{"id":48835,"date":"2019-07-29T14:12:36","date_gmt":"2019-07-29T21:12:36","guid":{"rendered":"http:\/\/world.edu\/?p=48835"},"modified":"2019-07-29T14:12:36","modified_gmt":"2019-07-29T21:12:36","slug":"why-facebooks-new-privacy-cop-is-doomed-to-fail","status":"publish","type":"post","link":"https:\/\/world.edu\/why-facebooks-new-privacy-cop-is-doomed-to-fail\/","title":{"rendered":"Why Facebook\u2019s new \u2018privacy cop\u2019 is doomed to fail"},"content":{"rendered":"

\"\"<\/p>\n

The\u00a0Federal Trade Commission issued its largest-ever fine<\/a>, of US$5 billion, to Facebook for violating a\u00a02011 privacy settlement<\/a>\u00a0in late July. But the amount is only\u00a0about a month\u2019s worth of the company\u2019s revenue<\/a>, suggesting that the fine, while seeming large, is, in fact, rather modest.<\/p>\n

More significantly, Facebook is required to have an \u201coutside assessor<\/a>\u201d \u2013 a sort of privacy cop \u2013 to monitor the company\u2019s handling of user data, along with following a few other corporate procedural requirements. That assessor could address the fundamental problems with the way Facebook operates \u2013 but as a\u00a0scholar of technology companies\u2019 business practices<\/a>, I\u2019m worried that this potentially all-important role is set up for failure.<\/p>\n

In my opinion, in order to be effective, there are three main privacy-related concerns the FTC\u2019s newly designated cop would need to look out for: the potential for genuine violations of users\u2019 privacy; the targeted spread of harmful content, especially resulting in election manipulation and ethnic violence; and instances of collecting and harvesting far more data than is warranted to provide services to users.<\/p>\n

An independent assessor will lack the standards, regulatory and legal guidelines, and the insight needed to actually monitor how Facebook handles those three issues. This makes the privacy cop\u2019s job much harder than that of a regular cop or, say, a financial auditor.<\/p>\n

Protecting users\u2019 privacy<\/h4>\n

Facebook\u2019s history of privacy violations extends well beyond the most publicized ones, like letting\u00a0Cambridge Analytica<\/a>\u00a0access the\u00a0personal data of 50 million users<\/a>\u00a0to craft\u00a0micro-targeted political ad campaigns<\/a>.<\/p>\n

Facebook has\u00a0secretly shared data with other companies<\/a>\u00a0for years, without notifying the users. That practice, as well as the function that lets users sign in to other websites and apps\u00a0with their Facebook login<\/a>, has helped advertisers\u00a0follow their targets around the internet<\/a>. The company has also used its trove of user data to gain a\u00a0competitive advantage in business negotiations<\/a>, boosting its own profits without compensating the users themselves.<\/p>\n

The FTC ruling gives the privacy cop no clear guidance on which data-sharing or data-withholding arrangements between Facebook and other companies are legitimate and where they cross a line. This is because there are still\u00a0no internationally agreed-upon data protection rules<\/a>, and\u00a0few clear regulations<\/a>\u00a0in the U.S. to compare Facebook\u2019s actions against.<\/p>\n

Facebook\u2019s business model uses its treasure trove of user data to target advertising, the source of\u00a0almost all the company\u2019s revenue<\/a>. An outsider will be unable to tell the difference between legitimate business practices that harvest user data to increase profits and problematic abuses that violate users\u2019 privacy. In fact, FTC Commissioner Rohit Chopra, who\u00a0dissented from the decision<\/a>, declared that the new settlement still \u201callows Facebook to decide for itself<\/a>how much information it can harvest from its users and what it can do with that information.\u201d<\/p>\n

Blocking harmful content<\/h4>\n

Facebook has\u00a0struggled to limit harmful content<\/a>\u00a0on its networks, such as that which fed\u00a0ethnic violence<\/a>,\u00a0distributed misinformation<\/a>\u00a0or facilitated\u00a0election interference<\/a>. Personal data helped the perpetrators target their messages to certain groups of Facebook users.<\/p>\n

The outside assessor will be\u00a0focused on privacy<\/a>, which means that identifying, verifying and policing content will be beyond the assessor\u2019s mandate. Ironically, steps to enhance privacy, such as ensuring end-to-end encryption across all of Facebook\u2019s messaging platforms \u2013 as Mark Zuckerberg\u00a0intends to do<\/a>\u00a0\u2013 would help in protecting the identity of the spreaders of harmful messages, rather than exposing them and their actions.<\/p>\n

Protecting users from giving up too much<\/h4>\n

Access to Facebook seems free, because it costs no money, but users\u00a0pay with their data<\/a>. The assessor should ask if the users are being charged fairly, in privacy terms, for the service they\u2019re receiving. That raises the question of what a \u201cfair\u201d price is for what Facebook provides.<\/p>\n

Normally, price is set by a competitive market, where\u00a0customers can choose<\/a>\u00a0from a range of service providers. Not so on Facebook, where there are high costs \u2013 again, not financial, but in terms of time and effort \u2013 to leaving, and no other option offering equivalent services.<\/p>\n

A social science phenomenon called the \u201cnetwork effect<\/a>\u201d means that any network is increasingly valuable as more people join it \u2013 but that means it\u2019s also increasingly hard to leave. There are now\u00a0more than 2.3 billion Facebook users<\/a>\u00a0around the world. For too many people, their most\u00a0active online social connections<\/a>\u00a0are on Facebook.<\/p>\n

It\u2019s hard to leave Facebook, not only because there are so many users. Many customers use their Facebook logins on thousands of other apps and services. If they delete their Facebook accounts, they lose all access to those other apps too, like customized Spotify playlists and Netflix viewing preferences. Worse still, Facebook has bought up many of its competitors. Lots of people who quit Facebook\u00a0shift over to Instagram<\/a>\u00a0\u2013 which is owned by Facebook.<\/p>\n

Looking to the future, the company is making the price of leaving Facebook even higher, by planning to\u00a0consolidate its data-collection power<\/a>\u00a0by integrating its various apps, including Facebook Messenger, Instagram and WhatsApp \u2013 as well as through a\u00a0proposed digital currency<\/a>\u00a0for transactions conducted on Facebook platforms. All of these create a playing field that is tilted in favor of an all-encompassing single parent company, limiting users\u2019 choices and making switching difficult. No assessor can remedy the inherent unfairness of that imbalance.<\/p>\n

Far more than the fine, the centerpiece of the FTC deal is the outside assessor. If properly designed, this role could be truly game-changing \u2013 one of a forceful privacy cop setting the standards for how the power of big technology firms is managed from here on. But the fine is a slap on the wrist, and the cop\u2019s arms are tied and don\u2019t reach far enough. This sets a very bad precedent: Both the FTC and Facebook can declare a victory of sorts, while the consumer loses.<\/p>\n

Author Bio:<\/strong> Bhaskar Chakravorti is Dean of Global Business, The Fletcher School at Tufts University<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

The\u00a0Federal Trade Commission issued its largest-ever fine, of US$5 billion, to Facebook for violating a\u00a02011 privacy settlement\u00a0in late July. But the amount is only\u00a0about a month\u2019s worth of the company\u2019s revenue, suggesting that the fine, while seeming large, is, in fact, rather modest. More significantly, Facebook is required to have an \u201coutside assessor\u201d \u2013 a […]\n… learn more→<\/a><\/p>","protected":false},"author":33,"featured_media":48836,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[85],"tags":[1175],"coauthors":[11733],"class_list":["post-48835","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-social-change","tag-privacy"],"acf":[],"yoast_head":"\nWhy Facebook\u2019s new \u2018privacy cop\u2019 is doomed to fail - World leading higher education information and services<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/world.edu\/why-facebooks-new-privacy-cop-is-doomed-to-fail\/\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:locale\" content=\"en_US\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:type\" content=\"article\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:title\" content=\"Why Facebook\u2019s new \u2018privacy cop\u2019 is doomed to fail - World leading higher education information and services\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:description\" content=\"The\u00a0Federal Trade Commission issued its largest-ever fine, of US$5 billion, to Facebook for violating a\u00a02011 privacy settlement\u00a0in late July. But the amount is only\u00a0about a month\u2019s worth of the company\u2019s revenue, suggesting that the fine, while seeming large, is, in fact, rather modest. 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