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Social Distortion:Privacy, Consent, and Social NetworksH. Brian HollandVisiting Associate Professor of LawDickinson School of Law at Penn State University
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Not talking about covert surveillance
Not talking about the government
but rather
Voluntary disclosure of personal information
to private institutions
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1. The current market for personal informationThe privacy paradoxDistortions in the market
2. Social network sites: Market distortions on steroids
Changes to the information-exchange agreement
Social phenomena driving disclosure
3. Why most proposed legal solutions will not work
4. What will work
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The Paradox of the Privacy “Market”
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We say one thing.I want my privacy.
We do something else.Here’s my data. Take what you want.
(just give me my stuff)
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Examples
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The claim
43% of online users claim that they are likely to read the privacy policy
of an ecommerce sitebefore buying anything
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The reality
26% actually consulted the privacy policy
Even more odd,essentially no difference between
privacy fundamentalists, pragmatists, or the unconcerned
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The claim
71% want to control who can access their personal information
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The reality
~ 75% have supplied
first namelast name
emailstreet address
~ 50% have supplied
phone numberbirthday
credit card information
(to e-commerce sites)
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Why the paradoxbetween professed attitude
and actual behavior?
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Blame it on the market
and the law of the market
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Starting point
The current market for
transferring personal information
(1) revelation (mere disclosure)
(2) consent – express or implied
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Any regulation?
some targeted limits on:
extremely invasive collection and use(privacy torts)
certain kinds of data(e.g. health records)
certain subjects of data(e.g. kids)
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But most data can be collected or given away very cheaply.
So, why do we consent so easily?
3 points
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Lack of legal control over data
No property rights in personal data
Lack of bargaining power
Inability to control downstream rights
1
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The decline of consent contracting
Contracts as standardized commodities
Contracts as part of the product
2
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Market distortions(behavioral economics)
Incomplete or asymmetric information
Bounded rationality
Systemic psychological deviations from rationality
3
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Creates artificially low prices
for personal information
consent is cheap
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Personal information as a commodity.
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Social Network Sites
Market distortions
on steroids.
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A social-tools model of production
An effective tool of coordination
A plausible promise(the basic “why” to join or contribute)
An acceptable bargain with users
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But is it a bad bargain for users?
Capturing users’ personal information
Privacy 1.0 – Centralized data collection, storage and aggregation
Privacy 2.0 – Peers as both sensors and producers
Owning user’s personal information(storage, use, transfer)
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Why consent to a bad bargain?
What do users get?
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New and powerful market distortions
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Two integrated points
Social network sites are …
(1) Altering the basic structure of the information exchange agreement
(2) Benefiting from certain social phenomena that are driving us to join the network and
to disclose a lot of personal information
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The structure of the
information-exchange agreement
consent recedes into the background
First point
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The classic e-commerce model
Money
Personal information associated with delivery of current goods or services and the provision of future goods or services
Merchandise
Services
Database
??
??
??
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The g-mail model
Initial negotiation and transaction
(looks like the ecommerce model)
A little bit of personal
information
In exchange for services
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The g-mail model
Lots of personal information
Subsequent negotiations and transactions for the exchange of personal information
between contacts
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The g-mail model
Lots of personal information
Lots o
f perso
nal in
form
atio
n
Not holding?Not passing on?
Ads
Gmail recedes into the background, almost as a third-
party beneficiary of these subsequent transactions (info exchange) between contacts
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The Social Network Site model
A little bit of personal
information
In exchange for services
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The Social Network Site model
Lots of personal
information
Lots o
f perso
nal in
form
atio
n
A little bit of personal
information
In exchange for services
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The Social Network Site model
A little bit of personal
information
In exchange for services
Lots of personal
information
Lots o
f perso
nal in
form
atio
n
Lots and lots and lots and lots of personal information
In exchange for ???
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The Social Network Site model
A little bit of personal
information
In exchange for services
Lots of personal
information
Lots o
f perso
nal in
form
atio
n
Lots and lots and lots and lots of personal information
In exchange for ???
Database
??
??
??
Ads
Ads
Ads
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Certain social phenomena
Driving us to join the network
and
Driving us to disclose a lot of personal information
Second point
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Social phenomena
(a) The evolution of social organizationtoward social networks and networked individualism
(b) Online identity performanceassertions of digital identity
processes of identity formation
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Glocalized Relationships
NetworkedIndividualismBounded
Groups
(a) The evolution of social organization(from little boxes to social networks)
neighborhoods householdsworkplaces
??
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Networked individualismRelationship unhinged from location
Person-to-person connectivity(replacing place-to-place)
Facilitating larger, more fragmented networks
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Using technology to manage intimacy
in larger, more fragmented social networks
The email example
Asynchronous
Flexible
Control
Contact with multiple people
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Social network sites
Flexible, asynchronous communication
+
Leveraging our need to build and maintain relationships
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Need for community
Need to remain connected
Need to retain and createcommon experience
Need to engagepeer opinion and build reputation
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Personal informationis at the heart of relationship
This is how we
create intimacy
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Not basic identifiers or contact information
Truly personal information
Expressions of Self
Preferences
Graphic representations
Affiliations
Acts and activities
Sexuality
Identity
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(b) Online identity performance
Assertions of digital identity(all users)
Process of identity formation
(younger users)
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Assertions of digital identity
(all users)
Traditional identity cluesare not available
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So we
compensate
Other clues
More information
More communication time
Using networks to triangulate and authenticate(to overcome ease of manipulation)
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Process of identity formation
(younger users)
Using digital space to …
Work out identity and status
Make sense of cultural clues and societal norms
Negotiate public life
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Part of this is
taking risks
Putting yourself out there
Pushing boundaries
Gauging reactions
What is acceptable and what is not?
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Just as with intimate relationships
Personal information
is at the heart of
identity performance
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Acts of articulation
Text
Images
Audio
Video
Developing a virtual presence or identity.
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and social networks get it all
A little bit of personal
information
In exchange for services
Lots of personal
information
Lots o
f perso
nal in
form
atio
n
Lots and lots and lots and lots of personal information
In exchange for ???
Database
??
??
??
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Terms of Service and Privacy Policies
* highlights *
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And users consent to all of this …
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So, what’s my point?
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It’s not just immature and irresponsible kids
Just say “no”
Would you want your grandmother
to read it!
Would you post it in Times Square?
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There are real, concrete reasons for posting so much personal information.
They won’t simply “grow out of it”
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Proposed legal solutions?
1. Targeting market distortionsincreased salience
propertization
2. Altering the terms of consentcontract reform / limitations on consent
opt-in vs. opt-out
3. Expanding rights and regulationconsumer fraud regulations
tort liability
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Why they won’t work
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Proposed legal solutions?
1. Targeting market distortionsincreased salience
propertization
2. Altering the terms of consentcontract reform / limitations on consent
opt-in vs. opt-out
3. Expanding rights and regulationconsumer fraud regulations
tort liability
Ineffective at altering the decision to provide consent
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Proposed legal solutions?
1. Targeting market distortionsincreased salience
propertization
2. Altering the terms of consentcontract reform / limitations on consent
opt-in vs. opt-out
3. Expanding rights and regulationconsumer fraud regulations
tort liability
Focus on the wrong problem: misuse rather than consent
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“If a person consents to most of these activities,
there is no privacy violation.”
Daniel J. SoloveA Taxonomy of Privacy
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Proposed legal solutions?
1. Targeting market distortionsincreased salience
propertization
2. Altering the terms of consentcontract reform / limitations on consent
opt-in vs. opt-out
3. Expanding rights and regulationconsumer fraud regulations
tort liability
Interference with autonomy &Negative impact on
functionality
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What will work?
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Goal
Regulate privacy
and
Preserve the benefits of new social spaces(functionality)
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Is it really a problem?
How much of a problem is it?
What do users really want?
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Focus
Emerging social norms of
“network” privacy
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Regulating data-flow between networks
Architecture/DesignUser-controlled partitions
TechnologyTagging data
Contextual data
LawRestrictions on downstream use and transfer
Restrictions on network-crossing
Data portability
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Regulating data-use within networks
The market is more likely to workThe “Beacon” example
Strengthened by portability
Social norms will develop
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Thank you.