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We live in an entitlement era, when rights are seemingly invented out of whole-cloth. It should come as no surprise, therefore, that a bit of “rights inflation” is creeping into debates about Internet policy. Today, for example, a coalition of groups and individuals (many of which typically advocate greater government activism), have floated a “Declaration of Internet Freedom.”  My concern with their brief manifesto is that is seems to based on a confused interpretation of the word “freedom,” which many of the groups behind the effort take to mean freedom for the government to reorder the affairs of cyberspace to achieve values they hold dear.

The manifesto begins with the assertion that “We stand for a free and open Internet,” and then says “We support transparent and participatory processes for making Internet policy and the establishment of five basic principles:”

  1. Expression: Don’t censor the Internet.
  2. Access: Promote universal access to fast and affordable networks.
  3. Openness: Keep the Internet an open network where everyone is free to connect, communicate, write, read, watch, speak, listen, learn, create and innovate.
  4. Innovation: Protect the freedom to innovate and create without permission. Don’t block new technologies, and don’t punish innovators for their users actions.
  5. Privacy: Protect privacy and defend everyone’s ability to control how their data and devices are used.

This effort follows close on the heels of a proposal from Rep. Darrell Issa (R-CA) and Sen. Ron Wyden (D-OR) to craft a “Digital Bill of Rights” that, not to be outdone, includes ten principles. They are: Continue reading →

A headline in the USA Today earlier this week screamed, “Hello, Big Brother: Digital Sensors Are Watching Us.”  It opens with an all too typical techno-panic tone, replete with tales of impending doom:

Odds are you will be monitored today — many times over. Surveillance cameras at airports, subways, banks and other public venues are not the only devices tracking you. Inexpensive, ever-watchful digital sensors are now ubiquitous.
They are in laptop webcams, video-game motion sensors, smartphone cameras, utility meters, passports and employee ID cards. Step out your front door and you could be captured in a high-resolution photograph taken from the air or street by Google or Microsoft, as they update their respective mapping services. Drive down a city thoroughfare, cross a toll bridge, or park at certain shopping malls and your license plate will be recorded and time-stamped. Several developments have converged to push the monitoring of human activity far beyond what George Orwell imagined. Low-cost digital cameras, motion sensors and biometric readers are proliferating just as the cost of storing digital data is decreasing. The result: the explosion of sensor data collection and storage.

Oh my God! Dust off you copies of the Unabomber Manifesto and run for your shack in the hills!

No, wait, don’t. Let’s instead step back, take a deep breath and think about this. As the article goes on to note, there will certainly be many benefits to our increasing “sensor society.”  Advertising and retail activity will become more personalized and offer consumers more customized good and services.  I wrote about that here at greater length in my essay on “Smart-Sign Technology: Retail Marketing Gets Sophisticated, But Will Regulation Kill It First?”  More importantly, ubiquitous digital sensors and data collection/storage will also increase our knowledge of the world around us exponentially and do wonders for scientific, environmental, and medical research.

But that won’t soothe the fears of those who fear the loss of their privacy and the rise of a surveillance society in which our every move is watched or tracked. So, let’s talk about what those of you who feel that way want to do about it.

Continue reading →

Betcha didn’t know that January 28th is Data Privacy Day. That’s the day on which it’s customary to give gifts of cash and money to your favorite privacy advocate. No, not really. Though Hallmark hasn’t gotten a hold of it, it is a day on which some extra attention gets paid to privacy issues.

I’ll be speaking at two events coinciding with Data Privacy Day. On Wednesday, I’ll be speaking at the 2010 Internet Data Privacy Colloquium put on by a group called Dialogue on Diversity. Register here.

And on Thursday I’ll be speaking at an event put on by the Future of Privacy Forum called “Online Privacy: Your Reputation is ON the LINE.” (Get it? “ON the LINE”? Online? We’re talkin’ computers, folks.) You can register for it on the event’s page.

There you have it! Data Privacy Day! The one day this year, among many, that you should lavish your favorite privacy expert with gifts and praise. And gifts.

Today, Jim Harper and I took on Andy Schwartzman of Media Access Projects and Gigi Sohn of Public Knowledge in this New York Times online debate about, “Should Consumers Fear the Comcast Deal?”  Like other media critics, Schwartzman and Sohn adopt the gloom and doom tone that many worrywarts use when discussing the deal. Andy Schwartzman says “Comcast’s proposed acquisition of NBC Universal poses a genuine threat to free expression and diversity of speech in our democratic society.” And Gigi Sohn predicts that “With all that programming under its control, Comcast will have every incentive to take its shows off of the Internet and force consumers to buy a cable subscription to get online access to that programming.”

But as Jim Harper and I point out, we’ve heard such Chicken Little horror stories before. Whether it was AOL-Time Warner, News Corp-DirecTV, Sirius-XM, or whatever else, the story is always that a veritable media apocalypse awaits if the deals aren’t blocked.  But it just ain’t so. As I note in my response:

Back in the real world, the sky never fell — except on the merging companies! Just two years after the deal was announced, AOL-Time Warner had lost over $100 billion and Time Warner has now spun off AOL entirely. The News Corp.-DirecTV marriage ended in divorce after just three years. And Sirius-XM flirted with bankruptcy earlier this year as listeners continue to flock to other audio options. The moral of the story: markets worked. Shareholders abandoned bad deals, new niche markets developed, and innovative digital technologies continue to revolutionize media.

And as Harper notes in response to silly claims about restricting access to content or communications, “Comcast-NBC can no more impinge on communications among Internet users than AOL-Time Warner did.” Which is to say, not at all. They would be doomed if they tried to play such games. You can’t make money or retain viewers or customers by cutting off access to content or conduit. Finally, “the genuine threat to free expression and diversity of speech” is not Comcast-NBC, as Schwartman suggests, but a government big enough to crush media companies and control media platforms as if they were their playthings.

For more details about the actual historical record, check out my recent PFF white paper: “A Brief History of Media Merger Hysteria: From AOL-Time Warner to Comcast-NBC.”

Progress Snapshot 5.10 from The Progress & Freedom Foundation

A recent telephone poll conducted by professors at Berkeley and the University of Pennsylvania concluded, “Contrary to what many marketers claim, most adult Americans (66%) do not want marketers to tailor advertisements to their interest.” The study’s authors claim that their poll is the “the first nationally representative telephone (wireline and cell phone) survey to explore Americans’ opinions about behavioral targeting by marketers.” They also assert that the poll indicates that “if Americans could vote on behavioral targeting today, they would shut it down.” Advocates of regulating online data collection have trumpeted this poll as evidence consumers demand legislation to protect their privacy. “This research gives the F.T.C. and Congress a political green light to go ahead and enact effective, but reasonable, rules and policies,” declared Jeff Chester, a leading critic of online advertising.

But what is most surprising about this poll is not that 66% of users said they do not want tailored online ads, but that 34% of users said they did! The key, initial question of “whether or not you want the websites you visit to show you ads that are tailored to your interests,” presents no trade-off. The fact that anyusers said “yes” indicates that many users paused to do the rough mental math about the unarticulated trade-off between the benefits of receiving tailored ads and the costs of that tailoring.

The methodology of opinion polls necessarily affects respondents’ mental calculations, rendering polls not just easily manipulated, but inherently unreliable as indicators of real preferences. Every poll reflects the bias of its authors to some degree by the way questions are worded, the order in which they are asked, the sample surveyed, etc. The easiest way to bias the results of a poll is to omit any mention of the trade-offs at issue. This poll simply buried the issue of trade-offs in a heavily loaded follow-up question: After telling respondents that marketers “often use technologies to follow the websites you visit and the content you look at in order to better customize ads,” the interviewer asked whether the respondent would allow advertisers to “follow [them] online in an anonymous way in exchange for free content.” Only 10% of users said they would allow this voluntary exchange.

What does this tell us about whether, and how, government should further regulate online advertising? Precious little: Not only does this poll overstate the costs of targeted advertising, understate its benefits, and ignore the tools available to users to address their privacy concerns but, like any opinion poll, this one tells us more about the psychology of decision-making under the artificial uncertainty of polls than about the choices users would actually make in the real world. Continue reading →

I was reading this Sun Magazine interview with the always-interesting Nick Carr and I liked what he had to say here about the public’s inconsistent views on privacy:

If you ask people whether they’re concerned about the ability of the government or corporations to gather information about them online, they’ll say yes. But if you look at how they behave online, they don’t display much fear of exposing themselves. What that says about people — and it’s true for most of us — is that we will readily forgo our privacy in exchange for convenient and useful services, particularly if they’re free. That’s a trade-off you make all the time on the Internet. Even if people were more conscious of how this information might be exploited, I doubt most would change their behavior.

This reminds me of the classic “hamburgers for DNA” quip from security expert Bruce Schneier who once famously noted that:

If McDonalds in the United States would give away a free hamburger for an DNA sample they would be handing out free lunches around the clock. So people care about their privacy, but they don’t care to pay for it. In the United States we have frequent shopper cards, which will track down people’s purchases for a 5 cents discount on a can of tuna fish. I don’t think you can convince the public to care about it.

Continue reading →

And so begins another fight over data retention. As Declan summarizes:

Republican politicians on Thursday called for a sweeping new federal law that would require all Internet providers and operators of millions of Wi-Fi access points, even hotels, local coffee shops, and home users, to keep records about users for two years to aid police investigations. The legislation, which echoes a measure proposed by one of their Democratic colleagues three years ago, would impose unprecedented data retention requirements on a broad swath of Internet access providers and is certain to draw fire from businesses and privacy advocates. […] Two bills have been introduced so far — S.436 in the Senate and H.R.1076 in the House. Each of the companion bills is titled “Internet Stopping Adults Facilitating the Exploitation of Today’s Youth Act,” or Internet Safety Act.

Julian also has coverage over at Ars and quotes CDT’s Greg Nojeim who says the data retention language is “invasive, risky, unnecessary, and likely to be ineffective.”  I think that’s generally correct.  Moreover, I find it ironic that at a time when so many in Congress seemingly want online providers to collect and retain LESS data about users, this bill proposes that ISPs be required to collect and retain MORE data. One wonders how those two legislative priorities will be reconciled!!

Don’t get me wrong. It’s good that Congress is taking steps to address the scourge of child pornography — especially with stiffer sentences for offenders and greater resources for law enforcement officials. Extensive data retention mandates, however, would be unlikely to help much given the ease with which bad guys will likely circumvent those requirements using alternative access points or proxies.  Finally, retention mandates pose a threat to the privacy of average law-abiding citizens and impose expensive burdens of online intermediaries.

We’ve had more to say about data retention here at the TLF over the years.  Here’s a few things to read: Continue reading →

Debates about online privacy often seem to assume relatively homogeneous privacy preferences among Internet users.  But the reality is that users vary widely, with many people demonstrating that they just don’t care who sees what they do, post or say online.   Attitudes vary from application to application, of course, but that’s precisely the point:  While many reflexively talk about the “importance of privacy” as if a monolith of users held a single opinion, no clear consensus exists for all users, all applications and all situations.  

If a picture is worth a thousand words, this picture makes the point brilliantly—showing:

locations where [Flickr] users are more likely to post their photos as “public,” which is the default setting, in green. Places where Flickr users are more likely to put privacy controls on their photos show up in red.

Of course, geography is just one dimension across which users may vary in their attitudes about privacy, but the map makes the basic point about variation very well.  Seeing what users actually do in real life says a lot more about their preferences than merely polling them about what they think they care about in the abstract—as my colleagues Solveig Singleton and Jim Harper argued brilliantly in their 2001 paper With A Grain of Salt: What Consumer Privacy Surveys Don’t Tell Us (SSRN).