A Glimpse into Data Protection
In the age of technology, e-commerce continues to grow. In 2019, consumers in the United States alone spent $601.75 billion, a 15% increase from 2018 (Young, 2020). It has become one of the essential tools in our day-to-day lives. As online stores and platforms have burgeoned, the use of online personal data has had a heavy impact on individuals, businesses, governments, and other stakeholders. Consequently, the issue of personal privacy has evolved and grown in importance. Computer privacy refers to the way personal information is used, collected, shared, and stored on personal devices and while using the internet (Winston & Strawn). The increased reliance on the internet to make purchases and interact with others, especially in the wake of the pandemic has driven even more concerns about privacy (Berroya, 2020). With the unprecedented increase in online consumer activity, companies' use of consumer information will be ripe for further investigation.
The consumer market is a prime target for businesses wishing to use consumer data for various purposes. For example, 11 pharmaceutical companies, including powerhouses such as Pfizer and SmithKline Beecham, recently created an alliance that tracked consumer click activity on websites in order to gather data without the consumers’ knowledge (Sullivan, 2000). However, consumers often know very little of how their datas is used or traded. Once companies store this type of data, some may use it to enhance their marketing efforts; others may choose to sell the information to other companies. The private information gathered by companies is far from secured. Amy Boyer, a 20-year old woman from New Hampshire, was stalked and killed after her killer purchased her social security number for $45 (Sullivan, 2000). Another individual stole thousands of credit card numbers and posted them for sale at one dollar apiece (Sullivan, 2000). Incidents like these worry consumers, and beg the question: Where are my rights? How did this person find me so easily? Consumers no longer feel safe and protected when providing their personal information during online purchases and other activities.
There are many state laws related to data protection and individuals continue to look to their governments for leadership in ensuring the protection of their information. On a state level, California and Illinois lead the nation in the regulation of information privacy. In California, the California Consumer Privacy Act is the most comprehensive privacy law in the US, and the Bolstering Online Transparency Bill requires bots to identify themselves. (National Law Review, 2020). In Illinois, regulators have passed the Biometric Information Privacy Act and the Illinois Artificial Video Interview Act, which guards biometric data for both consumers and employees, and regulates AI during video interviews, respectively (National Law Review). As technology continues to advance, some states are creating laws that pertain specifically to developments such as bots and artificial intelligence. However, it may be difficult for regulators to be responsive to emerging innovations. As concerns about privacy continue to arise, one can only hope that other states will follow in the footsteps of California and Illinois.
Despite the various state-level initiatives previously mentioned, the federal government has not promulgated any regulations related to information privacy. Without federal law, privacy regulation is inconsistent and unique to each individual state. For instance, a California resident who orders a product from Missouri, that is manufactured in Florida, could potentially have her information regulated by three different states (Beckerman, 2019). This raises many questions. Which state’s body of law has the most authority? Which state is responsible for a breach of law? What are the similarities and differences among the different states’ laws? What is the impact of those differences on the cost and timeliness for both consumers and businesses? So many questions aren’t being addressed by an overarching body, creating confusion and chaos and costing businesses hundreds and thousands of dollars in litigation and lawyers fees.
A federal law regarding consumer data privacy would address the inconsistency in state laws. It should act as an overarching law and guideline for states to follow so that both consumers and the free market will be protected, allowing e-commerce and retail platforms to grow while ensuring the safety of consumers’ data. In the midst of a global pandemic, the coronavirus is driving the wide-scale conversion to consumer internet utilization via e-commerce. Though the pandemic is currently the main concern, it is only a matter of time before the issue of consumer data privacy has a widespread impact.
Works Cited:
Beckerman, M. (2019, October 14). Americans Will Pay a Price for State Privacy Laws. Retrieved June 26, 2020, from https://www.nytimes.com/2019/10/14/opinion/state-privacy-laws.html
Berroya, J. (2020, June 04). Congress Must Act to Protect Americans' Privacy. Retrieved June 26, 2020, from https://www.realclearpolicy.com/articles/2020/06/04/congress_must_act_to_protect_americans_privacy_495194.html
National Law Review. (2020, June 3). Video Blog Series: These Four Key Privacy Laws Have Major Implications for Companies in 2020. Retrieved June 26, 2020, from https://www.natlawreview.com/article/video-blog-series-these-four-key-privacy-laws-have-major-implications-companies-2020
Sullivan, B. (2000, November 17). Online privacy fears are real. Retrieved June 26, 2020, from http://www.nbcnews.com/id/3078835/t/online-privacy-fears-are-real/#.XuuCrp5KhTY
Winston & Strawn. (n.d.). What is the Definition of Online Privacy? Retrieved June 26, 2020, from https://www.winston.com/en/legal-glossary/online-privacy.html#:~:text=The definition of online privacy is the level of privacy,data, communications, and preferences.
Young, J. (2020, March 09). US ecommerce sales grow 14.9% in 2019. Retrieved July 7, 2020, from https://www.digitalcommerce360.com/article/us-ecommerce-sales/
