Facebook under fire, but it鈥檚 just part of 鈥榮urveillance economy鈥
Google, Amazon, and social media platforms track and analyze people's personal data so they can predict what they'll buy and even how they'll vote. Privacy advocates want Congress to set limits on the practice.聽
Google, Amazon, and social media platforms track and analyze people's personal data so they can predict what they'll buy and even how they'll vote. Privacy advocates want Congress to set limits on the practice.聽
In 2007, over lunch with Google officials at a conference, Shoshana Zuboff asked a question: How could she get her house removed from Google Earth, the company鈥檚 mapping program.
The whole room fell silent. 鈥淚t was like I had just announced that I was going to murder somebody,鈥 the Harvard social scientist recalls. The executives responded by asking why she would want to stand in the way of its mission to organize the world鈥檚 information and make it accessible to people.
That moment contributed to her growing realization that the digital economy 鈥 about which she had once had so much hope 鈥 had a hidden side, something she would come to call 鈥渟urveillance capitalism.鈥
Although Facebook is currently at the center of a backlash against its sale of users鈥 personal data, the trend is much larger than that. It involves Google, Microsoft, Amazon, and a growing number of firms with nondigital roots, who are building tools to track and analyze how people act and where they go in the physical world as well as online.
The reason? If they can predict what consumers will do 鈥 what they鈥檒l buy, where they鈥檒l travel, even how they鈥檒l vote 鈥 their data becomes extremely valuable.
These predictive insights 鈥渉ave been magnetic for offline businesses: insurance, retail, finance, a whole variety of services that are tapping into this,鈥 says Professor Zuboff, whose new book, 鈥淭he Age of Surveillance Capitalism: The Fight for a Human Future at the New Frontier of Power,鈥 comes out in September.
Suppose, for example, that Amazon or Google put their voice-activated digital assistant into a car dashboard, she says. 鈥淭hen the assistant tells you: 鈥楬ey, there鈥檚 a McDonald's on the next corner鈥 or 鈥業 know you鈥檙e hungry, why don鈥檛 you go to McDonald's?鈥 鈥
Such notions of surveillance can quickly conjure up fears of sci-fi dystopias, like 鈥1984鈥 or 鈥淭he Matrix,鈥 where governments or machines track people to control them. But the reality is at once more mundane and more subtle: Companies aim to understand you so they can make money by capitalizing on your behavior or influencing it.
Tech鈥檚 big benefits
So far in the digital era, consumers have focused largely on the substantial benefits of services that are often free. Imagine driving to a new location without Google鈥檚 maps or keeping up with friends without Facebook? This story would have taken far longer to research without Google search.
The tradeoff is that people give away tons of personal information with little idea of where it goes, how it鈥檚 used, or how long it鈥檚 stored. Researchers are asking: Are the benefits worth the costs to society and democracy? And what does it say about the role of people? They鈥檙e no longer consumers in the 20th century conception of the word: people who are catered to by companies selling products and services. You might say that, to surveillance capitalists, people aren鈥檛 even the product. They are the providers of raw materials 鈥 the data to be mined, analyzed, and sold. 鈥淲e鈥檙e the stuff that鈥檚 left behind after the excavation equipment has moved on,鈥 Zuboff says.
The internet companies 鈥渁re making the market more efficient,鈥 says Vibhanshu Abhishek, an information systems expert at Carnegie Mellon University in Pittsburgh. 鈥淭here鈥檚 a strong economic rationale for doing this鈥 digital tracking. But 鈥渋t should be done with transparency so that consumers can know what personal data is being made available.鈥
The current flashpoint is Facebook. Recent revelations that the social media giant gave access to sensitive user data to an outside researcher, who then gave it to a political consulting firm hired by the Trump campaign, have rocked the company. Its CEO, Mark Zuckerberg, has reportedly agreed to testify on privacy before Congress while turning down a similar request by Britain鈥檚 Parliament (which is investigating the same firm for its role in the Brexit campaign).
The Facebook backlash
Facebook has come in for specific criticism because of its loose data security. 鈥淚鈥檓 surprised by the fact that they allowed third-party applications to collect that information,鈥 says Mr. Abhishek. 鈥淐ompanies like Google and Amazon don鈥檛 do that. They鈥檙e very secretive.鈥
Attorneys general in at least 37 US states and territories are investigating Facebook, as is the Federal Trade Commission. That probe could prove costly to the social media giant, because in 2011, it signed an FTC order and promised to give consumers clear and prominent notice and obtain their express consent before sharing their personal information beyond the consumers鈥 privacy settings. In the current scandal, the political consulting firm, Cambridge Analytica, appears to have gotten access to records on up to 50 million Facebook users without their consent.
On Wednesday, the company announced new steps to make it easier for users to control the use of their data or even delete it.
A wider trend of surveillance
But if Facebook is the biggest target for criticism now, it's just part of a vast industry that deals in consumer data. The firms that track and use personal data range from makers of smartphone apps and cable-TV companies to large data brokers that scoop up or buy information from a variety of sources and resell it.
Among the results: customized or almost personalized online ads, based on consumers' recent digital history. A 2013 congressional report highlighted how data can be used to target consumer segments with precise profiles. Examples of such marketing segments, given in the report, included financially vulnerable populations labeled "retiring on empty," "rural and barely making it," or "rolling the dice."
Often the lines can blur between loss of privacy and a gains of safety or convenience.
Last year, for example, the Property Casualty Insurers Association of America wrote a House subcommittee asking for 鈥渞easonable鈥 access to data from cars with automated driving systems. The issue is: If an accident happens, who was in control of the car: the system or the driver? And already, insurance companies like Progressive and General Motors Assurance Company (GMAC) have introduced usage-based insurance, which monitors car and GPS data to offer the best rates to the safest drivers.
New rules needed?
Many privacy advocates say government oversight is needed.聽
鈥淭here鈥檚 a lack of control of your personal data,鈥 says Jeramie Scott, a surveillance expert at the Electronic Privacy Information Center, a privacy advocacy group in Washington. 鈥淭here鈥檚 a lack of understanding of how that info is used鈥. There needs to be some rules and protections in place that allow the market to innovate with those protections in place.鈥
Typically, privacy is a bipartisan issue. Mr. Scott hopes the Facebook fiasco along with last fall鈥檚 breach of credit agency Equifax will be enough of a tipping point to get privacy advocates on both sides of the aisle to take action.
But it鈥檚 complicated, because consumers are conflicted, especially over social media. Seven in 10 Americans say they use some kind of social media, according to Pew Research. And while roughly half of Americans don鈥檛 trust social media sites to protect their data, according to a 2016 Pew survey, a nearly identical share don鈥檛 trust the federal government either.
Politicians are conflicted, too, because data from Facebook and Google are transforming election campaigns.
鈥淭hey have a huge conflict of interest,鈥 says Jeff Chester, executive director of the Center for Digital Democracy, which advocates new privacy safeguards. 鈥淭hey all know that they won their most recent campaign ... using these very tools and techniques.鈥
Developing the rules of the road for surveillance capitalism will take some time, Zuboff says, just as it took time to develop protections such as collective bargaining and limits on working hours to rein in the industrial capitalism of a century ago.
鈥淭here鈥檚 no one silver bullet,鈥 she says. 鈥淯ltimately, we鈥檙e dealing with a new situation and my view is that this will take new forms of collective action that will be 21st century solutions.鈥
Staff writer Mark Trumbull contributed to this story from Washington.