A Democrat and a Republican on Monday registered a U.S. Senate bill to require companies to report to financial regulators and to the public what customer data they collect and the way they leverage it for gain.
“All these’free’ products monitor everything we do so technology businesses can sell our information to the highest bidder and use it to target us with creepy advertisements. Worse, tech companies do their best to conceal just how much consumer information is worth and to whom it is marketed,” Hawley said. “This bipartisan legislation gives users control of the information and will show them just how much these’free’ services really cost.”
Consumers are paying for products that were free with their information rather than with their pockets, Warner noted.
“The total lack of disclosure and transparency in this marketplace have made it impossible for consumers to understand what they’re giving up, who their information has been shared with, or what it is worth to the stage,” he said.
“Our bipartisan bill will allow consumers to comprehend the real value of the data they’re providing to the platforms,” Warner continued,”that will encourage competition and permit antitrust enforcers to identify potentially anticompetitive practices.”
Warner has vowed to introduce a bill in a couple of weeks to require businesses to produce data so that it can be transferred from one platform to another, based on Axios, which first reported news of the Dashboard Act 48, collected from users mobile.
“It would let you easily transfer your data from a player like Facebook into a new competitor,” he told TechNewsWorld.
How — the firms that are simple — or frictionless will make data to transfer will be a issue should the bill become law.
“I doubt it is likely to be made real simple to do,” Caldwell said.
If there are competitions to take the information 23, what is more, portability may have an effect on the landscape.
“Data portability is all good and well and might foster competition, but it does not work if there are no effective competitors from the marketplace since they keep getting bought by the bigger businesses,” Albert told TechNewsWorld.
Info about companies collect data would provide customers with benefit than just how much money they make it off, Albert noted. “Knowing what your information is worth does not get you much when there’s effectively no competition at particular services.”
“While information may have worth,’paying’ for a ceremony with information isn’t the same as paying with cash,” he explained.
“Unlike cash, consumers don’t have less information after sharing private information, and they can share that very same data with other services also,” Castro pointed out. “On the contrary, for many commercial providers, customers always come out ahead by sharing information in exchange for a free service.”
The legislation would make companies go of attempting to assign a value to each user, an action that would irritate consumers through a costly process when required by the government.
“In no other industry does the government require companies to show which customers are most valuable to them,” Castro said. “Further, if Congress wants to require this disclosure, it must extend it to companies of all sizes, in addition to political campaigns.”
Provisions in the law that guide the SEC to develop a methodology for calculating data value, its resources for information collection, and how the company safeguards the information”are reasonable and must be the foundation for any invoice that goes forward,” he added.
The Value Hangup
As things stand today, the tech businesses understand the value of the information they are collecting and that value isn’t known by consumers, said Rob Enderle, principal analyst at the Enderle Group.
“Typically, when one side understands the worth of something and the other side does not, then the side that does not understand the value of the thing gets cheated,” he told TechNewsWorld.
The issue with this bill is that the businesses will do the valuations, and”there is nothing to prevent the business from undervaluing the advantage,” Enderle said. “This bill requires a stronger process for setting the value of data so that it doesn’t excessively benefit the vendor.”
However, the bill becoming law’s probability are low, ” he predicted. “Congress does not know enough about these issues, and when people do not understand enough about something, they are very likely to hold to the status quo.”