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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.

45 of 113 comments (clear)

  1. Few Good Solutions for Industry with Regulation by ranton · · Score: 2, Interesting

    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).

    --
    -- All that is necessary for the triumph of evil is that good men do nothing. -- Edmund Burke
    1. Re:Few Good Solutions for Industry with Regulation by ShanghaiBill · · Score: 2, Insightful

      All big tech companies harvest data, but Apple relies on it far less than Google, Facebook, Microsoft, and Amazon. So any restrictive laws will disproportionately hobble Apple's competitors. Tim is trying to frame this as "concern for the little guy", but it is really just self-interest.

    2. Re:Few Good Solutions for Industry with Regulation by pak9rabid · · Score: 1

      We have a winner

    3. Re:Few Good Solutions for Industry with Regulation by Anubis+IV · · Score: 5, Insightful

      All big tech companies harvest data, but Apple relies on it far less than Google, Facebook, Microsoft, and Amazon.

      They don't just rely on it less: they collect less, and they've done so all along.

      Moreover, Apple could have walked down the same path that Google, Microsoft, and others have gone down by collecting and monetizing more data on their customers, but they voluntarily chose not to do so when presented with that opportunity. Instead, they chose to align their business interests with those of their customers. That decision cost them opportunities at the time and has been suggested to have set them back technologically when it comes to mapping, voice assistants, and other areas, but it's starting to pay off now that people are slowly waking up to just what it is that they've been giving away all along.

      So, yes, it's self-serving of them to hammer their competitors on privacy, but they only have the ability to hammer their competitors on privacy because they chose to NOT follow their competitors down the path of literally selling out users. That decision was a forward-thinking one at the time, and it's coming back to pay dividends now.

    4. Re:Few Good Solutions for Industry with Regulation by CyberKender · · Score: 1

      Expecting a capitalist business to do something that cuts into their profits is a fool's errand. That Apple even considers this means they have a plan that they think will benefit them, as well as the populace.

      --
      CyberKender
      Apparently Appointed Lord Mayor of There
  2. One of the #1 brokers of your data... by cayenne8 · · Score: 4, Informative
    This is one of the top data brokers in the US, and world for that instance.

    Acxiom

    They have for decades been gathering info on first the US and later the world. They get mailing lists from the US post office. They cut the binders off US phone books and scan them. They get all the info off those warranty cards you send in, and all sorts of creative sources of information on you.

    Even the US used them after 9/11 to try to hunt down people.

    Hell, even major credit card companies use them to clean their databases.

    I think they even now maybe own one of the credit bureaus, like Trans Union. If not owning them they are very cozy in business or used to be.

    --
    Light travels faster than sound. This is why some people appear bright until you hear them speak.........
    1. Re:One of the #1 brokers of your data... by Anonymous Coward · · Score: 1

      Even the US used them after 9/11 to try to hunt down people.

      And this right here is why there will never be regulations to shut them down.

      What people don't realize after hearing about things like PRISM is that a lot of US government spying is outsourced to companies like Acxiom. It might be illegal for the US government to collect the information they collect without a proper warrant - but it's not illegal for private companies to do it!

      This isn't to say that the NSA doesn't spy on Americans themselves, just that they use all available sources, and that includes these data brokers.

  3. Ah, sweet irony by argStyopa · · Score: 1

    " intermediaries who trade in the personal information of largely unsuspecting consumers "

    Would Apple be quite so in favor of this we we, say, included hardware firms in the 'intermediaries' category?

    --
    -Styopa
    1. Re:Ah, sweet irony by ceoyoyo · · Score: 1

      Probably. Apple tried to launch an ad network and it failed, so they staked out a differentiating position in favour of personal privacy. It's widely suspected that it's hurting them: Siri not retaining to everything ever said to it, for example. Individuals don't seem to care enough about their privacy to make it a winning business strategy, but maybe they can get some laws passed in favour of it.

    2. Re:Ah, sweet irony by Anonymous Coward · · Score: 1, Insightful

      " intermediaries who trade in the personal information of largely unsuspecting consumers "

      Would Apple be quite so in favor of this we we, say, included hardware firms in the 'intermediaries' category?

      Unlike Google and Facebook, Apple actually has a business model that doesn't involve strip-mining the dead bodies of our privacy looking for loose change.

      I'm about as strong a free-market libertarian as one can be, but Google et al have gone waaaaay too far down the "doing evil" rabbit hole and they need to be reigned in.

      You have no right to the PRIVATE DETAIL OF MY LIFE, ESPECIALLY WHEN YOU COLLECT IT SURREPTITIOUSLY.

      IMO, they should have to FUCKING ASK for the EXACT details of what they want to collect, and IF I say "OK", that OK automatically expires after, say, 90 days.

      Otherwise, nope, they can't collect it.

      And just to make it fun - pierce the corporate veil for any company that violates that. Think Fuckerberg would allow privacy violations at his moral shithole if his fortune were at stake?

    3. Re:Ah, sweet irony by tepples · · Score: 1

      IMO, they should have to FUCKING ASK for the EXACT details of what they want to collect, and IF I say "OK", that OK automatically expires after, say, 90 days.

      If you find a document through a web search engine, and it pops up a page-modal alert box asking for permission to collect and disseminate your interest profile in exchange for without-charge or discounted access to the document you are trying to read, would you find that acceptable? If you don't say "OK", then fine; the document's publisher doesn't get your personal data, and you don't get to read the document.

    4. Re:Ah, sweet irony by Plumpaquatsch · · Score: 1

      Probably. Apple tried to launch an ad network and it failed,

      It failed because it wasn't giving advertisers "enough" user information.

      --
      Of course news about a fake are Fake News.
    5. Re:Ah, sweet irony by ceoyoyo · · Score: 1

      Yes. Perhaps they have real principles and they were hurting them back then as well as now.

    6. Re:Ah, sweet irony by zieroh · · Score: 1

      apple is the shadiest of all the big tech companies. Would never trust my personal data to them

      You're spouting nonsense.

      --
      People who say "sheeple" have about as much sophistication as an AOL user, and in fact are probably actually AOL users.
    7. Re:Ah, sweet irony by Plumpaquatsch · · Score: 1

      Thats a small part of the reason. Instead of cheerleading for apple please read and educate yourself. https://techcrunch.com/2016/03/28/the-downfall-of-the-walled-garden-heres-why-iad-failed/

      After the first couple of of paragraphs reaptedly confirmed what I wrote I quit reading - why don't you quote the "real" reason?

      --
      Of course news about a fake are Fake News.
    8. Re:Ah, sweet irony by Plumpaquatsch · · Score: 1

      Aren't Apple in various ways assisting and helping the U.S. government?

      Yeah, the laws say they have to.

      And, for that matter. the data collecting companies you want to defend as being better than Apple gladly do the same, - without protesting against putting backdoors into their products, like Apple has repeatedly done.

      --
      Of course news about a fake are Fake News.
    9. Re:Ah, sweet irony by Plumpaquatsch · · Score: 1

      Ahh the sweet narrow mindedness of the apple worshiper, basking in the glow of the RDF.

      So I'm narrow minded because you can't prove me wrong. Poor snowflake.

      --
      Of course news about a fake are Fake News.
  4. Simple enough by Anon-Admin · · Score: 1

    Make some changes to the Fair Credit Reporting Act and apply it to all consumer reports. Thus you get the following

    Access to Your Report – The act requires reporting agencies to provide you with any information in your file upon request once a year.

    Protected Access – The act limits access to your file to those with a valid need.

    Accurate Reporting – If inaccurate information is discovered in your file, the reporting agency must examine the disputed information, usually within 30 days. If the inaccurate information cannot be verified, the reporting agency has a responsibility to remove it. If you are not able to clear up the matter, you are allowed to add a statement to your file explaining the situation.

    Have Outdated Information Removed – Negative information must be removed from your file after seven years.

    Maintain Medical Information Privacy – reporting agencies are prohibited from obtaining or using medical information.

    Seek Damages – You have the right to sue and seek damages in a state or federal court from anyone, such as a consumer reporting agency or a user of consumer reports, who violates the Fair Reporting Act.

    Know When Your Report Is Used Against You – If you are denied credit, insurance,r employment, or any service because of your report, you can ask for the specific reason for the denial.

  5. Tim Cook's principals vs Apple's biz agenda by LostMyAccount · · Score: 1

    I have trouble sorting out Tim Cook's privacy principals so frequently espoused in press releases, op-eds and quips to the press from Apple's business agenda oriented towards marketing their platform as "privacy friendly".

    It'd go a long way towards taking Cook and Apple as sincere if Apple would, in great detail, share with us what data they collect on their users, how they use it, and what data they allow Apps to collect, and what if any strings they attach to that data (which I doubt they can enforce anyway).

    I'm going to go out on a limb and guess that Apple's only in the data collection game in any competitive sense if you're an iPhone user, but compared to Google and others, they're bush league and non-competitive, so "Apple as privacy advocate" isn't really because they care about data privacy, but because it's not a business they're competitive in. But if you *are* an i-device user there is, in fact, a ton of data collected about your usage which is of business advantage to Apple.

    Which makes me question the sincerity of Cook's privacy speeches -- how do I know that most of this isn't just a marketing ploy to move users to their platform where they can grab the valuable data for themselves? Maybe they don't sell it to third parties, but they still collect it. And there's not exactly a lot of transparency on what they allow Apps to collect, either.

    Overall, I'm inclined to believe that my privacy is moderately more protected on an iPhone than an Android, but only modestly.

    1. Re:Tim Cook's principals vs Apple's biz agenda by ceoyoyo · · Score: 1
    2. Re:Tim Cook's principals vs Apple's biz agenda by KixWooder · · Score: 3, Informative

      You can already request everything Apple has about you, there isn't much in it. How often you've had a repair done, your login/logour of Apple services, what apps you've downloaded and when, etc.

      https://www.businessinsider.co...

      --
      I hate fat people.
    3. Re:Tim Cook's principals vs Apple's biz agenda by Dixie_Flatline · · Score: 1

      Look at it like this: Apple makes its money by selling you a physical device. After that, they provide a few services to keep you locked in. That's a very good business model, and doesn't rely on you giving up any appreciable privacy.

      Give that, it's trivial for Apple to play up the privacy side of their business. It wasn't necessarily what they set out to do, but it fell in their lap, and now they're leveraging it because it gives them a competitive advantage.

      But I think we can trust they'll continue on this path for a while, because nothing is more damaging than a privacy scandal from a company that claims to be all about your privacy.

      So TRUST in Apple's business agenda, because it's all about trying to limit the tools of its nearest competitors.

    4. Re:Tim Cook's principals vs Apple's biz agenda by fbobraga · · Score: 1

      Only Apple has an iPhone data? Apps can't access it?

    5. Re:Tim Cook's principals vs Apple's biz agenda by Plumpaquatsch · · Score: 3, Informative

      I have trouble sorting out Tim Cook's privacy principals so frequently espoused in press releases, op-eds and quips to the press from Apple's business agenda oriented towards marketing their platform as "privacy friendly".

      It'd go a long way towards taking Cook and Apple as sincere if Apple would, in great detail, share with us what data they collect on their users, how they use it, and what data they allow Apps to collect, and what if any strings they attach to that data (which I doubt they can enforce anyway).

      https://support.apple.com/en-us/HT208501

      Understand and control the personal information that you store with Apple
      As part of our commitment to your privacy, we’re making it easier than ever for you to review and take control of the data that you store with Apple. Data and privacy tools
      We’ve introduced new data and privacy tools on your Apple ID account page. Sign in to your Apple ID account page on a Mac, PC, iPhone, or iPad. Then scroll down to Data & Privacy and select "Manage your data."
      The complete set of self-service data and privacy tools is available to customers in over 240 countries around the world:
      Get a copy of the data that you store with Apple that's associated with your Apple ID. Deactivate your Apple ID temporarily. Delete your Apple ID—and the data associated with it—permanently. Request a correction to your personal data.
      Additional privacy improvements
      To ensure that we’re meeting our own high standards for protecting the data we store on your behalf, we’ve conducted a comprehensive review of the instances where we collect and hold your data. As a result, Apple products now include new and updated data and privacy statements that make it easier than ever to understand how Apple will use your personal information. We show you these statements before you sign in with your Apple ID or turn on any new features that use your data.
      We’re proud of our commitment to privacy and will continue to apply our industry-leading, privacy-by-design standard to ensure that great experiences don’t come at the expense of your privacy and security. For more information, visit apple.com/privacy.

      --
      Of course news about a fake are Fake News.
    6. Re:Tim Cook's principals vs Apple's biz agenda by ilsaloving · · Score: 1

      Apps are a more complex subject, and I know the last time this issue came up in an interview or call or whatever, Cook took a mulligan and said that Apple cannot control what third parties do with data that their apps collect.

      Apart from selective permission control (which Android finally now also has), I have no idea what special measures (if any) Apple is taking to prevent apps from collecting info they have no right to, such as EMEI data, etc.

      Ilsa

  6. Whats the difference between this and CC's by pgmrdlm · · Score: 4, Interesting

    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.

    --
    Anonymous comments are as pathetic as the anonymous "sources" that contaminate gutless journalism from the New York Time
    1. Re: Whats the difference between this and CC's by datavirtue · · Score: 2

      Kroger gives you something for tracking you at thier stores. No comparison.

      Credit card spending habits are anonymized. They know that a certain kind of person made a roughly categorized type of purchase. They have no idea what products you bought etc. No comparison.

      --
      I object to power without constructive purpose. --Spock
  7. Re:Slashdot by Dunbal · · Score: 1

    If you're here and complaining about slashdot, you haven't been here long enough.

    --
    Seven puppies were harmed during the making of this post.
  8. Freedom of speech and association by reanjr · · Score: 1

    If you tell me a thing, I can share that thing. If I know a thing, I can sell that knowledge. These concepts have been enshrined into the United States law. You need a clear and pressing reason to restrict the right to free speech.

    If you don't want your info shared, don't give it out.

  9. Re:Fuck you. Taxation is theft. by sinij · · Score: 3, Insightful

    If anything, Apple does far too little to reduce their tax bill. They should be zeroing it out the way that GE does.

    Every dollar in government hands is dollar either wasted, or spent on causing bloody mayhem.

    If you are not positing this from Somalia, then you are a hypocrite.

  10. They cannot let us opt-out by rickb928 · · Score: 2

    100% (or close to it) participation is critical to the business. Having both total access to us, as well as good quality/representational data, is crucial to the business. If the data is reduced by opt-out to any significant degree, the risk of a selection bias that makes the data marginally representational makes it virtually (!) USELESS.

    So if you opt-out, and your favorite store knows you shop there but don't show up in their vast and viral marketing subconscious, they don;t know enough about you to expand their marketing, develop reliable trait definitions, and ultimately can't hit you as hard as they were paying for. And so they don't want to pay for semi-useless or less-useful data. The data aggregators lose revenue. And power. And they will fight back.

    They will ignore your opt-out. Their surveillance will become even more covert. They will lie, and pay the fines (always insufficient to deter abuse). They will partner up with those who cannot be defied.

    There isn't much we can do, short of punish the transgressors by refusing to do business with their willing partners, and that assumes we don't NEED to do business with these partners, some of which we will have to, no matter what.

    Lost. We have lost.

    --
    deleting the extra space after periods so i can stay relevant, yeah.
  11. Re: Few Good Solutions for Industry with Regulatio by ShanghaiBill · · Score: 4, Interesting

    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.

  12. Re: Few Good Solutions for Industry with Regulatio by datavirtue · · Score: 1

    Right. Being a product manufacturer they just recognized a person's data as sacred and something to be respected.

    The other "tech" firms were only ever able to monetize by serving ads. As soon as they went down that rabbit hole they got data greedy. Thier survival depends on getting data every which way from Sunday. They only way they can collect it and have it mean anything is to pin it to an identifiable person...otherwise thier data becomes detached and meaningless.

    This has all come about quite unexpectedly. At first we were cool with Google showing us ads to use thier search. It felt a little dirty but some thing had to pay for that amazing and much needed service.

    Going public, they needed to grow. There was no way to use thier data to grow unless they could track trends to a person.

    Imagine trying to make sense of website traffic without attaching it to an IP address or session. Garbage data without the identifier.

    Now we are asking regulators to let the air out of this massive industry.

    Don't even get me started on Facebook. The value they provide doesn't even come close to Google and they are harvesting much more personal information.

    --
    I object to power without constructive purpose. --Spock
  13. Re: Few Good Solutions for Industry with Regulatio by datavirtue · · Score: 2

    No taxes!? Hold up, is that a thing? Sign me the fuck up.

    --
    I object to power without constructive purpose. --Spock
  14. Re: hmmm by datavirtue · · Score: 1

    Apple could double if they tracked and sold customer data.

    --
    I object to power without constructive purpose. --Spock
  15. more Apple trolling ? by swell · · Score: 1

    When the summary says
    "as the company continues its push to be seen as supportive of privacy."
      - it is correct, the company does do that.

    But the clear implication is that this effort is misleading. That Apple does not, in reality, support privacy. That is dishonest and doesn't belong on Slashdot.

    --
    ...omphaloskepsis often...
  16. Re: Few Good Solutions for Industry with Regulatio by Anubis+IV · · Score: 2

    Just off the top of my head, check your network traffic if you have a fresh install of Windows 10. I recall reading on Slashdot a few years back that Google's servers are being sent some form of telemetry data from fresh installs. Oh, and what about the personalized ads that show up in Windows and Xbox? How do you think that happened? Then there's LinkedIn, owned by Microsoft, which is quite obviously in the business of selling access to user data.

    I'm sure I'm just scratching the surface here, but yes, Microsoft sells access to the data they collect off of their users.

  17. The government themselves by Stan92057 · · Score: 1

    The government themselves are the biggest data miners on the planet, Its called the census. and people want to think our government cares about our privacy when they have been making billions off of it themselves and still do. were fucked...The big players our government, then Google and FB follow inline so the less being able to data mine the more value it will have that's why apple doesn't want small players..and yes i concede they do more then any company to protect their customer privacy that's why their stuff is so expensive..but not the only reason. man polished metal finish is the bomb hahahah

    --
    Jack of all trades,master of none
  18. Re:Apple Worship by Anubis+IV · · Score: 1

    I actually read Apple's terms of service a few years back (they're a surprisingly easy read compared to most I've read), and I don't recall anything resembling the sort of verbiage you're talking about. Could you cite it please?

    I'll wait.

  19. LOL, too funny! by JustAnotherOldGuy · · Score: 1

    "Apple CEO Tim Cook Calls For Laws To Tackle 'Shadow Economy' of Data Firms "

    No irony here, nosiree, not one bit, not even a smidgen.

    --
    Just cruising through this digital world at 33 1/3 rpm...
  20. PRISM by AHuxley · · Score: 1

    When the US gov gets bulk data from US brands is ok.
    Junk encryption, US gov and mil working on US brands products and services.
    US brands that think the US freedom of speech is sinful and that the internet has to be curated.
    Brands that shadow ban, report and remove users content?

    Now a US brand wants to tell the world about their understanding of terms like "privacy"?

    --
    Domestic spying is now "Benign Information Gathering"
  21. Re: Few Good Solutions for Industry with Regulatio by Bert64 · · Score: 1

    By other "Tech" firms you mean google, data mining has always been their business.
    Microsoft on the other hand started out like Apple, selling products - yet they chose to also follow google presumably out of greed to add an extra revenue channel.

    --
    http://spamdecoy.net - free throwaway anonymous email - avoid spam!
  22. Re: Few Good Solutions for Industry with Regulatio by CrimsonAvenger · · Score: 1

    Oh, and what about the personalized ads that show up in Windows and Xbox?

    What about them? Never got one, never will.

    That said, would you prefer the television model? Just serve up random ads to you? If ads are going to be part of the world, you pretty much have the choice of random ads, or ads restricted to things you might, just possibly, be interested in buying...

    Don't know about you, but if I have to see ads, I'd rather see ads for products I might want rather than random whatever....

    Oh, and amazingly, I've never actually felt a compulsion to buy something just because I saw an ad for it.

    Disclaimer: I use ad-blocking software. I haven't actually seen an ad on my computer in a very long time. But I couldn't care less that someone is trying to show me ads for products/services I might be interested in buying....

    --

    "I do not agree with what you say, but I will defend to the death your right to say it"
  23. Re:Because I am not getting my 30% by Plumpaquatsch · · Score: 1

    Thanks for telling us the official views of your employer Facebook. Or is it Google?

    --
    Of course news about a fake are Fake News.
  24. Re:hmmm by Dunbal · · Score: 1

    The only one full of hate here is you. Chill out :)

    --
    Seven puppies were harmed during the making of this post.