Difference between revisions of "Data brokers"

Revision as of 00:27, 12 March 2018

Data brokers refers to the industry where companies collect information on consumers and package the data for sale to businesses or government agencies. Most commonly, data is gathered by Data brokers when people carry out activities online: purchases, web searches, social media pages, etc. The data is aggregated to create profiles on individuals; and, oftentimes, this information is analyzed and people are grouped into useful lists or categories that make the information desirable for purchase. There are three main types data broking companies: ones that create marketing, risk mitigation, or people search products. There are few laws that currently govern these companies, and ethical dilemmas have risen as a result of mass collection of personal information. Critics argue that consumers are often not aware that data broking companies are acquiring data about them, and believe that companies violate the privacy of these individuals and could potentially jeopardize the safety of consumers. There are further concerns regarding the categorization of individuals, and the potential mistreatment and repercussions that can stem from sensitive grouping.

Origins

In 1965, Gordon Moore realized the fast-paced improvement of transistors on a chip, and observed that they doubled every year from 1959-1965 ^[1]. This later became known as Moore's Law, which is the expectation that transistors will continue to double every two years. The cost of computing has decreased as well, allowing for the improvement of software and hardware.

The rapid advancement of more powerful computing, networking, and data storage has led to the field of Big data. Big data is the collection and analysis of large amounts of data by both government agencies and corporations ^[1]. The Big Data field has allowed for the formation of the Data Broking industry. Companies began to enter the market that specialized in various types of massive data collection and analysis. This data is then sold by Data brokers to government agencies and companies, who use the information for a variety of different purposes: verifying an individual's identity, marketing products, and detecting fraud.

Data Collection

Most often consumers are not aware of the existence of data broking companies, and do not know that data is being collected about them. In May 2014, the Federal Trade Commission (FTC) released a report that shed light on the Data broker industry, Data Brokers: A Call for Transparency and Accountability. Before this report the interworking of the Data broker industry was a mystery. Within the document the FTC listed the main Data broker sources: the government, publicly available sources (social media, blogs, the internet), and commercial data sources.

Government Sources

Data brokers gather information from the federal, state, and local governments. The government agencies that are typically used are the U.S Census Bureau, Social Security Administration, U.S Postal Service, Federal Bureau of Investigation, U.S Secret Service, and the European Union. These sources provide information on these individuals: ethnicity, age, education level, household makeup, income, occupations, commute times, and addresses. The U.S Secret Service and European Union give access to most wanted lists or terrorists watch lists ^[2]. State and local governments provide information, including licenses, real property and assessor records, assessed value, liens, deeds, mortgages, mortgage releases, pre-foreclosures, identifying information about the owner, voter registration information, motor vehicle and driving records, and court records.

The information collected from government sources is not always directly accumulated from state and local governments. Often, Data brokers will hire individuals to go to these local offices to gather the data or they have relationships with these offices that give them access to the data automatically (Ramirez, Edith , et al. "Data Brokers: A Call For Transparency and Accountability." Federal Trade Commission, 27 May 2014, www.ftc.gov/reports/data-brokers-call-transparency-accountability-report-federal-trade-commission-may-2014. ). There are some state laws that prohibit companies to use this information. For example, the Federal Driver's Privacy Protection Act ("DPPA") which does not allow the release of motor vehicle and driving recorded information unless it is used for or requested by law enforcement, insurance, and identity verification or fraud detection ("18 U.S. Code § 2721 - Prohibition on release and use of certain personal information from State motor vehicle records." LII / Legal Information Institute, www.law.cornell.edu/uscode/text/18/2721.). Also twenty-two states do not allow the use of voter registration record for commercial or non-election related purposes. (automatically (Ramirez, Edith , et al. "Data Brokers: A Call For Transparency and Accountability." Federal Trade Commission, 27 May 2014, www.ftc.gov/reports/data-brokers-call-transparency-accountability-report-federal-trade-commission-may-2014. ).

Publicly Available Sources

Commercial Data Sources

Examples of Data Brokers

Ethical Dilemmas

Privacy

Issues with Categorizing Individuals

References

1. ↑ ^{1.0 1.1} Richards, Neil M.; King, Jonathan H. "Big Data Ethics," Wake Forest Law Review vol. 49, no. 2 (2014): p. 393-432.; http://heinonline.org/HOL/Page?handle=hein.journals/wflr49&div=16&g_sent=1&casa_token=&collection=journals
2. ↑ Ramirez, Edith , et al. "Data Brokers: A Call For Transparency and Accountability." Federal Trade Commission, 27 May 2014, www.ftc.gov/reports/data-brokers-call-transparency-accountability-report-federal-trade-commission-may-2014.

Big textAlso called Information brokers. Concept of Data Brokers: These are companies that collect information about you: names, addresses, incomes, social security number, where you go on the internet and who you connect with online and so much more. This information is sold to other companies to help with marketing, and there are few regulations governing these “data brokers”. ^[1] Specifically going to talk about the ethical concerns of “data brokers” in regards to privacy. The data that we don't know is being collected and shared about us.

1. ↑ ^{1.0 1.1} write citation