FTC Staff: Ability to Collect Online Data Directly Tied to Consumer Trust

A key takeaway from the FTC’s 2017 information injury workshop was that privacy incidents erode consumer trust, driving down the ability for platforms to collect consumer data, agency staff said Friday. Participants noted the risk of informational injury should be balanced with the value of data collected, staff wrote. Participants cited a handful of studies showing consumers say they care deeply about privacy, but their behavior doesn’t always support that claim. Examples included people offering friends’ personal information for slices of pizza. Other examples include people allowing their photos to be taken, offering the last four digits of their Social Security number and offering their fingerprints in exchange for cookies. Staff said consumer harm from privacy and security breaches include: medical identity theft, targeted release of personal data and erosion of trust.