Antitrust Law Daily Wrap Up, PRIVACY NEWS: Commissioner Brill discusses big data transparency, (Dec 17, 2015)
By Michael Menzhuber, J.D., LL.M.
Significant risks go along with the potential benefits of connected devices and big data, said FTC Commissioner Julie Brill today in a speech at the Center for Networked Information’s (CNI’s) Fall 2015 Membership Meeting in Washington, D.C.
Brill began her keynote address by suggesting that the CNI and FTC were both wrestling with many of the same questions about the benefits and risks of an increasing connected and data-driven society. She noted that, while there are resulting benefits from the improvement in the ability to analyze data, there are difficult challenges for privacy, security, and fairness. She also expressed her belief that consumers will be able to navigate and benefit from the big data world but that consumer trust was key.
Transparency, privacy, and trust. Consumers want to know, and should be able to find out, what information companies are collecting, where they are sending it, and how they are using it, Brill explained. Transparency is important in situations in where a company is operating behind the scenes in ways that can significantly affect consumers.
According to Brill, transparency is enhanced by giving consumers “just in time” information, at key moments, when it is most relevant to them. However, transparency should also “help consumers to navigate the complex ecosystem of data, device, and big data analytics operating behind the scenes” so they understand the practices affecting them and exercise choices about the practices. The failure to be transparent with consumers can result in a loss of consumer trust in a company and that lack of trust can have devastating results for that company.
Transparency, fairness, and trust. Big data analytics are being used to segment customers by interests and traits, and to make an increasing wide range of decisions about them, Brill noted. She suggested that transparency, for big data analytics, is necessary to engender trust by: (1) informing consumers about the significant impact that big data analytics can have on them; and (2) clarifying choices with respect to some kinds of data collection and use.
Congress has required some transparency in credit scoring and requires credit bureaus to make consumers’ credit reports available to them for free, the Commissioner stated. These transparency requirements and practices have been good for consumers, credit bureaus, and companies that rely on them to make business decisions.
Brill noted that there are a proliferation of other types of scores being used to make eligibility determinations covered by the Fair Credit Reporting Act. She suggested that the use of this new information, which goes beyond traditional credit files, raises questions about whether they may have disparate impacts along racial, ethnic, or other lines that the law protects.
Testing the effects of big data analytics might be a promising way to understand the full spectrum of scoring models used today, Brill explained. However, this approach might also present some challenges. She stated her belief that legislation was necessary to address many of the issues relating to the use of scoring models and that technologists also have a key role. Brill concluded by saying that everyone will be better off if there is transparency as to what is being done to keep data secure, to use it fairly, and generally meet stakeholders’ expectations for the kinds of sensitive data that is collected and stored.
News: Privacy ConsumerProtection FederalTradeCommissionNews