Friday, 1 February 2013

Google's 'iPhone tracking' breaks trust with users - The Guardian (blog)

They are at it again. This time Google is in the frame for allegedly tracking iPhone users' browsing habits without their permission or knowledge.

Some claim that millions may be affected by this privacy violation. However, so far, only about 70 people care enough to join a claim that Olswang are making against Google on behalf of the agitated victims.

This is groundbreaking in England. Usually, privacy infringements of this type are dealt with by the Information Commissioner, whose powers are now tough enough to deter data companies from misusing personal data. Instead, Olswang are mixing things up, by reportedly contending breach of privacy, confidence and computer misuse (computer misuse surely is better redressed as criminal matters).

It is unclear if the claim relates to the misuse of personal data (of the Data Protection Act kind) or some broader breach of privacy rights (such as that exists in England). As this claim develops, it will be helpful for this distinction to be clear. Conflating the two concepts makes understanding the claim and consequences difficult.

This is legally game-changing and matters to internet users, Google and data-driven companies.

Implications for users

Users will stop using services, if internet companies persist with gently, though sometimes not, disrespecting privacy boundaries in pursuit of growth or innovation.

A tacit understanding that users can control privacy is enough to keep us sharing. In exchange for free services, we trust the internet giants to keep our data safe and not to share or mine it. We accept that our data, personal or not, is used to target ads towards us. However, we are uncomfortable with companies going beyond this.

Where in place, internet companies must abide by privacy controls, as user trust is the glue keeping all this together. Internet companies certainly should not be doing anything that users don't consent to, or are not informed about, even if we do hastily click to accept volumes of terms and privacy policies.

As the recent example of Instagram shows, users revolt when internet companies overstep the digital trust line. Internet companies must maintain users' trust if this is going to work in the long term.

Implications for Google

I cannot imagine that Google will allow this case to go all the way in enabling a judge to rule on its behaviour. The claimants too would need steely resolve and a few deep breaths before stepping into the ring with Google. But Olswang are making it difficult for Google to obfuscate by taking this aggressive tact to get its attention.

In contrast to regulatory actions, which are perceived as being behind closed doors with a vetted public report at the end, a court case is different, since it's more exposed to the public. It could bring more unwanted attention Google's way. However, it's early days on that front and unlike the American example in 2012, Google aren't yet flinching.

Google's biggest challenge will be from the court of public opinion, when the users demand en masse that Google stop taking liberties in its legitimate pursuits to explore data.

Implications on data-driven companies

This case will also have far-reaching implications for how other online companies use data. Some companies trade data, some collect it and others profile and analyse it. Largely, companies use data to provide users with products.

Most of the time data, personal or not, is just used for marketing purposes. Sure, it's creepy to think that someone is sifting through raw data to determine the best time to sell chocolate, but that's modern life. It's legal and legitimate (of sorts).

The real problem is if the Googles of the world continue to erode trust and make it difficult for everyone else to use technology on a level playing field. Suddenly all companies are perceived as data voyeurs and by and large, they are not interesting, beyond understanding what product to flog next.

Brett Farrell is general counsel for an online financial services company. He tweets at @BrettTechLawyer

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