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Jeff Jarvis

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Privacy, Inc.: Scare and Sell

Posted: 02/18/11 10:53 AM ET

At two privacy conferences -- one in New York, the other right now in Victoria, B.C. -- I've watched the growth of privacy's regulatory/industrial complex and seen its strategy in action: Scare, then sell.

Yesterday, before I spoke at the Reboot conference, the privacy commissioner for the province, Elizabeth Denham, got up to demonize the social net and its leaders. She said that Google's Eric Schmidt believes privacy is not relevant anymore, citing his jokes about changing our names at age 21. She belittled Mark Zuckerberg, too. She bragged about helping to bring Facebook to accounts when she was in the federal privacy office. And she gloated about the fizzle of Google Buzz. Then she boasted about adding more regulators to her office and getting more resources. Scare and spend.

At a later panel, I saw a vendor go through his PowerPoint showing the growth of so many outlets of social media. He said 500 million people were using Facebook. Then he paused... dramatically. Then he said, "Scary." Why is that scary? He didn't say. He talked about watching YouTube videos as if that could be harmful in and of itself. How? He didn't say. That's how the discussion of the social web has advanced in this industry: All you have to do is say people are using these mysterious tools, and the fear is assumed. But then he sold his service. Scare, then sell.

I spoke with the head of an association of chief privacy officers. Boy, I said, I'll bet your membership is growing. In increments of a thousand, he said. He also noted how the growth in the U.S. is in privacy officers while in Europe it's in privacy regulators.

I saw the two come together at the other conference, MediaBistro's in New York, when the head of a privacy advocacy organization issued his fearsome specters for the crowd of companies and regulators. It becomes a self-powering machine: The privacy advocate feeds the regulators arguments to be scared and regulate more, then companies think they need more privacy services, and more companies are born to provide them -- companies that set up booths here in Victoria. One handed out a slick magazine with the big cover billing: "Social Media RISKS: Four Areas You Must Examine At Your Company."

In the draft of my book Public Parts -- which I'm furiously editing now -- I had not gone after privacy's regulatory/industrial complex. I'm trying hard not to pit privacy and publicness against each other as they are not binary; one depends upon the other in a continuum of choices we all make.

But the emergence of Privacy, Inc., as a industry built on scaring people is beginning to scare me.

In my talk yesterday, I warned of unintended consequences of too much regulation enacted too quickly. I cited Germany's Verpixelungsrecht, its blurring of images in Google Street View and the precedent that sets for others taking pictures in public of public views.

I also worry that efforts to bring in a "Do Not Track" list and other demonization of ad targeting could cripple the revenue of the media and news industries even as they struggle to find sustainability; it could kill news outlets and reduce journalism.

At the final panel I attended, moderated by Denham, I saw execs from trade groups and Yahoo as well as a reasonable friend from Ottawa's privacy office talk about meaningful efforts that are being made to be more transparent about advertising, which -- lord knows -- is needed.

The ad and media industries have been damned fools, not being open enough about what they do and how they do it and the value that comes to them -- in higher ad rates -- and much more importantly to the public -- in relevance (and less noise). But Yahoo showed off a good tool to see and change how you are being targeted. The Canadian Interactive Advertising Bureau put forward a good framework for self-regulation. FutureOfPrivacy.org gave good advice about seeing past tools and disclosures and making advertising actually worthwhile for consumers.

Denham, to her credit, asked the panel to define bad regulation. They said it's taking a narrow issue and using broad strokes to regulate it, doing collateral damage. She came to the view of regulation I've learned from danah boyd: that we need to concentrate on controlling use of data more than the gathering of it. (It's illogical, indeed impossible, to tell people what they may not know; it's logical and feasible to tell them what they may not do with what they know.)

So at the end of the day, I felt a bit better. But I fear that the reasonable and necessary moves to protect privacy -- and it does need protection -- won't be able to outrun the fear strategy. For fear is building a new industry, a very fast-growing industry.

Here's Mathew Ingram's GigaOm report on my talk with a brief chat. I hope to be able to post the talk itself soon.

 
 
 

Follow Jeff Jarvis on Twitter: www.twitter.com/jeffjarvis

At two privacy conferences -- one in New York, the other right now in Victoria, B.C. -- I've watched the growth of privacy's regulatory/industrial complex and seen its strategy in action: Scare, then ...
At two privacy conferences -- one in New York, the other right now in Victoria, B.C. -- I've watched the growth of privacy's regulatory/industrial complex and seen its strategy in action: Scare, then ...
 
 
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06:15 PM on 02/22/2011
Did you know the government is using social media websites for propaganda purposes. I think we've all seen a few people that we don't know in real life who think the government is always right. This makes me wonder...

http://www.rationalpublicradio.com/big-brother-does-more-than-mere-watching.html
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HUFFPOST SUPER USER
realitytrumpsbull
two 'alves of coconut!
09:11 PM on 02/20/2011
Names and numbers, data, addresses, contacts, likes, dislikes, histories, credit histories, work histories, family trees, phone numbers, ID numbers, this confabulation of personal information now permeates the internet, and our information is freely circulated between vendors, insurance companies, government entities, telemarketers, and basically, vast quantities of information are essentially for sale, and available for the taking from websites such as online vendors, with system security issues. Not too long ago, over a million users' information was taken from Facebook, for purposes not entirely clear, but probably related to marketing. Does that make Facebook 'scary'? Well, how about all the people signed up for various email services? What's to stop some cutting-edge hacker or unscrupulous business entity from either attempting to buy, or steal such information outright? For that matter, how 'safe' is the internet, when you've got people that make it their business to hack right into people's computers, for a small fee, of course? Industrial espionage now happens on the web. Probably other kinds of espionage, too. Some say that anymore, 'there are no secrets', and hence, no 'security' or privacy, either. 

People harped and griped about privacy 'back in the day' even before all these people had personal computers. They had the Privacy Act of 1974, which was supposed to stop government from misusing or selling your personal information to advertisers and so forth. Today? No such thing as privacy. But, there are still people to guard against, people that would gladly take that last $50 out of your bank account if they could get the password, people that have other purposes in mind, no, the only real 'security' there is on the internet, anymore, is not to connect to it at all, period. As for your personal information? Do we even want to know, how many striped and mirrored and archived databases contain the names and information of every man, woman, and child in America, nevermind foreign countries? Welcome to the Information Age. 

Question: Do the software security people really moonlight as hackers? Which is more lucrative, protecting data, or stealing it?
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HUFFPOST COMMUNITY MODERATOR
General Public
liberal, progressive, atheist, Democrat, SubGenius
02:44 AM on 02/20/2011
Mr. Jarvis, even if you are correct that too much is being done aboot privacy in Canada, u.s. in the U.S. are having almost nothing done to help us have privacy, and, for instance, in the State of the Union speech this year, President Obama praised Facebook and Mark Zuckerberg. The proliferation of people trying to help us have more privacy is, in the view of me and many other people, a very good thing, as we are currently at a time when we all have very little privacy, and a bit more would be nice, don't you think? The more organizations and people involved in fighting for privacy, the better, since maybe then we might have a good chance of actually getting some privacy for a change. I don't think it is necessary to "scare" people into wanting privacy; people naturally want privacy. The vast majority of celebrities, for instance, wish they had a lot more of it. I honestly don't see what you could possibly have against the idea of privacy. You complain that it hurts targeted advertisements. I say, great, I hate targeted advertisements, they are a huge invasion of privacy and quite a major annoyance, and I don't want corporations knowing all my personal information so they can target advertisements at me and maybe do other things like sell my identity to other people who could do identity theft. Really, the fact that you are scared by privacy advocates makes me wonder about you.
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HUFFPOST SUPER USER
eugenemyst
Intentionally blank
08:32 PM on 02/19/2011
Privacy is important. Education is important. Sometimes education scares the helloutta you. Sometimes it builds another bureaucracy.

The meaning of privacy is getting lost in all this. Isn't it time to respect privacy first, and ad revenues later?
07:43 PM on 02/19/2011
Financial and tax privacy protects tax evaders, tax avoiders, the corrupt and the criminal.
All financial details of all should be public.
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HUFFPOST SUPER USER
Horatio Nelson
01:45 PM on 02/19/2011
This really doesn't resonate at all, and seems to use the same scare and sell tactic it loathes. Within our GOP induced laissez-faire environment responsible regulation isn't in the cards. So be prepared for more BP spills, corporate abuses and failures, the wrath of global warming, and all else that negligence may bring. Meanwhile, liberty without privacy isn't worth having.
07:45 PM on 02/19/2011
Privacy, confidentiality and secrecy amounting to gross deception enable the ''corporate abuses and failures, the wrath of global warming, and all else that negligence may bring.''
12:11 PM on 02/19/2011
Proof from an insider of the fallacy of America's self-image as an open, optimistic, gregarious, confident society. The truth is a social collection of frightened, neurotic nebbishes who want to wall off themselves from others; Privacy Inc. knows how to exploit this.

Yet given how many corporations and other business entities engage in the business ethics equivalent of teen binge drinking or s$xting, it's easy to see why they would reach for these services.
11:47 AM on 02/19/2011
The operative word is "fear". If businesses can convince the public to be afraid "be very afraid" of
something or someone, in today's paranoid world, that's a model for a good business plan. Jon Stewart and Stephen Colbert were right on when they contrasted each other's comedy style to parody
fear. As a society we need to ask ourselves what purpose do these fear mongering businesses serve?
Are we so gullible as to put a fear factor on everything we do? And has the habit become so ingrained
that we now apply it not only to invasion of privacy issues, but to political thought and religion? There is a big difference between Ralph Nader's attack on the lack of seat belts in cars in the early 60's, and the explosion of irrational religious intolerance in our culture today.
11:18 AM on 02/19/2011
For a journalist, Mr. Jarvis appears not to have conducted any serious research on the contemporary data collection practices used by online marketing----or even willing to acknowledge the Wall Street Journal's series of in-depth reports. Privacy advocates have documented their concerns about the data collection apparatus which is across platforms and many applications--inc. social media and mobile services. We await to see the documentation Mr. Jarvis provides in his forthcoming book. He can compare his data with what we have filed at the FTC and also have on our sites: www.democraticmedia.org; www.digitalads.org and the work of other privacy groups and regulators (such as the EU's Article 29 Working Party of Data Protection Commissioners).

Mr. Jarvis's book, we hope, will also discuss the growing role data collection and profiled-based targeting is playing in the creation of editorial content; how this system threatens both editorial integrity and privacy. If it does not, he's missing one of the most important stories on the real future of serious news and journalism.
10:35 AM on 02/19/2011
Where is this impending super-technology that will eliminate the core lifeblood of the internets? How and where will governments swiftly enact regulation, swooping down and plundering databases of demographic info while single-handedly destroying internet media as we know it? The horror! The horror!

As for privacy on the internet, there's a reason why all your favorite sites and applications are free. If GMAIL or Facebook changed their business model tomorrow, eliminating ads but charging $4.95/mo, people would just flock to another free info-collecting service.

If the masses don't have the common sense to protect information they would rather be private information (who knows if this is true) then how would they adopt any new privatization technology en masse, pay for it, and use it effectively? Especially when such technology already exists, often times open source.

Finally, Facebook is probably the most transparent internet media company in its lengthy ToS about what exactly it collects from you (EVERYTHING!). But why do other companies get such a pass from the media and blogosphere, like monster.com or the Google pantheon?
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HUFFPOST SUPER USER
Glenn Osborne
08:40 AM on 02/19/2011
I am the gatekeeper of my privacy on social media. Being informed about the information that identity thieves need and use is your best protection. Other than that I know what I post on facebook is there for the world to see, and I am comfortable with that. What I do online is akin to my behavior in a public place. When you are in a public place, chances are there is a permanent video record of your every move. Somehow I find this more intrusive than social networking sites where I can control what I post.
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HUFFPOST SUPER USER
Richard Lauren
GetInstaSite
07:29 AM on 02/19/2011
"Why is that scary?"

Jeff, you are joking right?

How about because almost NONE bothered to read the privacy policy and T&C before they joined?
Or that Facebook is profiling them by invading their privacy with no controls in place to regulate them an what they do with that info?
Or that Facebook CEO is a THIEF with no morals that is precisely the wrong sort of person to be trusting with private data?

Need I go on?

If you are too ignorant to understand why that is scary, don't bother us with your opinions please and earn you AOL $95 blog-fee elsewhere :)
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HUFFPOST BLOGGER
Jeff Jarvis
10:34 AM on 02/19/2011
Then don't join. 600 million others choose to.
02:57 AM on 02/19/2011
Completely unconvincing argument. I'd much prefer my privacy - as if it existed.
11:47 PM on 02/18/2011
Fact is Facebook or any social networking site, like Match.com could disappear overnight.

...just like Pets.com
...just like Webvan

Maybe people who are so loyal to Facebook think they will be saved like Amazon where they don't have to ever make a profit, just constantly promoted freely on corporate mass-media so pension fund managers readily keep stuffing their stocks into those accounts.

In the end Amazon and Facebook investors will lose their shirt.

People's tastes in internet business are just as fickle as Boston Markets going bankrupt or even McDonald's receiving bail outs from Ben Bernanke.
HUFFPOST SUPER USER
xanas
libertarian, voluntarist, anarchist
12:09 AM on 02/19/2011
It's not just internet business, it's business in general. The only reason you see the cartelization in many industries and lack of change is due to government regulations that lead to barriers to entry. Customers are extremely disloyal, they will switch on a dime to a better product/service when it is offered. This is why business has huge incentive to get government involvement.

Most big business already knows this, and there are plenty of those who are learning:
http://blog.mises.org/15370/gao-financial-planners-dont-need-more-regulating/

If you don't want your business at permanent risk from competition and changing consumer preferences then ask the government to help. And look for crises that occur or someone who is legitimately pissed off about some event that happened to them and encourage them to demand a law to create licensing/etc. to supposedly prevent x problem.
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McGuffin18
The best lack all conviction...
11:12 PM on 02/18/2011
You know what would make advertizing more relevant? Put more money in my pocket.

When you have no discretionary spending to do, it's ALL just noise.