Data Privacy vs. Convenience

 In Business, Trending

How much privacy do consumers really expect?

On June 2, 2015, Congress passed the USA Freedom Act, operating to set the strictest limits yet to the National Security Agency’s (NSA) powers in post-9/11 history. The primary issue addressed by the new act is the NSA’s collection and storage of phone records and data—mainly times, dates, and location of phone calls by American citizens.

While Americans were incensed by the NSA’s surveillance, the fact is that we are giving away far larger quantities of data in far greater detail every day, to companies who make immense profit from this knowledge. Which begs the question, what do consumers really want—privacy or convenience?

Many people would say that they value privacy, but when push comes to shove, most of us opt for convenience. We like the way Google gives us several nearby results when we search doughnut shops, and then offers us directions. We like staying continuously connected with friends and family on Twitter and Facebook. We’d rather not pay for file storage and photo organization. Knowingly or not, we as digital citizens have entered into a tacit agreement with companies to use free products and services in exchange for providing information about ourselves as consumers.

Many consumers are happy to provide information about themselves to unlock a crucial app function (like location for mapping services), and might not mind receiving targeted advertising in exchange for free services. However, there is a grey area around what it means for consumers to give true consent to collection and use of their behavioral data.

What are a company’s responsibilities to consumers in regards to privacy concerns?

  1. Make the “deal” with consumers explicit instead of hidden.

Tell consumers early and often about the information you are collecting and why you need to it to provide them with products and services. Use easily understandable language and accessible formats so that users know what they are agreeing to.

  1. Be transparent about selling data to third-parties.

While consumers are becoming more informed about how companies use their data, businesses must make a good faith effort to increase transparency about what entities will ultimately have access to downstream user data, and how much data is being shared with third-parties.

  1. Give users control of their privacy settings.

Consumers should be given access to settings that allow them to opt-in to different levels of data sharing. Businesses should clearly define their policies on collection and use of customer data in return for the customer’s use of products or services they offer. In addition, users should be able to select a sunset timeline for use of their data and parameters for types of data that are shared with third-parties.

What are your thoughts on the privacy v. convenience debate?

Let Us Know in the Comments Section Below!

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