Antitrust Law Daily Wrap Up, PRIVACY NEWS: Brill discusses role of policymakers, academics, business leaders in protecting consumer privacy in age of big data, (Mar 11, 2014)

By Linda O’Brien, J.D., LL.M.

Technology is transforming consumers’ lives. While consumers are eager to reap the potential benefits of innovative data flows and new technologies, policymakers and academics also see risks posed by big data analytics and the vast storehouses of data it yields, FTC Commissioner Julie Brill noted in her March 10 speech before the Joint USCIB/BIAC/OECD Conference on “Growth, Jobs, & Prosperity in the Digital Age: OECD Shapes the Policy Environment” in Washington, D.C.

Brill began her keynote address by stating that the estimates of data consumers collectively generate are staggering. One estimate suggests that 1.8 trillion gigabytes of data were created in 2011 alone. This gold mine of data could be put to important and transformative uses, she said.

In Brill’s view, one of the most troubling practices that needs addressing is the collection and use of data to make sensitive predictions about consumers, such as those involving their health conditions, financial status, sexual orientation, and race. She also raised concerns about the risk that such sensitive personal information may fall into the wrong hands through a data breach, and the damage that is done to society’s sense of privacy when such information is available for analysts to examine without consumers’ knowledge or consent, and for anyone to buy at the going rate.

There is a benefit that consumers are now more aware of how much their personal data is free-floating in cyberspace, ripe for any data miner—government or otherwise—to collect, package, use, and sell, Brill observed. Leaders within the business community have joined President Obama in recognizing that rebuilding the trust of individuals is essential to the success of all programs and services - both governmental and commercial—built on big data analytics. While national security issues must be addressed separately from the commercial privacy issues, Brill believes that the promise of big data will not be reached until society addresses some of the key consumer privacy concerns stemming from the creation, collection, and use of sensitive consumer data and profiles.

Brill next highlighted five steps that should be taken by policymakers and industry in the commercial sphere to restore consumer trust and create an ecosystem in which big data can reach its full potential. First, companies should be encouraged to de-identify the data they collect whenever feasible. The FTC has developed best practices around de-identification that strike an appropriate balance and include robust technologies and social agreements to not associate de-identified data with particular individuals. Second, the FTC supports the creation of entities and structures that appropriately monitor the ethical use of data. Third, the FTC supports improvement of the commercial privacy laws in the United States. She urged Congress to enact three pieces of legislation: (1) data broker legislation that would require data brokers to provide notice, access, and correction rights to consumers scaled to the sensitivity and use of the data at issue; (2) baseline privacy legislation for the commercial arena; and (3) data security legislation.

As a fourth step, Brill believes action is needed to address consumers’ loss of control over their most private and sensitive information, even before legislation is enacted. Toward this objective, Brill has started a comprehensive initiative, “Reclaim Your Name,” which would give consumers more control over decisions like how much information to share, with whom, and for what purpose. Lastly, interoperability among different national jurisdictions should be encouraged. As policymakers, one collective task is to ensure that consumer privacy is protected as data flows across borders.

Policymakers, academics, consumer advocates, and business leaders all have a role to play in enhancing consumer privacy protection in this age of big data, cross border data flows, and other rapid technological development. By collectively together to implement the above steps, a global ecosystem can be created that respects consumer privacy and engenders consumer trust, allowing big data to reach its full potential to thrive and benefit everyone, she concluded.

News: ConsumerProtection Privacy FederalTradeCommissionNews