Database Surveillance

Overview

Many simple things we do results in reduced personal privacy. When we send in the warranty card on a new appliance, register software, seek medical assistance, or even sign a petition, we give our private information to someone else. Our personal data is then entered into a database, but not for the purpose of storage. The data is analyzed using database surveillance techniques in order to find marketing niches to sell more products to and/or to be sold to other marketers, so they can try and sell more of their products to the niche.

Consumers are increasingly aware and concerned about the proliferation of their personal data. Privacy advocacy groups have created guidelines and rules for handling personal data, and so have the corporations that are building the databases. Both sides have differing opinions on how personal data should be handled. While there are some federal and state laws regarding personal data privacy, there are far too few or enforcement of the ones that do exist to stop the growing trade of data in our information society. Meanwhile, the arguments between more legislation and the ineffectiveness of any legislation to help preserve privacy, seem to have the effect of perpetuating the status quo.

Personal Data Privacy

When most people think about personal privacy, the first thoughts that come to mind are ones of being able to be alone; or closing the blinds to keep anyone from seeing actions that are considered private. While this line of thinking certainly has some merit, it’s only a small piece of personal privacy. Privacy involves the right to be anonymous, to be able to go to a public place and not be monitored by others. It is our right to know and control what happens to our personal data.

What is Personal Data?

Personal data is key information about your self. It can include:

· Name and Address

· Age and Gender

· Telephone number

· E-mail address

· Social Security Number

· Credit Card Numbers

· Credit History

· Medical History

· Income

· Likes and Dislikes

· Family information

Loss of Privacy

Studies show that more people are becoming aware of their loss of personal data privacy. A report compiled by Statistical Research, Inc. called How People Use the Internet 2001 claims that 2 out of every 3 web users will abandon a site that asks for personal information. The public now realizes that as more of their personal data is collected and analyzed, the less personal privacy they have.

Protecting Identity

Massive databases, identity theft, and access to personal information are big concerns to Internet users. When you make a purchase in a brick-and-mortar store that requires personal information such as your zip code, you can question why they need the information. If you pay by credit card, the store will be getting personal data anyway, but if you pay in cash, you can refuse to divulge any personal data. When making purchases online, or even gaining access to information online you are often required to freely hand over personal data. Some personal privacy advocacy groups offer suggestions on how to protect your identity online in these situations. Basically, they suggest that you lie. Some of the tips suggested are:

· Give your Social Security number as 078-05-1120. This was a number that was printed on sample cards that were given out in the 1940s. Also, advertisements are allowed to use numbers in the range 987-65-4320 through 4329.

· Give your address as the address of your hometown city hall, park, or police station.

· Give your telephone number as 1-202-224-3121, the congressional switchboard.

Database Surveillance

The personal data gathered from consumers during routine purchases is saved in massive commercial databases. These databases become commercial enterprises for the firms that maintain them. The personal information they contain is sold to anyone with enough money to pay for their use. Respect for the privacy of the company’s customers is not a consideration when the firm stands to increase profits from the data they’ve obtained. Further, they actively invest in software and computer technology that allows them to analyze, segment, and package the harvested data for sale to direct marketing companies.

Profiling

Database profiling can be thought of as electronic stereotyping. The voluminous personal data is analyzed and manipulated to produce composite portraits of consumers. Marketers believe that mathematical formulas can be used to accurately segment large databases into distinct consumer types, and predict the buying habits of the individuals that are placed in each one. The data is analyzed primarily based on:

· Purchasing patterns

· Financial decision patterns

· Social contact patterns

The data analysis is done to both reduce risks and increase profits for commercial enterprises. For example, risk reduction can involve extending credit to the consumer type is determined most likely to handle the financial responsibility, while profits can be increased by discovering new markets or even creating new products for a composite consumer type.

In the world of database profiling, there are no individuals, there are only hypothetical individuals. Any individual assigned to a consumer type through data analysis may have only a passing connection to the type they’ve been assigned. Statistical likelihoods cannot predict with any certainty how an individual will act. They can however increase the accuracy over the majority of the individuals with in the composite consumer type.

Placing Blame

The perception of the public has often been that the technology involved is somehow to blame for the increase in loss of privacy. While the technology of large computer databases have allowed the proliferation of database surveillance to increase dramatically, the companies that are manipulating and using the data are really to blame. Increasingly, the public is becoming aware of big business’ attitude toward the personal privacy of consumers. In a press conference in 1999, Scott McNealy, the head of Sun Microsystems was asked about the privacy safeguards built into a new networking software his company had released. Mr. McNealy replied that his company has no concern for consumer privacy, and rather testily added, “You have zero privacy anyway, get over it.”

Regulating Privacy

A legislative solution to the rapid increase in the loss of personal privacy does not seem to be forthcoming in the United States. Business and consumer groups have argued that federal regulation of privacy concerns is needed as it will increase consumer confidence and boost sales while protecting the consumer. Other business and consumer groups have argued against federal regulation would have a negative effect on consumer attitudes toward participating in a market of enforced privacy and both business and consumers would suffer. As with most situations in government, the issue of privacy is split into two camps.

Privacy Legislation is Needed

Some consumer groups and government committees believe there needs to be federal legislation and even a governing federal body to take control of privacy issues. However, they are likely to have a fight on their hands since many state governments have already enacted privacy legislation. Federal laws would supercede existing state laws concerning privacy to avoid a complicated mess of contradictory measures. Federal legislation advocates argue that an across-the-board set of laws and rules is needed for big business to follow. They point out how difficult and expensive it will be for business to comply with a multitude of conflicting laws.

Privacy Legislation is Not Needed

On the other side of the issue, there are consumer groups and government committees that believe that privacy protection is best left in the hands of private industry. The Federal Trade Commission recently announced they plan to concentrate on enforcing existing privacy laws rather than attempt to create new ones. The lack of any consensus on how to deal with privacy issues was cited as the main reason for not pursuing new federal legislation. For now, it seems that the conflicting viewpoints on the regulation of privacy will keep the battle between personal data privacy and database surveillance in status quo.