Soon, big tech companies could reveal value of your data
Amid growing data security concerns, US Senators Mark Warner and Josh Hawley have decided to hit the core of big tech companies. The duo has proposed a bill under which tech giants like Google, Facebook, and Twitter would be forced to inform users about the data they collect from the user and its exact value to an advertiser. Here's all about the legislation.
Several companies sell your data to advertisers
In case you don't know, tech/internet companies that don't sell anything directly to you employ your data as the product. They offer free services to collect user information and then sell that data to advertisers so that they could deliver targeted ads and promote various products/services. Facebook, Google, and Twitter are some of the companies that rely on this kind of business model.
Companies hide data value and buyers, says Hawley
"These 'free' products track everything we do so tech companies can sell our information to the highest bidder and use it to target us," Hawley said. "Tech companies do their best to hide how much consumer data is worth and to whom it is sold."
What this bill would mean for these companies
Under the new bill, dubbed Dashboard Act, companies with over 100 million MAUs (monthly active users) would need to disclose every piece of information they collect to customers and regulators. Plus, they would also be required to provide the users with an assessment of this data's value; the value would have to be given from time to time as data stock increases with usage.
Prospects of the bill remain unclear
As of now, there is no parallel legislation for the Dashboard Act, and there is no saying when or if it will come into force. However, the development comes just as members of the US Congress continue to root for a privacy law that would limit the control these tech companies have over user data, and give people the power to oversee their information.
