Antitrust Law Daily Wrap Up, PRIVACY NEWS: Commissioner Brill addresses big data progress, challenges to consumer trust, (Oct 15, 2014)

By Greg Hammond, J.D.

FTC Commissioner Julie Brill spoke before the 36th International Conference of Data Protection and Privacy Commissioners in Balaclava, Mauritius, today. In her prepared remarks, entitled “Big Data and Consumer Trust: Progress and Continuing Challenges,” Brill discussed how companies and data brokers can improve data security, sensitive information protection, and ethical data practices.

“I believe we are starting to realize some of the benefits of bringing more data to bear on our major social challenges,” Commissioner Brill stated, noting how big data has led to positive developments in health care, reduction of energy and costs, and other important societal issues. “But I also believe that big data will not realize its full potential unless companies, researchers and policymakers work to build consumer trust in the big data enterprise.”

The commissioner noted three challenges to building consumer trust and realizing big data’s full social and economic potential: data security, sensitive information, and discrimination and unethical data practices.

First, Brill noted that “there is no privacy without appropriate data security.” Consequently, the commissioner suggests that companies: (1) closely examine the data they have; (2) determine what they actually need to serve their customers; and (3) “robustly deidentify” the unnecessary data, and promise not to reidentify it.

Next, Brill recommends that companies give consumers greater control over the collection and use of their sensitive data, such as health information. “Companies should develop intuitive and immersive consumer dashboards, apps and other tools that will engage and, at the same time, inform consumers about how their sensitive health information is being collected and used,” she said. Further, data brokers should empower consumers with easy-to-use portals, giving them the ability to decide what private information they want to keep away from big data driven marketing.

Finally, the commissioner raised the issue of unfair or unethical treatment of consumers, as companies have increasingly powerful analytical tools at their disposal containing massive amounts of data regarding individual consumers. Brill therefore recommends that data brokers take proactive steps in assessing the possible impacts of their “products that profile consumers by race, ethnicity or other sensitive classifications, or that are proxies for such sensitive classifications.” Additionally, she suggests that companies provide consumers with better portals, dashboards, and interfaces to control their privacy and security, and to make ethics reviews part of companies’ big data analytics business practices.

News: Privacy FederalTradeCommissionNews