May 16, 2012 George Mason Conference on Competition, Search and Social Media

Structuring Competition in Privacy

Randal C. Picker
Leffmann Professor of Commercial Law

The Law School The University of Chicago

What is the Widget: The Limits of Observability, Inquiry and Disclosure

May 15, 2012

Copyright 2012 Randal C. Picker

1. Streetview photographs 2. Open Wi-Fi info (MAC address, SSID and more) 3. Stray payload data (email, searches and other communications)
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FCC Google Wi-Fi Report, 13 Apr 2012

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Maryland Social Media Password Statute, 2 May 2012

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Sorrell v. IMS Health (US, 23 June 2011)

Copyright 2012 Randal C. Picker

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Copyright 2012 Randal C. Picker

FTC Brief Filing, 8 May 2012

Paying for Stuff

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Copyright 2012 Randal C. Picker

A Three Letter Alphabet

P
Supply Curve

Lattes for $ Apps for $

Apps for Data (Data as currency)

Demand Curve

Q
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Cash Use Transparency Rules

Companies should provide clear descriptions of what cash they collect, why they need the cash, how they will use it, when they will delete the cash or de-identify it from consumers, and whether and for what purposes they may share cash with third parties. 9 May 15, 2012 Copyright 2012 Randal C. Picker

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White House Privacy Report, February, 2012

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TRANSPARENCY: Consumers have a right to easily understandable and accessible information about privacy and security practices. At times and in places that are most useful to enabling consumers to gain a meaningful understanding of privacy risks and the ability to exercise Individual Control,
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companies should provide clear descriptions of what personal data they collect, why they need the data, how they will use it, when they will delete the data or de-identify it from consumers, and whether and for what purposes they may share personal data with third parties.
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Unfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting commerce, are hereby declared unlawful.
Federal Trade Commission Act
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Dear Consumer, We provide this app to you, in whole or in part, in exchange for data that you provide to us through your use of the device on which the app is used. We may use those data in many ways (including sharing them with others) and those uses may change from time to time, but what we really try to do with those data is make money (cash, moolah, scratch: you get the idea). If you think that is an unfair trade, please dont use the app and delete it.
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FTC Privacy Report (March, 2012)

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1. Privacy by Design: Companies should promote consumer privacy throughout their organizations and at every stage of the development of their products and services. 2. Simplified Consumer Choice: Companies should simplify consumer choice. 3. Transparency: Companies should increase the transparency of their data practices.
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Federal Trade Commission, March, 2012

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FTC: Privacy By Design EPA: Green By Design OSHA: Safe By Design USDA: Tasty By Design? [Insert Agency Name]: ____ By Design Top-down, hardwiring outcomes not valued by consumers?
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Transparency Competition

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Copyright 2012 Randal C. Picker

Cash Price Transparency Competition

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Google is in the process of making some unpopular changes to some of their most popular products. Those changes, cloaked in language like transparency, simplicity and consistency, are really about one thing: making it easier for Google to connect the dots between everything you search, send, say or stream while using one of their services.
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Microsoft Ad, 1 Feb 2012

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Microsoft Blog, 1 Feb 2012

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Google Public Policy Blog, 1 Feb 2012

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No Ads Private 1: Empty Not Private 3: Pay

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Ads 2: Empty 4: Free

WSJ, What They Know - Mobile
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Copyright 2012 Randal C. Picker

First-Party Transparency: I tell you what I do The price of the latte is These data are transferred to me and Third-Party Transparency: A third party provides information about data transfers This app sees the following data Theres an app for that. Copyright 2012 Randal C. Picker

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22575. (a) An operator of a commercial Web site or online service that collects personally identifiable information through the Internet about individual consumers residing in California who use or visit its commercial Web site or online service shall conspicuously post its privacy policy on its Web site, or in the case of an operator of an online service, make that policy available in accordance with paragraph (5) of subdivision (b) of Section 22577.
May 15, 2012

California Online Privacy Protection Act (eff. 1 July 2004)

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22575. (b) The privacy policy required by subdivision (a) shall do all of the following: (1) Identify the categories of personally identifiable information that the operator collects through the Web site or online service about individual consumers who use or visit its commercial Web site or online service and the categories of thirdparty persons or entities with whom the operator may share that personally identifiable information.
May 15, 2012

California Online Privacy Protection Act (eff. 1 July 2004)

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California AG Deal with Amazon, Apple, Copyright 2012 Randal C. Picker 27 Google, HP, Microsoft, RIM (22 Feb 2012)

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Privacy Transparency App Copyright 2012 Randal C. Picker 28 (beta, invite only)

Govt as App?: Why doesnt the FTC create a privacy dashboard app? Govt information by choice rather than via hardwired direct regulation of production; direct measure of demand for govt regulation

Price advantages, privacy concerns? Method limits and the CFAA?: Could/should the govt spoof? Copyright 2012 Randal C. Picker

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Thank You

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