Sunday, October 26, 2014

Has Data Protection gone a step too far in Europe?


Data protection is very much part and parcel of the human rights driven approach that the EU has taken for personal data. Leaving aside the rather broad exceptions that are present for the state when it comes to gathering information on people when it comes to revenue and taxes (under section 8 of the Data Directive 1995) this is broadly a positive step. However as the saying goes, too much of a good intention can lead inter alia to a poor outcome. In this case, the use of data to better serve customer needs being waylaid.



This has in part been prompted by the reading of the book, What Stays in Vegas: The World of Personal Data by Adam Tanner. Here there are numerous negative examples of how Big Data and how the prevalence of digitization has lead to personal data being used for morally questionable outcomes. For instance the use of criminal mugshots in websites for the titillation of the general populace would likely give a typical Data Protection commissioner fits. This is very much in keeping with the commercial driven agenda where the worth of the data is key to understanding how the US crafts their rather minimalist data protection laws.

On the other hand, where commercial interests are present so too are the technological innovation that goes hand in hand with such. Key to this was the paper, written in part by CEO of a Vegas Corp. Gary Loveman, "Putting the Service-Profit Chain to Work" which traces the importance of the regular customer. Whilst he/she in an average transaction might not spend much, a satisfied customer in their lifetime would be the sum total of their entire spending and as such would be equivalent to the occasional bigger spender. This insight lead to more emphasis on data gathering on these heretofore unremarked segments of the market place and the use of Big data to better craft personalised products to keep them as regular spenders. As Tanner in his book mentions in the context of gathering this data, there is a market imperative to keep much of this open and voluntary as even the suggestion of "creepiness" would lose the client and perhaps draw the ire of the legislators. As well in parallel, this drives the technological innovation of Big data.


Thus while not saying their should be a whole scale rollback of the EU data protection, given that the current directive is being overhauled to make it fit for the Cloud/Big Data purpose, it would be relevant to note that the societal good can as well be serviced by for-profit motivations.

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