an area where self-governance represents an opportunity to produce real consumer value. It may well be the companion carrot to the stick of laws and regulation.
