Chapter 5 Information Privacy

Ethics for the Information Age Chapter 5 Information Privacy Learning Objectives 5.1 Introduction 5.2 Perspectives on privacy 5.3 Information disclosures 5.4 Data mining 5.5 Examples of consumer or political backlash 5.1 Introduction Information Technology Erodes Privacy • Computers, databases, and Internet enable ever-improving information – collection – exchange – combination – distribution • Easier than ever to get information about others, including total strangers • Scott McNealy: “You have zero privacy anyway. Get over it.” • Is privacy important? If so, can we protect it? Themes of This Chapter • What is privacy? Do we have a natural right to privacy? • Tension between right to privacy and need to be able to know enough about others to trust them • How organizations collect information about our daily activities • How profiles of individuals are created through data mining • How marketers benefit from having profiles of consumers • Techniques now being extended to realm of politics 5.2 Perspectives on Privacy Defining Privacy • Privacy related to notion of access • Access – Physical proximity to a person – Knowledge about a person • Privacy is a “zone of inaccessibility” • Privacy violations are an affront to human dignity • Too much individual privacy can harm society • Where to draw the line? Harms of Privacy • Can be a cover for illegal or immoral activities • Can be a burden on the nuclear family • Can hide dysfunctional families • People on society’s fringes can be ignored Benefits of Privacy • Necessary for each individual’s growth as a unique person • Signals that individuals are responsible for themselves • Recognizes everyone’s true freedom • Lets people be themselves • Allows people to shut out world so they can focus, be creative, and grow intellectually and spiritually • Fosters the development of loving, trusting, caring, intimate relationships Is There a Natural Right to Privacy? (1 of 3) • Argument in favor • Right to privacy may have grown out of property rights – Europeans have historically viewed the home as a sanctuary – English common law tradition: “A man’s home is his castle” – Coercive Acts (1773) led to 3rd Amendment to U S Constitution: “No soldier shall, in time of peace be quartered in any house, without the consent of the Owner, nor in time of war, but in a manner to be prescribed by law.” • Warren and Brandeis – Warren shocked at newspaper coverage of daughter’s wedding – “The Right to Privacy” published in 1890 – Defined privacy as “the right to be let alone” – Right to privacy now recognized in courts across America “Right to Be Let Alone” (Warren and Brandeis) Warren and Brandeis argued that the legal system should protect people’s “right to be let alone.” Is There a Natural Right to Privacy? (2 of 3) • Argument against (Judith Jarvis Thomson) • Nobody seems to know what privacy is • Problems with defining privacy as “the right to be let alone” – One the on hand, definition is too narrow – doesn’t include covert spying – On the other hand, definition is too broad – does include assault • Whenever a right to privacy is violated, another right is violated as well • Therefore, no need to define privacy or privacy rights precisely Is There a Natural Right to Privacy? (3 of 3) • Conclusion • Privacy is not a natural right, but it is a prudential right • Rational people agree to recognize some privacy rights because granting these rights benefits society Privacy and Trust • Perhaps modern life is actually more private than life centuries ago – Most people don’t live with extended families – Automobile allows us to travel alone – Television v. public entertainment • Challenge: we now live among strangers • Remedy: establishing reputations – Ordeal, such as lie detector test or drug test – Credential, such as driver’s license, key, I D card, college degree • Establishing reputation is done at the cost of reducing privacy Case Study: New Parents • Sullivans have a baby girl • Both work; they are concerned about performance of full-time nanny • Purchase program that allows monitoring through laptop’s camera placed in family room • They do not inform nanny she is being monitored Rule Utilitarian Evaluation • If everyone monitored nannies, it would not remain a secret for long • Consequences – Nannies would be on best behavior in front of camera – Might reduce child abuse and parents’ peace of mind – Would also increase stress and reduce job satisfaction of child care providers – Might result in higher turnover rate and less experienced pool of nannies, who would provide lower-quality care • Harms appear greater than benefits, so we conclude action was wrong Social Contract Theory Evaluation • It is reasonable for society to give people privacy in their own homes • Nanny has a reasonable expectation that her interactions with baby inside home are private • Sullivan’s decision to secretly monitor the nanny is wrong because it violates her privacy Kantian Evaluation • Imagine rule, “An employer may secretly monitor the work of an employee who works with vulnerable people” • If universalized, there would be no expectation of privacy by employees, so secret monitoring would be impossible • Proposed rule is self-defeating, so it is wrong for Sullivans to act according to the rule Virtue Ethics Evaluation • Sullivans are responsible for well-being of their daughter • Chose nanny through concern for baby: characteristic of good parents • Daughter is truly defenseless, unable to communicate with them • Decision to monitor can be viewed as characteristic of good parents • Would also expect them to cease monitoring once assured nanny is doing well 5.3 Information Disclosures Public Records • Public record: information about an incident or action reported to a government agency for purpose of informing the public • Examples: birth certificates, marriage licenses, motor vehicle records, criminal records, deeds to property • Computerized databases and Internet have made public records much easier to access Information Held by Private Organizations • Credit card purchases • Purchases made with loyalty cards • Voluntary disclosures • Posts to social network sites Data Gathering and Privacy Implications • Facebook tags • Facebook Login • Enhanced 911 services • OnStar • Rewards or loyalty programs • Automobile “black boxes” • Body scanners • RFID tags • Implanted chips • Mobile apps • Medical records • Digital video recorders • Cookies Facebook Tags • Tag: Label identifying a person in a photo • Facebook allows users to tag people who are on their list of friends • About 100 million tags added per day in Facebook • Facebook uses facial recognition to suggest name of friend appearing in photo • Does this feature increase risk of improper tagging? Enhanced 911 Services • Cell phone providers in United States required to track locations of active cell phones to within 100 meters • Allows emergency response teams to reach people in distress • What if this information is sold or shared? Rewards or Loyalty Programs • Shoppers who belong to store’s rewards program can save money on many of their purchases • Computers use information about buying habits to provide personalized service – ShopRite computerized shopping carts with pop-up ads • Do card users overcharged? pay less, or do non-users get Body Scanners (1 of 2) • Some department stores have 3-D body scanners • Computer can use this information to recommend clothes • Scans can also be used to produce custom-made clothing Body Scanners (2 of 2) A computer takes a customer’s measurements. (A P photo/Richard Drew) RFID Tags • RFID: Radio frequency identification • An RFID tag is a tiny wireless transmitter • Manufacturers are replacing bar codes with RFID tags – Contain more information – Can be scanned more easily • If tag cannot be removed or disabled, it becomes a tracking device RFID Tags Speed Inventory Process Employees take inventory more quickly and make fewer errors when items are marked with R FID tags. Implanted Chips • Taiwan: Every domesticated dog must have an implanted microchip – Size of a grain of rice; implanted into ear – Chip contains name, address of owner – Allows lost dogs to be returned to owners • RFID tags approved for use in humans – Can be used to store medical information – Can be used as a “debit card” Mobile Apps • Many apps on Android smartphones and iPhones collect location information and sell it to advertisers and data brokers – Angry Birds – Brightest Flashlight • Flurry: a company specializing in analyzing data collected from mobile apps – Has access to data from > 500,000 apps Facebook Login • Allows people to login to Web sites or apps using their Facebook credentials • App’s developer has permission to access information from person’s Facebook profile: name, location, email address, and friends list OnStar • OnStar manufactures communication system incorporated into rear-view mirror • Emergency, security, navigation, and diagnostics services provided subscribers • Two-way communication and GPS • Automatic communication when airbags deploy • Service center can even disable gas pedal Automobile “Black Boxes” • Modern automobiles come equipped with a “black box” • Maintains data for five seconds: – Speed of car – Amount of pressure being put on brake pedal – Seat belt status • After an accident, investigators can retrieve and gather information from “black box” Medical Records • Advantages of changing from paper-based to electronic medical records • Quicker and cheaper for information to be shared among caregivers – Lower medical costs – Improve quality of medical care • Once information in a database, more difficult to control how it is disseminated Digital Video Recorders • TiVo service allows subscribers to record programs and watch them later • TiVo collects detailed information about viewing habits of its subscribers • Data collected second by second, making it valuable to advertisers and others interested in knowing viewing habits Cookies • Cookie: File placed on computer’s hard drive by a Web server • Contains information about visits to a Web site • Allows Web sites to provide personalized services • Put on hard drive without user’s permission • You can set Web browser to alert you to new cookies or to block cookies entirely General Data Protection Regulation • General Data Protection Regulation (G D P R): set of rules governing collection of information from citizens of European Union • Requires companies to… – Disclose information they are seeking to collect – Disclose why they are collecting it – Get permission before collecting it • Responding to GDPR, most large American companies are adopting new privacy guidelines – Web-site banners informing users, asking for consent 5.4 Data Mining Data Mining Defined • Searching records in one or more databases, looking for patterns or relationships • Can be used to create profiles of individuals • Allows companies to build more personal relationships with customers Google’s Personalized Search • Secondary use: Information collected for one purpose use for another purpose • Google keeps track of your search queries and Web pages you have visited – It uses this information to infer your interests and determine which pages to return – Example: “bass” could refer to fishing or music • Also used by retailers for direct marketing Limiting Information Google Saves • You can limit amount of information Google saves about your activities • Privacy Checkup lets you pause collection of personal information – Search queries and other Google activity – Location information collected from signed-in devices ▪ Where you have gone ▪ How often you have gone there ▪ How long you have stayed ▪ Customary routes of travel – Contact and calendar information – Recordings of your voice and accompanying audio – YouTube search queries – YouTube videos you have watched Secondary Uses of Information Collaborative Filtering • Form of data mining • Analyze information about preferences of large number of people to predict what one person may prefer – Explicit method: ask people to rank preferences – Implicit method: keep track of purchases • Used by online retailers and movie sites Ownership of Transaction Information • Who controls transaction information? – Buyer? – Seller? – Both? • Opt-in: Consumer must explicitly give permission before the organization can share info • Opt-out: Organization can share info until consumer explicitly forbid it • Opt-in is a barrier for new businesses, so direct marketing organizations prefer opt-out “Target”-ing Pregnant Women • Most people keep shopping at the same stores, but new parents have malleable shopping habits • Targeting pregnant women a good way to attract new customers • Target did data mining to predict customers in second trimester of pregnancy – Large amounts of unscented lotion, extra-large bags of cotton balls, nutritional supplements • Mailings included offers for unrelated items with offers for diapers, baby clothes, etc. Credit Reports • Example of how information about customers can itself become a commodity • Credit bureaus – Keep track of an individual’s assets, debts, and history of paying bills and repaying loans – Sell credit reports to banks, credit card companies, and other potential lenders • System gives you more choices in where to borrow money • Poor credit can hurt employment prospects Targeted Direct Mail • Businesses mail advertisements only to those most likely to purchase products • Data brokers provide customized mailing lists created for information gathered online and offline • Example of making inferences for targeted direct mail – Shopping for clothes online + frequent fast-food dining + subscribing to premium cable T V channels → more likely to be obese • Two shoppers visiting same site may pay different prices based on inferences about their relative affluence Microtargeting • Political campaigns determine voters most likely to support particular candidates – Voter registration – Voting frequency – Consumer data – GIS data • Target direct mailings, emails, text messages, home visits to most likely supporters Social Network Analysis • Collect information from social networks to inform decisions • Bharti Airtel “influencers” (India) offers special promotions to • Police use Facebook and Twitter posts to deploy officers on big party nights • Banks combine social network data with credit reports to determine creditworthiness Controlling Your Facebook Info (1 of 2) • You can change your Facebook settings to minimize who can see what you’re doing • Privacy settings – Who can see your friends list? – Who can see your future posts? – Who can look you up using your email address? – Who can look you up using your phone number? – Do you want search engines to link to your profile? – Limit audience for posts you’ve shared? Controlling Your Facebook Info (2 of 2) • Timeline and Tagging – Who sees tag suggestions when photos look like you? – Review posts you’re tagged in? – Review tags people add to your posts? • Location History • Ads – Based on – Relationship status – Employer – Job title – Education – Data from partner – Activity on Facebook Company Products – Social actions Netflix Prize • Netflix offered $1 million prize to any group that could come up with a significantly better algorithm for predicting user ratings (2006) • Released more than 100 million movie ratings from a half million customers – Stripped ratings of private information • Researchers demonstrated that ratings not truly anonymous if a little more information from individuals was available • U.S. Federal Trade Commission complaint and lawsuit • Netflix canceled sequel to Netflix Prize (2010) AOL Search Dataset • AOL researcher Dr. Chowdhury posted three months’ worth of user queries from 650,000 users (2006) • No names used; random integers used to label all queries from particular users • Researchers identified some users from queries; e.g., many people performed searches on their own names • New York Times investigation led to public outcry • AOL took down dataset, but already copied and reposted • AOL fired Dr. Chowdhury and his supervisor 5.5 Examples of Consumer or Political Backlash Marketplace: Households • Lotus Development Corporation developed C D with information on 120 million Americans • Planned to sell C D to small businesses that wanted to create mailing lists based on various criteria, such as household income • More than 30,000 consumers complained to Lotus about invasion of privacy • Lotus dropped plans to sell CD Facebook Beacon • 2007: Facebook announced Beacon, a targeted advertising device – Facebook user makes purchase – Facebook broadcasts purchase to user’s friends – Based on opt-out policy: users enrolled unless explicitly asked to be excluded • A significant source of advertising revenue for Facebook • MoveOn.org led online campaign lobbying Facebook to switch to an opt-in policy • Mark Zuckerberg apologized, and Facebook switched to an opt-in policy Malls Track Shoppers’ Cell Phones • In 2011 two malls recorded movement of shopper by tracking locations of cell phones – How much time people spend in each store? – Do people who shop at X also shop at Y? – Are there unpopular areas of mall? • Small signs informed shoppers of study • After protest, mall quickly halted study iPhone Apps Upload Address Books • In 2012 a programmer discovered Path was uploading iPhone address books without permission • Internet community pointed out this practice violated Apple’s guidelines • CEO of Path apologized; app rewritten • Twitter, Foursquare, and Instagram also implicated for same practice Instagram’s Proposed Change to Terms of Service • Late 2012: Instagram announced changes – Privacy policy – Terms of service • Legal experts: Instagram and Facebook would have right to use photos in ads without permission • Instagram CEO: New policy misunderstood • Changed advertising section of terms agreement back to original version of service Cambridge Analytica (1 of 3) • Robert Mercer’s vision: Use data analytics to help conservative candidates and causes • Mercer formed joint venture with SCL Group and invested $15 million in new firm: Cambridge Analytica • SCL Group hired Aleksandr Kogan to gather data about American voters • Kogan created survey app: “thisisyourdigitallife” – Promoted survey using Amazon’s Mechanical Turk – Users paid $1 or $2 to take personality test – Users had to access app using Facebook Login – Users agreed that app would download information about them and their Facebook friends Cambridge Analytica (2 of 3) • Personal data collected from 270,000 people who took surveys and as many as 87 million people who were on their friends’ lists • Kogan shared profiles with Cambridge Analytica • About 30 million profiles were detailed enough that Cambridge Analytica could combine data with other data they had, creating psychographic profiles – Classified voters over five personality traits: openness, conscientiousness, extroversion, agreeableness, neuroticism – Strategy: target ads based on psychographic profile • Ted Cruz campaign hired Cambridge Analytica to help with microtargeting – Value of advice debatable – Campaign staffers said predictions were bad Cambridge Analytica (3 of 3) • Trump campaign hired Cambridge Analytica in fall 2016 – firm promised to provide names of millions of voters likely to vote for Trump • “Data breach” story broke in spring 2018 – Facebook response ▪ Not a breach – everyone who used Kogan’s app had granted their consent, and privacy settings of their friends allowed their information to be shared ▪ Kogan had perpetrated a fraud by sharing data with Cambridge Analytica ▪ Suspended accounts of Kogan and Cambridge Analytica – Mark Zuckerberg called to Washington, DC, and testified for 10 hours in front of two Congressional Committees • May 2018: Cambridge Analytica filed for bankruptcy Summary • Modern information technology makes it much easier to collect and transmit information • Privacy a balancing act – Desires of individuals – Profit motives of companies – Common good • Public records: information that communities have decided should be known to all • Sometimes must share personal information to get something we want – Disclose income tax statements to get a home loan • Companies collect more information to market more selectively – some have pushed the boundaries of what society will tolerate