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HBR – Uninformed Consent

Harvard Business Review – Companies want access to more and more of your personal data — from where you are to what’s in your DNA. Can they unlock its value without triggering a privacy backlash?

Leslie K. John – Marvin Bower associate professor of business administration at Harvard Business School: “…Technology has advanced far beyond the browser cookies and retargeting that allow ads to follow us around the internet. Smartphones now track our physical location and proximity to other people — and, as researchers recently discovered, can even do so when we turn off location services. We can disable the tracking on our web browsers, but our digital fingerprints can still be connected across devices, enabling our identities to be sleuthed out. Home assistants like Alexa listen to our conversations and, when activated, record what we’re saying. A growing range of everyday things — from Barbie dolls to medical devices — connect to the internet and transmit information about our movements, our behavior, our preferences, and even our health. A dominant web business model today is to amass as much data on individuals as possible and then use it or sell it — to target or persuade, reward or penalize. The internet has become a surveillance economy. What’s more, the rise of data science has made the information collected much more powerful, allowing companies to build remarkably detailed profiles of individuals. Machine learning and artificial intelligence can make eerily accurate predictions about people using seemingly random data. Companies can use data analysis to deduce someone’s political affiliation or sexuality or even who has had a one-night stand. As new technologies such as facial recognition software and home DNA testing are added to the tool kit, the surveillance done by businesses may soon surpass that of the 20th century’s most invasive security states.

The obvious question is, How could consumers let this happen? As a behavioral scientist, I study how people sometimes act against their own interests. One issue is that “informed consent” — the principle companies use as permission to operate in this economy — is something of a charade. Most consumers are either unaware of the personal information they share online or, quite understandably, unable to determine the cost of sharing it — if not both…”

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