With the increasing digitization of everything from social interaction to shopping to maps and our real-time locations, there are growing calls to regulate technology companies and pass privacy laws mandating how data can be collected. But private data collection during our use of products and everyday services can be done in a way that doesn’t violate consumers’ rights. A willing exchange of goods and services is one of the core forces driving free markets, including today’s technology and demand for personal data.
Before the internet and cellphones existed, consumers willingly exchanged access to their information for services and financial benefits. Shoppers have voluntarily signed up for retail outlet loyalty programs and grocery discount clubs that track purchasing decisions. Consumers don’t have to give up that information but choose to in exchange for lower prices and other benefits. Retailers used the data to learn how to serve and keep customers.
This long-standing practice carried into the digital world with great success. America has become the undisputed home of technological innovation, with firms like Amazon, Apple, Google, Facebook and Netflix all using consumer data to offer better products at lower prices. Apple uses data to improve its devices and services. Netflix uses data on what you watch to improve its recommendations. In countless ways, data has helped technology deliver instant access to millions of websites, products and services via our phones — now powerful pocket computers.
