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What if People Were Paid For Their Data? (economist.com)

Advocates of "data as labour" think users should be paid for using online services. An anonymous reader shares a report: Labour, like data, is a resource that is hard to pin down. Workers were not properly compensated for labour for most of human history. Even once people were free to sell their labour, it took decades for wages to reach liveable levels on average. History won't repeat itself, but chances are that it will rhyme, Glen Weyl, an economist at Yale University, predicts in "Radical Markets," a provocative new book he has co-written with Eric Posner of the University of Chicago. He argues that in the age of artificial intelligence, it makes sense to treat data as a form of labour. To understand why, it helps to keep in mind that "artificial intelligence" is something of a misnomer. Messrs Weyl and Posner call it "collective intelligence": most AI algorithms need to be trained using reams of human-generated examples, in a process called machine learning. Unless they know what the right answers (provided by humans) are meant to be, algorithms cannot translate languages, understand speech or recognise objects in images. Data provided by humans can thus be seen as a form of labour which powers AI.

As the data economy grows up, such data work will take many forms. Much of it will be passive, as people engage in all kinds of activities -- liking social-media posts, listening to music, recommending restaurants -- that generate the data needed to power new services. But some people's data work will be more active, as they make decisions (such as labelling images or steering a car through a busy city) that can be used as the basis for training AI systems. Yet whether such data are generated actively or passively, few people will have the time or inclination to keep track of all the information they generate, or estimate its value. Even those who do will lack the bargaining power to get a good deal from AI firms. But the history of labour offers a hint about how things could evolve: because historically, if wages rose to acceptable levels, it was mostly due to unions. Similarly, Mr Weyl expects to see the rise of what he calls "data-labour unions," organisations that serve as gatekeepers of people's data. Like their predecessors, they will negotiate rates, monitor members' data work and ensure the quality of their digital output, for instance by keeping reputation scores. Unions could funnel specialist data work to their members and even organise strikes, for instance by blocking access to exert influence on a company employing its members' data. Similarly, data unions could be conduits channelling members' data contributions, all while tracking them and billing AI firms that benefit from them.

101 comments

  1. people would just pay the full cost of services by known_coward_69 · · Score: 4, Insightful

    If no one can sell any of your data then companies will just raise their prices to cover the full costs of their products and services. Like no more free Strava on the iphone or apple watch. If you want a run/biking tracker you'll have to pay per device. Just like the old days.

    1. Re:people would just pay the full cost of services by E-Rock · · Score: 3, Informative

      The genie is out of the bottle, and this is just another revenue stream. Much like 'pay TV' that is still full of ads, data monetization is probably here to stay.

    2. Re:people would just pay the full cost of services by ctilsie242 · · Score: 2, Insightful

      That wouldn't change anything. Stuff is priced as what it will sell at, so having all your data sold would be considered part of the price to use a device... or hidden under a EULA.

      Tired of subscriptions and data being sucked off? Stop buying stuff that does that.

    3. Re:people would just pay the full cost of services by oh_my_080980980 · · Score: 1

      Which is how it's suppose to be. Pure fairy tales if you think companies are not profiting off of your data. It more than covers the cost of using the apps.

    4. Re:people would just pay the full cost of services by Kjella · · Score: 2

      The genie is out of the bottle, and this is just another revenue stream. Much like 'pay TV' that is still full of ads, data monetization is probably here to stay.

      Yes. The only thing I wonder is if people can and will put a value on the price they're paying for their "free" services. Like if you could have the same service without the tracking and mining, is that worth something to you. So far I'm thinking "no" at least when it comes to paying, the jury is still out on whether they'd take a slightly less convenient open source alternative but I'm starting to trend towards "no" there as well. Occasionally people pretend-rage when it becomes too obvious but they like their free service too much to actually do anything about it.

      --
      Live today, because you never know what tomorrow brings
    5. Re:people would just pay the full cost of services by jumbomojo · · Score: 4, Insightful

      First, I don't think the only or necessary consequence of people owning their data is that no one else can use it or make something of value out of it.

      Think of it as a raw material that individuals own as they can mineral rights. I can imagine circumstances in which individuals may want to sell (or lease) their data to companies that might sort, aggregate, analyze, qualify or otherwise manipulate it to create some salable information. Just because companies get it "for nothing" now, doesn't mean it has to be that way for companies to make a profit.

      Second, if companies want to charge for products or services that are now "free", fine. Let them. Then consumers can decide what such goods and services are really worth to them. They might discover that a lot of them are only worth the price when the price is zero.

    6. Re:people would just pay the full cost of services by war4peace · · Score: 1

      Anecdotal coincidence: I literally just heard of Strava today from an unrelated source and installed it a couple hours ago.

      --
      ...gis sdrawkcab (usually not responding to ACs; don't bother posting as AC)
    7. Re:people would just pay the full cost of services by war4peace · · Score: 0

      The problem, though, is there is almost no other type of stuff out there.
      The stuff that is free without sucking your data off and has no ads usually sucks donkey balls.

      --
      ...gis sdrawkcab (usually not responding to ACs; don't bother posting as AC)
    8. Re:people would just pay the full cost of services by Known+Nutter · · Score: 1

      Then re-evaluate your "need" for the stuff.

      --
      Beware of the Leopard.
    9. Re:people would just pay the full cost of services by parkinglot777 · · Score: 1

      If no one can sell any of your data then companies will just raise their prices to cover the full costs of their products and services. Like no more free Strava on the iphone or apple watch. If you want a run/biking tracker you'll have to pay per device. Just like the old days.

      Hmm... I think you jump into conclusion. If they don't sell/buy data, those companies can still collect data but would be limited to their own product use. Because you use iPhone as an example, it will not change anything. Apple has been collecting and using the data for years. Do you still think that they need to buy more data to develop their watch? The only difference I could think of is that it could be less free apps you can use. However, that doesn't mean we can't live without. They all are for convenience, not a must or need.

      Free Strava? Hmm... I am wondered how many percentages of those who can access it would actually use it. Without it, would that change the world? I highly doubt it.

    10. Re:people would just pay the full cost of services by war4peace · · Score: 1

      Like "go off the grid and live like a hermit"?

      --
      ...gis sdrawkcab (usually not responding to ACs; don't bother posting as AC)
    11. Re:people would just pay the full cost of services by Known+Nutter · · Score: 3, Insightful

      If you don't see a meaningful gap between "go off the grid" and "Free Apps! Apppsss! I need all the Apps!" then might I suggest that your re-evaluation was ineffective.

      --
      Beware of the Leopard.
    12. Re:people would just pay the full cost of services by war4peace · · Score: 1

      What I'm saying is most apps out there use Facebook's or Google's infrastructure for account management. They don't have their own account management infrastructure, so you're screwed anyway.
      No Facebook account? Sorry, you can't save your progress in this game. Sorry, you can't aggregate your data in this app. Sorry, you can't use that app at all.
      What remains after you've eliminated is generally useless.

      Also, try using a smartphone without being logged in to either Apple's or Google's account.
      Yeah, I know, "don't use a smartphone". Be a hermit in a connected world.

      --
      ...gis sdrawkcab (usually not responding to ACs; don't bother posting as AC)
    13. Re:people would just pay the full cost of services by known_coward_69 · · Score: 2

      you can still buy a bike computer that's a dumb device with no GPS or any kind of data retention. the same thing with a lot of other products

    14. Re:people would just pay the full cost of services by Anonymous Coward · · Score: 1

      In these discussions people always forget about the existence of free software.
      I don't pay for apps with money, and I don't for them with data either.

    15. Re:people would just pay the full cost of services by Rick+Schumann · · Score: 1

      I'm perfectly okay with that -- so long as there are stiff penalties for violating my privacy when I say 'no' to them collecting my data for any reason. In fact I'd prefer that they charge for things like Zuckerbook and Twitter. It would keep many people off them that have nothing useful to say anyway (or so I hope).

    16. Re:people would just pay the full cost of services by Sumus+Semper+Una · · Score: 1

      Be careful what you ask for. If everyone needed to be paid for their data, what would happen to user product reviews like those found on Amazon? Will companies really want to continue a feature that benefits users if they have to pay the users to include it?

      Your data and metadata are practically worthless on their own. It only becomes worth anything when it is put together with equivalent data from a large portion of other people, analyzed to gleam some sort of truth (accurately, which is not easy), and acted upon. And even then, the profit is not worth enough to bother actually paying any significant amount for. At best, you could put a "potential estimated value" around your data, but who would actually pay for it?

      Don't get me wrong, I understand people's privacy concerns and desire to not have their actions used in ways they disagree with that they never anticipated. But thinking anyone will ever actually pay you for this data is the pipe dream of someone who doesn't understand the economics of the situation.

    17. Re:people would just pay the full cost of services by AlanBDee · · Score: 3, Insightful

      What I'm saying is most apps out there use Facebook's or Google's infrastructure for account management. They don't have their own account management infrastructure, so you're screwed anyway.
      No Facebook account? Sorry, you can't save your progress in this game. Sorry, you can't aggregate your data in this app. Sorry, you can't use that app at all.

      I have yet to play a game the only allowed a facebook account. If I came across then I wouldn't play that game. But this might be due to the fact that I don't play any free games unless they're open source.

      What remains after you've eliminated is generally useless.

      I seem to have no problem finding games to spend money on. You're looking in the wrong places. I suggest GOG.com or Humble Bundle. The key is to look for the games that cost money up front.

      Also, try using a smartphone without being logged in to either Apple's or Google's account.

      I've done it. You have to side load any apps but it's nearly as horrible as you might think. It does take a bit of tinkering and some technical know how that is above the average user. Still, you could also just create an empty google account and only tie you phone to it. Yes, you technically have a Google account but there's nothing of real value in it.

    18. Re:people would just pay the full cost of services by AlanBDee · · Score: 1

      it's nearly as horrible as you might think

      Correction: it's not nearly as horrible as you might think.

    19. Re:people would just pay the full cost of services by Anonymous Coward · · Score: 0

      GPS data. browsing habits, hell where you tap on your phone screen even; all of this data is being monetized and sold. Empty account when you start yes, but the data mining has to (re)start somewhere.

    20. Re:people would just pay the full cost of services by Anonymous Coward · · Score: 0

      I'll put it this way: If Microsoft were to offer me a fair wage, let's say the minimum wage of $10.50/hour, with a minimum of 1 hour (meaning if they collect data from me for five minutes within an hour, they have to pay for the full hour), then I would reconsider using Windows 10 if they got rid of the mandatory updates and reboots.

      I don't want my data being used to make money for any company without being paid for that data and the use of my computer resources, internet connection and electricity. If they are unwilling to pay me, then those companies can go hire proper QA teams like they should be doing.

    21. Re:people would just pay the full cost of services by war4peace · · Score: 1

      I have yet to play a game the only allowed a facebook account. If I came across then I wouldn't play that game. But this might be due to the fact that I don't play any free games unless they're open source.

      So... you don't play those games because you don't want to play those games. Great logic, but that doesn't mean they go away. Also, I was talking about mobile games and apps, rather than PC ones.

      I seem to have no problem finding games to spend money on. You're looking in the wrong places. I suggest GOG.com or Humble Bundle. The key is to look for the games that cost money up front.

      I have spent thousands of EUR on PC games, I wasn't talking about those. I was talking about mobile games, where the situation is grim.

      I've done it. You have to side load any apps but it's nearly as horrible as you might think. It does take a bit of tinkering and some technical know how that is above the average user. Still, you could also just create an empty google account and only tie you phone to it. Yes, you technically have a Google account but there's nothing of real value in it.

      Which brings us back to the original discussion. Every Google account is empty... at the beginning. Then you add contacts. Then you use Whatsapp. Then you move around and your location is recorded. Maybe you watch a few videos. Maybe you start using e-mail of some sort. Soon enough, that empty Google account isn't empty anymore.

      --
      ...gis sdrawkcab (usually not responding to ACs; don't bother posting as AC)
    22. Re:people would just pay the full cost of services by war4peace · · Score: 1

      And do nothing useful on it.

      --
      ...gis sdrawkcab (usually not responding to ACs; don't bother posting as AC)
  2. read the EULA facebook is your pipm and freefacebo by Joe_Dragon · · Score: 1

    read the EULA facebook is your pipm and free facebook is your payout.

  3. Re:read the EULA facebook is your pipm and freefac by known_coward_69 · · Score: 2

    before facebook there was classmates that charged money for contact info and messaging. and some other service that sold something like a yearbook but with recent contact info.

    facebook was free and why people chose it

  4. It would be nice by brucekeller · · Score: 4, Insightful

    But it's already in place. Many of these services are free just because of the fact they can sell your data.

    1. Re:It would be nice by Anonymous Coward · · Score: 1

      But it's already in place. Many of these services are free just because of the fact they can sell your data.

      YouTube was already in place long before they started paying people to create content, and well before YouTube started charging a premium to access certain content.

      Point is shit can change. And rather easily.

    2. Re:It would be nice by oh_my_080980980 · · Score: 1

      Ah the moron who buys the "it's free" nothing is free Virginia and you're getting shafted.

    3. Re:It would be nice by Anonymous Coward · · Score: 0

      well, on bing if you search as registered user you can get yourself a $5 gift card each month for them collecting you data

    4. Re:It would be nice by Rick+Schumann · · Score: 1

      But it's opt-in (or it fully should be). I don't have to use Zuckerbook and I don't and won't. I also don't use my real name anywhere online except for official business, and if they're being loose with the security of that, then there's definitely going to be penalties for them over that.

    5. Re:It would be nice by Z00L00K · · Score: 1

      But then the buyers of the data never realizes that what they do get is actually tainted data.

      Have you ever considered why most shops today seems to all have the same stuff at the same price but never what you look for? That's the result of "Big Data".

      And how do we know that what someone sells isn't tainted? Most people that are security aware have minimized their exposure on the web to avoid getting monitored. This is tainting the "Big Data". Then you have the interest of the "Big Data" companies as well - filter out what they think is "irrelevant", "immoral" or "statistical noise" and promote the stuff that they have stakes in.

      Just things like searches for cars, then by color. "Mint Green" is 174 million hits, orange is 3.6 billion, blue 5.3 billion, white 10.5 billion. If everyone starts to search for mint green cars then I wouldn't be surprised if we suddenly next year would see that color offered on cars in the market.

      You have to realize that there are two kinds of market players out there - those that takes the lead and those that follows the stream. Those that takes the lead don't just follow what "Big Data" offers or ever do that, they may have their own stash of data that they use.

      For some interesting read regarding the use of statistics you can read the article about Abraham Wald regarding WWII bomber losses and damage. The statistics were built up on the data of planes that did return from their missions with damage, never on the planes that didn't return. There's no real difference between this and "Big Data" - just that today it's not a loss of lives, just a loss of customers to specialized stores.

      --
      If builders built buildings the way programmers wrote programs, then the first woodpecker would destroy civilization.
    6. Re:It would be nice by brucekeller · · Score: 1

      True, but on youtube they are actually doing work or being creative. Nowadays they hardly get paid anyway because of advertisers that are apparently puritans from the 1800s.

    7. Re:It would be nice by Anonymous Coward · · Score: 0

      Wow, $5/month! That's totally worth it!

  5. They are already... by Anonymous Coward · · Score: 0

    its just indirect. The fact that most are / were unaware of it is the problem

  6. Doubling down in the wrong direction by Anonymous Coward · · Score: 1

    Rather than taking it for granted that privacy violations are required to have a viable economy, I'd rather see privacy as the baseline assumption and find new funding/payment models from there. In the short term this would certainly be disruptive for businesses like Facebook, but it's far worse to continue allowing private profits on the social damage of a surveillance economy.

    1. Re:Doubling down in the wrong direction by ctilsie242 · · Score: 2

      The problem is that companies are used to running roughshod over privacy laws. Even the GDPR has not been tested. Since they are used to a privacy gravy train, it will take not just laws, but enforcement (fines, raids, C-levels facing prison time) for companies to actually take privacy seriously.

      Even with the GDPR, as it stands now, if a CEO finds out that their firm is in trouble, they short their stock, let the EU find the company into the ground, and laugh all the way to the bank.

  7. Inequality continues by Tablizer · · Score: 0

    The poor will get snooped on while the rich don't.

  8. Pay my rent. by Anonymous Coward · · Score: 0

    If I could get a free house in exchange for my data I would consider it. I'd also accept free self driving taxis for doing analytics on my rides.

  9. xkcd by XXongo · · Score: 1
    Didn't xkcd just do one on that exact subject? Was this post stimulated by that comic?

    I'm too lazy to scroll through back xkcd to find it, though.

    1. Re:xkcd by xxxJonBoyxxx · · Score: 1

      You are probably thinking of:
      https://m.xkcd.com/1971/

      That wasn't about "data unions" but it was about people not taking the initiative to learn what "personal data" was and what people could do with it. It's one of the weaker comics I've seen (too wordy, too preachy) from that corner, but every set needs some filler.

    2. Re:xkcd by moldar · · Score: 1

      This one perhaps: https://m.xkcd.com/2006/

    3. Re:xkcd by XXongo · · Score: 1

      ^^^ Yes, that was the one I was thinking of. Thanks.

  10. Re: people would just pay the full cost of service by Anonymous Coward · · Score: 5, Insightful

    I fail to see the problem.

    This just let's us get back to actually owning the products we paid for one way or the other.

    Bonus points if it gets us back to "still works offline."

  11. Disintermediation much? by Anonymous Coward · · Score: 0

    One of the reasons that labor unions were so successful was that is that it was less labor for a small number of individuals to organize and manage the union than for an individual to do so.

    Yes, there is also the fact that the labor union would 'speak' as a single voice to the company, representing a large number of individual voices. US unions also shot themselves in the foot (blew it off at the knee, really) in the 70's and 80's, by being overly demanding with regards to work-rules, wages, etc. that turned society against them. Management didn't help their cause either (e.g. pension raiding).

    The advent of software, systems, and social contracts have worked (very hard) to disintermediate the middle-man (a.k.a. union organizer) in these situations. With the rise of the likes of Uber, Google, Facebook, Adobe Analytics, etc. it is much harder for folks to organize as a collective voice to counter the other side of the table.

    Back of napkin WAG (wild arse guess), you would have to have >99% of said users to be a party to such an organization to properly stranglehold the data. Think about it - ~200M adults in the US. 90% is still 20M data points! There is still enough statistical inference in those 20M points to make some rather excellent assumptions. 99% is down to 2M data points. Now things are getting tougher.

    I'm not saying that the author's point is not a valid one - it is! The question becomes: how to you implement it in a manner that is fair to consumers without some other big-brother type organization (who now has an intermediary lock on the data) from using it however they wish - including 'tweaking it' to suit their particular bias?

    Oh, and you have no seed money to start paying customers to join.

    Fred in IT

  12. Re:You are paid for your data. by oh_my_080980980 · · Score: 2, Insightful

    You can fuck off about the free bullshit.

    It's you property and it has a lot of value which you are not being compensated for, pure and simple. If they want your data bad enough they should be prepared to pay for it.

  13. Er..."data unions"? by xxxJonBoyxxx · · Score: 1, Insightful

    >> data unions and strikes

    Yes, before my money makes it to me, I'd want someone ELSE siphoning off a cut and then aggregating the cash to be steered toward their interests. Maybe even cutting off the Internet from me for a while to make this or that point.

    >> if wages rose to acceptable levels, it was mostly due to unions

    I'll be sure to bake my Software Architects Guild Local 1043 another batch of cookies to thank them this year. Thanks for the reminder!

    1. Re:Er..."data unions"? by Anonymous Coward · · Score: 1

      Don't worry, everyone knows that you got yours.

    2. Re:Er..."data unions"? by Anonymous Coward · · Score: 0

      Apparently you aren't working in a software sweatshop. Good for you.

    3. Re:Er..."data unions"? by AlanBDee · · Score: 1

      Neither do I and it's not hard. All you have to do is research the company you're applying for before accepting the job and see what other software developers have said about it. Glassdoor is helpful for this. You may also be able to reach out to people on LinkedIn who used to work there.

  14. And...? by Scarred+Intellect · · Score: 1

    most AI algorithms need to be trained using reams of human-generated examples, in a process called machine learning. Unless they know what the right answers (provided by humans) are meant to be, algorithms cannot translate languages, understand speech or recognise objects in images.

    most humans need to be trained using reams of human-generated examples, in a process called learning. Unless they know what the right answers (provided by humans) are mean to be, humans cannot translate languages, understand speech, or recognise objects in images.

    Just like AI, we are at some level trained the same way. We just get MUCH MUCH more sensory information for MUCH MUCH longer.

    1. Re:And...? by Anonymous Coward · · Score: 0

      Just like AI, we are at some level trained the same way. We just get MUCH MUCH more sensory information for MUCH MUCH longer.

      Until a couple generations from now when the AI in question has been training and learning for 150 years.

  15. Re: people would just pay the full cost of service by known_coward_69 · · Score: 2

    they've had driving apps with offline access on the iphone for many years. I've used Navigon. It was $20 for the US map collection and different prices for different regions all over the world. worked great in a national park with no cellular service on an old iphone 4.

  16. Supply and demand by petes_PoV · · Score: 2
    The problem with paying people for their "data" is that most of it is very low quality. The example given regarding translation fails to recognise that translation is a learned skill, an experise. You can't just ask 1000 people in the street what they think a translation of Klobürste ought to be.

    As for what they "like" or purport to like, that is equally dubious. Apart from the gap between what people say and what they will actually do, once you start paying people for all the "likes" they give you will find they start liking everything. The data becomes worthless.

    The point about placing a value on data, as with labour, misses another basic point. Labour adds value - and that is what people are paid for. Not for the act of working X hours a day, but that the product of their labour increases the value of the goods sold: turning raw material into products, turning services into benefits. Unless data from 7 or 8 billion people can be applied to produce something of value, then it is worthless.

    --
    politicians are like babies' nappies: they should both be changed regularly and for the same reasons
    1. Re:Supply and demand by Anonymous Coward · · Score: 0

      Depending on how much they pay, my scripts pretending a socially fulfilled life would be very thorough, after all, I got enough time on my hands to post here...

  17. Google rewards app by johnsie · · Score: 1

    The Google opinions rewards app on android gives you Google play credit for answering questions. You can accept or decline the questions. I think that is a much better model than just taking data.

  18. Should on be paid for Data? by Anonymous Coward · · Score: 0

    Duh

  19. My data is for rent, not for sale. by cyn1c77 · · Score: 4, Insightful

    You can't buy my data, but you can rent it via a subscription model.

  20. Nonsensical .... by King_TJ · · Score: 1

    The fact that A.I. requires human labor doesn't really justify or explain why they'd start paying everyone who contributed to the data that was gathered.
    The only people really making a given A.I. project useful are the people already employed and presumably getting well paid for writing the data collection processes, ensuring they're running successfully and making the decisions on which information will be prioritized vs. discarded, as they guide the A.I. to make the decisions they're wanting of it.

    It might be nice to think that, "Hey.... someone might pay me just for collecting data on my driving habits as I drive around." But it's not gonna happen when the info of where YOU personally drove and how you drove on a subset of the total number of roads is such a small part of the whole of the data they're trying to gather for self-driving vehicles or what-not.

    At best, a push for this would result in higher prices for everything while you'd have to manage some sort of micro-transaction fund for all the thousands of one cent payments you'd get as your share for talking in public, walking around, making purchasing decisions in stores, or whatever else they might collect about you.

  21. Re: people would just pay the full cost of service by Anonymous Coward · · Score: 0

    Found the person who needs his hand held for every little thing.

  22. Re: read the EULA facebook is your pipm and freefa by Anonymous Coward · · Score: 0

    Are you forgetting about MySpace?

  23. Do the math (on the back of a napkin) by Anonymous Coward · · Score: 0

    Take facebook for example, how much money does it make? Few billion dollars a year? How many users are there in there? 1-2 billion? Do the math...

    Congratulations, everyone just made on average few dollars a year (and now have to pay for the previously free service)

  24. Gee, this sounds familiar by jenningsthecat · · Score: 2

    This reminds me of stories I've read in many Slashdot comments. You know, the ones that talk about tech people training their (much lower salaried) replacements. This time the 'replacement' is AI, and it's not just tech workers being replaced, it's just about everyone.

    Besides, people are already being 'paid' for much of their data, in the form of services that they don't have to open their wallets for. I'm sure Google, Facebook, and the like, consider those services to be fair and sufficient payment. Judging by the vast number of users who keep using the services and don't kick up a fuss, I'd say the majority of people using those services are in agreement. Or they just don't care, which amounts to the same thing.

    --
    'The Economy' is a giant Ponzi scheme whose most pitiable suckers are the youngest among us and the yet-unborn.
  25. Re: people would just pay the full cost of service by war4peace · · Score: 1

    Maybe, simply because I've moved on from tinkering with every little thing in my life.
    Priorities...

    --
    ...gis sdrawkcab (usually not responding to ACs; don't bother posting as AC)
  26. Square peg/Round hole by rsilvergun · · Score: 1

    this strikes me as a desperate attempt to solve a problem with market solutions that probably needs to be solved with regulation.

    A buddy of mine who idolizes his right wing dad used to do this. He's got a medical condition that requires constant treatment for life. I suggested we ought to have socialized medicine (aka Medicare for All). He was opposed to this. I asked him for his solution for guys like him and he proceeded to lay out this complex scheme where insurance companies would be forced to sell at a price he could afford. When I pointed out that the end result was identical to expanding Medicare except for an extra middle man adding 20-30% to the price he reluctantly agreed with me.

    The moral of the story? There are just some things in this world that don't have free market solutions.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
  27. Re: people would just pay the full cost of service by Anonymous Coward · · Score: 0

    don't pay for offline maps. Openstreetmap is free.

  28. Cost recovery versus pursuit of infinite profit by shanen · · Score: 1

    The top problem with your analysis and the main reason it doesn't deserve "insightful" moderation is that the transaction is crooked. We have no idea what the REAL value of our personal information is. The way it works is that the corporate cancers that harvest our private information can make enormous profits in exchange for bangles and trifles.

    I think email is a better example than the ones you [4151743] mentioned. We know that the google is making substantial profits, probably even gigantic profits, from the personal information that they have harvested from our Gmail accounts. Do ANY of us know the real costs of Gmail? On an honest cost-recovery basis, perhaps a Gmail account would actually cost a few dollars per year. (I still think that a CSB-based approach could implement that model, but...)

    Anyway, it's too phucking late now. "Possession is nine points of the law", and they already possess all of our personal data, and some more besides. (That's a joke about the derived personal data that we aren't even aware of, even though it's the most insidious kind of data.) Plus they got all the lawyers. We lowly peasants are SOOOO screwed. We might as well just shut up and enjoy our "free" email accounts.

    --
    Freedom = (Meaningful - Coerced) Choice != (Speech | Beer^2), and sad sock puppets' bad mods avail them naught.
    1. Re:Cost recovery versus pursuit of infinite profit by LynnwoodRooster · · Score: 1

      No, we know what the value of your information is. Facebook is worth $590 billion, and has 2 billion accounts. That means each account is worth about $295. They make about $5 billion a quarter in profit, so each account is worth about $2.5 per quarter in cash flow.

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
    2. Re:Cost recovery versus pursuit of infinite profit by aybiss · · Score: 1

      "We have no idea what the REAL value of our personal information is."

      Shhhh! Don't give it away. The big secret is, all this data is worth nothing. People don't run out and buy things they weren't already going to buy just because they got shown the perfect ad at the perfect time, and when you consider that most of the time you get a semi-related ad for something you're not currently actively in the market for, then the effectiveness of using all this data goes down a huge amount.

      Just let them keep giving us free stuff until their business model implodes, then we can go back to the way things used to be.

      --
      It's OK Bender, there's no such thing as 2.
    3. Re:Cost recovery versus pursuit of infinite profit by shanen · · Score: 1

      If you think share price reflects anything about the real value of a company, then you are seriously delusional. The stock market has become a game played among fast computers, each of which is buying shares at insane rates based on some programmed fantasy that some other sucker will buy those shares at a higher price at some moment in the future. There are so many hilarious aspects of the bubble that you can only laugh--and wait for the implosion.

      I confess that I own some shares, but only because I'm too lazy to sell them these days.

      --
      Freedom = (Meaningful - Coerced) Choice != (Speech | Beer^2), and sad sock puppets' bad mods avail them naught.
    4. Re:Cost recovery versus pursuit of infinite profit by shanen · · Score: 1

      Well, I agree with you more than the other reply, but I still think you are seriously underestimating the "coerced" element of the freedom equation. People tend to focus on the stick aspect of personal information, the human mistakes that can be used to threaten you, while mostly ignoring the carrots from knowing your interests, tastes, and even your strengths.

      Serrendipitously, I was just reading an old "Wise Buying" guide from the BBB. The first substantive chapter is about advertising, and one of the early topics is superlatives and puffery. Look at the Orange OxyMoron in the White House and tell me again how it's completely harmless.

      --
      Freedom = (Meaningful - Coerced) Choice != (Speech | Beer^2), and sad sock puppets' bad mods avail them naught.
    5. Re:Cost recovery versus pursuit of infinite profit by LynnwoodRooster · · Score: 1

      So if Facebook only had 200 million accounts, you think it would have the same market value? The value is based upon its market dominance and number of users. Take the value that investors give Facebook, divide by the number of users, and you have the value per user that investors assume is there.

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
    6. Re:Cost recovery versus pursuit of infinite profit by shanen · · Score: 1

      When you "assume", you make an "ass" of "u" and "me". Old joke, but I think it's quite relevant here. (The joke also rendered me quite averse to the word "assume".)

      Stock prices have NEVER been based on perfect information. There is no perfect information. Stock prices are just a matter of opinion, but at least they used to be the opinions of human beings, and they used to be based on things the companies actually owned and did and were expected to do in the future. The future is another thing we know almost nothing about.

      However, now stock prices are driven by gamesters with computers. The computers have absolutely NO conception of value. They only react to inputs. The computer buys when the program 'says' some other computer will probably pay a higher price in the future and the computer sells when the program 'says' the stock price will fall in the future. There is no relation to reality there, just knee-jerk reactions to selected inputs. I think random numbers would work as well.

      Now your mention of network effects is something else. Of course a larger network should have more value than a smaller network.

      Oh wait. That's assuming the network is doing something valuable. Near as I can tell, the "value" of Facebook could only be measured in terms of wasted human time. Our most precious and only real asset. Wasted.

      --
      Freedom = (Meaningful - Coerced) Choice != (Speech | Beer^2), and sad sock puppets' bad mods avail them naught.
  29. You are compensated for your data by MooseTick · · Score: 1

    The implied contract with you and Facebook/Apple/whoever is that for the use of their services, they get to and will collect data related to your use. That could include metadata, content, usage metrics, etc. The more you use, the more you effectively pay. You don't have to use those services, and regardless of some people's option, you can still function in society without those services.

  30. Re: read the EULA facebook is your pipm and freef by Anonymous Coward · · Score: 0

    Did not enforce users using real names and often had no contact info so it is not very comparable.

  31. What if I told you by nwaack · · Score: 1

    there is no spoon.

  32. Re: people would just pay the full cost of service by Anonymous Coward · · Score: 0

    don't pay for offline maps. Openstreetmap is free.

    And usually more accurate.

  33. If you want freedom by Anonymous Coward · · Score: 0

    The key to freedom is to stop using American multinational tech products. Trump has declared a trade war on the free world. We are free not to use their products. In fact, we really shouldn't be.

  34. Re: people would just pay the full cost of service by Anonymous Coward · · Score: 0

    me goes to lookup Navigon, that sounds cool.

    RIP "Navigon Bids Farewell"

  35. They are by Trogre · · Score: 1

    That's pretty much how loyalty cards and chance-to-win surveys work.

    --
    "Nine times out of ten, starting a fire is not the best way to solve the problem." - my wife
    1. Re:They are by Anonymous Coward · · Score: 0

      I didn't realise that loyalty cards and surveys pay people for all of the data that all companies collect from them.

      I also didn't realise that a chance to win is the same as guaranteed to win.

  36. Re:You are paid for your data. by LynnwoodRooster · · Score: 1

    Likewise, you should be prepared to pay for your maps, for your e-mail account, for your photo sharing site, for your file storage, for your group chat, etc... Or you can exchange the data you CHOOSE to share (meaning - what you want to put into the free apps) and get access to those tools for free.

    --
    Browsing at +1 - no ACs, I ignore their posts. So refreshing!
  37. I should own rights to sell my credit report. by Anonymous Coward · · Score: 0

    I always felt the data generated by my existence that becomes my credit report should be owned by me.

    Thusly if you want to sell my credit report, fine but I have to allow the credit report agency permission to sell my data.

    Like news, if you want to collect it, fine. But if you want to sell it for a profit, you need my permission.

    Not for the sake of denying access, but I find it insulting that I have to pay or otherwise jump through hoops to get my credit report to check for accuracy.

  38. How much is data worth? by SoftwareArtist · · Score: 1

    There are lots of ways to value data. How much does it cost to collect the data? How much can you earn by using it? How much harm can you cause to other people by using it? These values can be very different from each other.

    Consider a criminal gang hacking computers to steal information. For each person whose data they steal they have to spend $1, but they can earn $10 using it, and then someone has to spend hours dealing with the consequences of having their data stolen, so figuring a reasonable hourly rate let's say it costs them $100. What is the value of that data?

    Consider Facebook. It's really cheap for them to get people to voluntarily turn over their data, and then they use that data to sell advertizing. The maximum value of an ad is whatever that ad convinces someone to spend. Some people object to ads and don't want their data used for that purpose (and would gladly spend money to prevent it from being used that way, if they had the choice). Other people don't mind it, and appreciate getting ads that are relevant to them. What is the value of that data?

    Consider the Large Hadron Collider. That data is incredibly expensive to collect, and no one is making any money from it. But it just might revolutionize our understanding of the universe. What is the value of that data?

    --
    "I'm too busy to research this and form an educated opinion, but I do have time to tell everyone my uninformed opinion."
  39. I would buy a nicer phone with the free dollars. by Anonymous Coward · · Score: 0

    My data is worth something, this is established.

    Technical details aside, worth translates to dollars.

    A fancy laptop is 1300-1600$. A nice tablet is a grand.

    I would take my free money from getting paid dollars for my value able data, and buy an even nicer phone.

    People don't need smart phones, smart phones don't need to be free, and frankly my data only ever became for sale through crafty fine print on page over 9000.

    Please stop selling my data.

  40. Old news by CyclistOne · · Score: 1

    Jaron Lanier proposed this a good while ago in his book, Who Owns the Future?

  41. goose by Anonymous Coward · · Score: 0

    If businesses could charge the government for the work they have to do to comply with goverment regulations, none of them would have to pay any taxes.

  42. How about just not collecting data? by Anonymous Coward · · Score: 1

    What's wrong with the "civility model"? Companies offer a service for which they charge and/or show ads. They don't collect data because it's rude and sleazy. Common sense. That strategy worked fine for Google to become a multi-billion-dollar company. Remember when they just had contextual, text-based ads along the side of search results? They changed due to greed, not because the method didn't work. I have zero sympathy for companies saying they can't make enough money without spying. In that case they're in the wrong business.

  43. Misnomer for "helicopter money" by Anonymous Coward · · Score: 0

    Poor capitalists still trying to figure out a way to deal with stagnation,
    now that the 40year long lending bubble is in its death throes.
    (hard to solve without the textbook solution: reset aka destruction aka war)

    And poor slashdoters not having a clue what they are reading.

    A brave new world is coming to an app near you...

  44. Re:You are paid for your data. by Anonymous Coward · · Score: 0

    You mock the value of user data, but if it was so worthless then why do these companies all try so desperately to collect it? Also, not all services and products which collect user data are free. Windows 10, for example, is a paid for product. So are Google's smartphones and business services.

  45. Re:You are paid for your data. by Anonymous Coward · · Score: 0

    You're an idiot if you think paying for something stops companies from harvesting your data.

  46. It's about the derived data.. by mrwireless · · Score: 1

    In my experience almost all these 'take control of your data' initiatives fail to differentiate between 'raw data' and 'derived data. It's not your raw data that is valuable, but the 'derived data' that they distill from it. By comparing your data to that of other people they claim to be able to deduce your interests, sexuality, political leaning, gullability, neuroticism, etc. That's what Cambridge Analytica did: creating a psychological profile by looking at patterns in your data.

    In the EU this derived data is recognised as personal data, and thus protected a bit. But in the US the databrokers say this derived data is an 'opinion' they formed about you, and is thus protected as a form of corporate free speech.

    We need the wider public to understand this important distinction, but I see very little sign of the experts themselves understanding it.

  47. Re: people would just pay the full cost of service by AmiMoJo · · Score: 1

    We need to invent a way of paying a few cents at a time for stuff. Until then advertising is the only way to "charge" people small amounts.

    --
    const int one = 65536; (Silvermoon, Texture.cs)
    SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
  48. Re: people would just pay the full cost of service by Anonymous Coward · · Score: 0

    Would you pay Google for every ad not displayed?

  49. Copyright? by TJHook3r · · Score: 1

    Is author suggesting that factual information about a person as well as any of their random utterances should be copyrighted? Would you like to talk to me for a tenner?

  50. Re:read the EULA facebook is your pipm and freefac by Grand+Facade · · Score: 1

    Before Classmates became spammy money grubbers it was free...

    --
    Rick B.