CS 99 Final Paper The Ethics of Privacy in a Digital Economy Jason Gelman

Thesis Given the complex technical issues, is it possible to hold companies to a higher ethical than legal standard when addressing issues of customer privacy and anonymity? Does doing so hinder competition in the digital economy?

Topics Introduction Legal Standards Ethical Standards Economics, and why computers matter Enforcement of Ethical Standards Enforcement of Legal Standards Conclusions

Introduction Anonymity –Nobody can know who you are when collecting data about you –You can be intruded upon, so long as it is done so randomly –You have a reasonable expectation not to be identified by name Privacy –Nobody can collect data about you –You will not be intruded upon without informed consent –Your name is tied to your actions, but neither will be available

Legal Standards

H.R.97. Personal Privacy Protection Act. Stalkerazzi bill. –Prohibits physical intrusion into privacy for commerical purposes (aka press). Exempts law enforcement. Sponsor: Rep Conyers, John, Jr. (D-MI) (introduced 01/06/99). H.R.313. Consumer Internet Privacy Protection Act of –A bill to regulate the use by interactive computer services of personally identifiable information provided by subscribers to such services. Sponsor: Rep Vento, Bruce F. (D-MN). H.R Collections of Information Antipiracy Act. –Creates new property rights for owners of databases of public information. Sponsor Coble, Howard (R-NC) H.R Wireless Communications and Public Safety Act of –Mandates location information for cellular phones for 911. Limits use of information. Sponsor Rep Shimkus, John (R-IL). –Measure passed House, roll call #24 (415-2) on 2/24/99.

Legal Standards Standards are being redefined every day Congress is generally paranoid about privacy and will tend to over-legislate rather than under-legislate There will be some laws passed that infringe upon privacy (cell phone GPS) Collection of information is OK, but you need to inform the consumer first (and give a chance for them to refuse).

Ethical Standards ACM (Association for Computing Machinery) –“1.7 Respect the Privacy of Others” IEEE Computer Society –Trying to raise the bar Societal Standards –We are willing to disclose the same information in some places and not in others.

Economics, and Why Computers Matter Perfect information is the goal of a capitalist economy. Markets thrive on the difference between publicly available and unavailable information Adapting on an individual basis Ability to process information from diverse sources

Perfect information is the goal of a capitalist economy. If supply and demand are known (perfectly) in advance, there is no excess production and there are no shortages If other market variables are known, the guesswork is eliminated and products can be better matched to consumers Capitalist markets will always (in the absence of government intervention) move to become more efficient

Public vs. Industry Information Middlemen are able to increase prices because of inefficient distribution channels The internet is able to directly match buyers and sellers –Allows for same profit with less cost to consumers.

Adapting to Individuals Personality Databases –Allows corporations to know exactly how much an individual will pay for a certain product –Knows which products an individual wants –Web sites (such as Amazon.com) can offer customers only the products they are interested in.

Processing Information from Diverse Sources The establishment of a personality database was not possible until computing matured –Could not share databases –Could not track users’ shopping habits (not just purchases) –Analysis of databases was not possible in a meaningful way

Enforcement of Ethical Standards DoubleClick scandal Other Advertisers Amazon.com’s practices Grocery store discount cards and specialty credit cards When are standards enforced? Why is there no uniform enforcement? –Imperfect information on the part of the public

Enforcement of Legal Standards Privacy infringement vs. loss of anonymity Cookie stalkers (is it pertinent?) –Inadequate legal devices in place to pursue those who invade privacy. Internet cases are treated as real-world cases

Conclusions We are losing anonymity, not privacy We have never had privacy If we want privacy, we need to legislate Striving toward the perfect market economy is the impetus for this information collection There are very few malicious sources-- most collectors have the intent to offer more personalizes services. Government is so far behind that change will come from public pressure, not legislation

THE SOLUTION Disclosure by companies Access personal information by individuals Companies must come clean about their practices –This will most probably only be accomplished through legislation or the threat thereof It is not possible to hold companies to a higher ethical than legal standard. Any attempt to do so is a farce.

Sources berlaw/18law.html Epstein, Richard. The Case of the Killer Robot