Apple CEO Tim Cook Calls For Laws To Tackle 'Shadow Economy' of Data Firms (time.com)

Apple's chief executive has called for regulation to tackle the "shadow economy" of data brokers -- intermediaries who trade in the personal information of largely unsuspecting consumers -- as the company continues its push to be seen as supportive of privacy. Tim Cook, in an op-ed for Time Magazine published on Thursday, said: One of the biggest challenges in protecting privacy is that many of the violations are invisible. For example, you might have bought a product from an online retailer -- something most of us have done. But what the retailer doesn't tell you is that it then turned around and sold or transferred information about your purchase to a "data broker" -- a company that exists purely to collect your information, package it and sell it to yet another buyer. The trail disappears before you even know there is a trail. Right now, all of these secondary markets for your information exist in a shadow economy that's largely unchecked -- out of sight of consumers, regulators and lawmakers.

Let's be clear: you never signed up for that. We think every user should have the chance to say, "Wait a minute. That's my information that you're selling, and I didn't consent." Meaningful, comprehensive federal privacy legislation should not only aim to put consumers in control of their data, it should also shine a light on actors trafficking in your data behind the scenes. Some state laws are looking to accomplish just that, but right now there is no federal standard protecting Americans from these practices. That's why we believe the Federal Trade Commission should establish a data-broker clearinghouse, requiring all data brokers to register, enabling consumers to track the transactions that have bundled and sold their data from place to place, and giving users the power to delete their data on demand, freely, easily and online, once and for all.

Comments

Few Good Solutions for Industry with Regulation

[ranton]

These tech companies are starting to feel significant push back from consumers on data privacy issues, but they risk losing competitive advantage if they are the first to budge. The data is just to valuable. The government setting up laws which help protect privacy while creating a competitive environment where everyone is following the same rules is perhaps the only good option. They certainly aren't capable of governing themselves in a way which protects consumers (not that any other industry has ever been able to do that without government intervention).

Whats the difference between this and CC's

[pgmrdlm]

Buisness's have been selling our data way before downloadable apps became popular. key cards to save money at supermarkets. That buying information was always being sold. Credit Card spending habits, again. Always was being sold.

This practice of selling information on your buying/browsing habits has been going on forever. And nobody really talked about it before, so again. Nothing different.

With that said though, I would expect any regulation to encompass any area where your private data is being sold.

Re: Few Good Solutions for Industry with Regulatio

[ShanghaiBill]

Are there any real, specific examples of Microsoft monitizing (selling) the data they collect off hosts

Microsoft owns Linkedin, which has the same business model as Facebook.

Although it happened before Microsoft acquired them, Linkedin has used some extremely slimy business practices. They would deceive people into disclosing passwords to their email accounts, and then send out massive spams to their contacts. When I created my Linkedin account, I though "WTF are they asking for that?", but my spouse fell for it, and they auto-logged into her Yahoo account and spammed over a thousand people on her behalf, without her permission, many only casual acquaintances that she hadn't heard from in years and barely knew.