Money & Finance News

Proposed Law to Force Big Tech Firms To Reveal the Value of Consumer Data

The big clampdown on misuse of user data by big tech firms is almost around the corner, thanks to GDPR.

A new bill has been filed which will force big tech firm to report to financial regulators and the general public what type of consumer data are being collected and how they plan to use them for profit making, or whatever. Filed by a Democrat in the US Senate, the bill was to require companies to report to financial regulators and to the public what consumer data they collect and how they leverage it for profit.

Proposed Law to Force Big Tech To Reveal the Value of Consumer Data
A newly proposed law to force big tech firms and service providers to reveal the amount and value of consumer data they are collecting and the profit they are generating through them is being considered.

“When a big tech company tells you its product is free, consumers are the ones being sold,” said Hawley.

He also stated:

“these ‘free’ products track everything we do so technology companies can sell our information and then use it to target us with creepy ads. Tech companies do THEIR best to hide how much consumer data is worth and to whom its sold to.

this legislation gives consumers control of their data and will show them how much these services which are often free, costs.”

Consumers are paying for these free products with their data instead of with their wallets, he noted. The overall lack of fairness and transparency in this market made it impossible for users to know when they are giving up their data.

Top Tech Firm Shield Our Data and Uses It for Profit

The Dashboard Act’s Provision requires four methodologies, they include:

  1. Require commercial data operator services with more than 100 million monthly active users to disclose the type of data they collect, as well as to provide their users with an assessment of the value of the collected data.
  2. Require commercial data operators and service providers to file an annual report on the value of user data they’ve collected as well as contracts with third parties involving data collection.
  3. Require commercial data operators to allow users to delete all or individual fields of data collected and also data disclosure to allow users know how their data is being used, including any unauthorized uses that are not directly in any way related to the online service provision for which the data was originally gathered.
  4. Authorizing the calculation of data value while at the same time encouraging the facilitation, enabling small or large scale businesses to adopt methodologies that reflect the different business model.

The problem with this bill is that “there is nothing to stop the companies from doing the evaluation and undervaluing the asset“, he further stated. Consumers, on the other hand, have embraced the idea, saying:

“nothing that concerns about privacy and the power of big tech is higher than ever right now.”

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