Consumer Data Privacy Research Articles

Consumer private data collection strategies for AI-enabled products

The increasing use of artificial intelligence (AI) to enhance products and services has enabled personalized offerings and smarter functionalities through the analysis of consumer data. However, privacy concerns present significant challenges to the effective utilization and commercialization of AI-enabled products. To address these concerns, firms must carefully navigate consumer data privacy and develop appropriate data collection strategies to support future product intelligence, particularly with AI technologies like ChatGPT. This study examines two primary data collection approaches: the uniform policy strategy and the option menu strategy. A mathematical model is constructed to assess these strategies, considering factors such as information externalities and heterogeneous consumer privacy concerns. By comparing firm profits, consumer surplus, and social welfare under both strategies, the study finds that the option menu strategy becomes optimal when there are considerable differences in privacy concerns across consumer groups or when even smaller differences exist, but consumers place a high value on personalized services. These insights offer guidance to firms and policymakers in formulating appropriate data collection strategies for AI-enabled products.

A Consumer Data Privacy Protection Model Based on Non-Parametric Statistics for Dynamic Data Publishing in e-Commerce Platforms

Objectives: Consumer data privacy on e-commerce platforms is increasingly crucial. This study aims to investigate privacy protection mechanisms, particularly focusing on personal and corporate secrets. It seeks to understand individual perspectives on privacy and preferences for data disclosure. The primary objective is to explore methods for safeguarding personal information while maintaining data integrity. Methods/Analysis: We employ non-parametric statistical techniques to analyze consumer behavior and preferences on e-commerce platforms. This involves examining patterns of data disclosure and identifying sensitive information shared by users. By studying communication dynamics and recording practices, we assess the efficacy of current privacy protection measures. Novelty/Improvement: This study contributes to the understanding of consumer privacy protection by emphasizing the importance of non-parametric statistical methods in e-commerce research. Our findings underscore the need for enhanced privacy measures. We advocate for further research and development of innovative privacy-enhancing technologies to address evolving privacy challenges in online commerce. Findings:Our research highlights the significance of personal privacy concerns in e-commerce settings. We identify a spectrum of privacy attitudes among users, ranging from strict confidentiality to selective disclosure. Furthermore, our analysis reveals potential vulnerabilities in current privacy safeguards, particularly regarding the collection and storage of sensitive data on e-commerce platforms. Doi: 10.28991/HIJ-2024-05-02-013 Full Text: PDF

The Impact of Blockchain on Consumer Data Privacy in Digital Marketing

The Impact of Blockchain on Consumer Data Privacy in Digital Marketing

Legal Framework for consumer Data Protection For Digital Business SMES in Indonesia

Objective: The development of digital business in Indonesia has increased significantly. It is estimated to be more than US$ 77 billion by 2022, an increase of 22% from the previous year. The contribution of 64.2 million MSMEs to Indonesia's GDP was recorded at > 60 per cent. However, the development of information technology and the considerable potential of the digital economy are also accompanied by several negative impacts, including threats to citizens' privacy rights and personal data. However, not an absolute human right, protecting privacy remains crucial in this digital economy era. Method: The study used a seven-step approach. The first is the collection of data from primary and secondary legal materials; the second step is to filter this data based on policies related to data privacy, especially for consumers who conduct digital transactions in the jurisdiction of Indonesia. These policies are then sorted according to the criteria that have been filtered. The on-site policy is then compared to the benchmark policy. This comparison will show the gap between effective regulation and Indonesian legislation on digital business and MSME consumer data privacy. This gap is verified by Indonesian law and legal experts to eliminate false positives. Finally, a proposed set of guidelines was designed based on expert-verified benchmarks and gap policies Result: This is where legal protection is essential for consumers who transact with digital businesses. So that it can protect legal subjects through applicable laws and regulations and forced implementation with a sanction, legal protection Conclusion: Legal protection for consumers, especially consumers who make digital transactions, has been regulated in the Consumer Protection Law. However, this law generally only regulates conventional consumer transactions manually, whereas in trading, there is a meeting between traders and buyers.

The Impact of Artificial Intelligence on the Future Business World

Artificial intelligence (AI) is transforming businesses, altering the industry dynamics, and opening up new possibilities for development and innovation. In fact, AI is also allowing businesses to enhance choices, increase efficiencies, and improve customer experiences because of its capacity to analyze enormous volumes of data, automate processes, and deliver predictive insights. The automation of jobs and procedures is one of AI's most significant effects on business. AI-powered solutions are rapidly being utilized to automate repetitive jobs like data entry, customer support, and inventory management, freeing up humans to concentrate on higher-value tasks that call for creativity, critical thinking, and problem-solving abilities. AI is also transforming how businesses communicate with their customers. AI-powered chatbots and virtual assistants are growing, offering customers 24-hour assistance and customized recommendations. In order to assist businesses better understand their consumers' requirements and preferences, AI is being used to examine customer data and generate insights. This allows businesses to better customize their products and services to their target industry's needs. The emergence of AI has raised questions regarding data security and consumers’ privacy, employment displacement, and AI's ethical application, however. As AI-powered technologies grow more prevalent in the workplace, businesses will have to ensure that their employees have the necessary skills to work alongside them. They also need to make sure that they have procedures in place to preserve the data security and privacy of consumer data. Thus, there will be a large and extensive effect of AI on business in the future. The advantages of AI in terms of boosting productivity, enriching consumer experiences, and encouraging creativity and development are apparent, even though there are some challenges that need to be resolved. The businesses organizations who adopt AI and make plans to take its advantages are likely to prosper in the coming years.

Smart meter data analytics applications for secure, reliable and robust grid system: Survey and future directions

The new power sector scenario has focused on integrating renewable energy sources into the grid and achieving trustworthy consumer-utility-stakeholder relationships using smart meters. Granular consumption data obtained from the data management systems of Advanced Metering Infrastructure helps power utilities build an individual consumer's electricity consumption profile that facilitates better load forecasting, efficient management of demand and supply, and more reliable service. However, different challenges concerned with accessibility of data through different communication layers, such as breaches of privacy of consumer data and security of grid have emerged. Due to this, many customers lose faith in the smart grid. To utilize the full potential of the smart grid system these issues need to be addressed to attain a secure, stable, and reliable grid that brings profit to the utility. This paper provides a comprehensive literature survey to achieve the above-mentioned purposes using data analytics. It also addresses different challenges of using data analytics methods and machine learning applications in mitigating these issues. This study would enable the electric utilities to structure a reliable grid to prevent revenue loss and aid the researchers to recognize the potential and challenges of machine learning techniques in the field of the power sector.

Consumer responses to firm-owned devices in self-service technologies: Insights from a data privacy perspective

While self-service technologies (SSTs) enable customers to produce services such as food ordering, hotel check-in, and retail store checkout on their own, they involve the use of devices that are either firm-owned (e.g., the retailer provides a handheld device for self-checkout) or customer-owned (e.g., a customer uses a personal smartphone for self-checkout). With the increasing relevance of customer-owned devices, the role of firm-owned devices is an open question. Therefore, this study examines the role of devices in SSTs. In a series of six empirical studies and drawing on data privacy theory, we explore consumer responses to firm-owned (vs. customer-owned) devices. The findings reveal that consumers prefer firm-owned devices in SSTs and that their general need for data privacy guides these preferences. The findings also show that the interaction with firm-owned (vs. customer-owned) devices is associated with increasing perceptions of data privacy because consumers feel less vulnerable when interacting with firm-owned devices. However, this effect changes depending on the service firm’s practices of customer data usage (data sensitivity and transparency). These findings add to knowledge about consumer response to SSTs and devices, and thereby unfold how devices are interwoven with consumer data privacy. Practitioners learn how consumers respond to device ownership in SSTs and when firm-owned (vs. customer-owned) devices induce favorable customer responses.

Navigating state data privacy laws: A guide for SEC-registered investment advisers

This paper focuses on prominent issues surrounding state data privacy laws, specifically looking at the California Consumer Privacy Act (CCPA), which was amended and expanded by the California Privacy Rights Act (CPRA), the Colorado Privacy Act (CPA) and the Virginia Consumer Data Privacy Act (VCDPA). Due to the lack of a comprehensive federal privacy law, state data privacy laws have recently raised several issues for Securities and Exchange Commission (SEC)-registered investment advisers as they try to navigate through new markets and new industry practices. As such, this paper addresses the similarities and differences between the CPRA, CPA and VCDPA. The paper also provides compliance guidance for investment advisers to address the varying obligation under these laws.

Consumer Data Protection and Privacy: A Proposal For a New Law and an Independent Agency

From social media to banking and healthcare, online services increasingly pervade the everyday lives of American consumers. Currently, there is no comprehensive federal regulation to ensure personal data privacy and protection, and consumers have no ownership rights over their personal data. There are various information and sector specific privacy laws, enforced by multiple agencies with overlapping jurisdiction. Moreover, without a principal federal law, many states have developed their own data privacy regulations. Not only is this collective scheme ineffective for American consumers, but it is also an inefficient form of government regulation and makes compliance difficult. This Note proposes creating the Consumer Data Privacy and Protection Bureau, an independent agency that would consolidate jurisdiction for efficient and effective regulation through a consumer protection framework. It would be created through a new law, the Data Privacy and Protection Act. In addition to creating the Consumer Data Privacy and Protection Bureau, this baseline, comprehensive federal legislation would provide basic data rights to consumers, and ease compliance for companies in the United States and abroad. With bipartisan support and an increasingly digital society, this type of reform is realistic, necessary, and timely.

FedCPF: An Efficient-Communication Federated Learning Approach for Vehicular Edge Computing in 6G Communication Networks

The sixth-generation network (6G) is expected to achieve a fully connected world, which makes full use of a large amount of sensitive data. Federated Learning (FL) is an emerging distributed computing paradigm. In Vehicular Edge Computing (VEC), FL is used to protect consumer data privacy. However, using FL in VEC will lead to expensive communication overheads, thereby occupying regular communication resources. In the traditional FL, the massive communication rounds before convergence lead to enormous communication costs. Furthermore, in each communication round, many clients upload large quantity model parameters to the parameter server in the uplink communication phase, which increases communication overheads. Moreover, a few straggler links and clients may prolong training time in each round, which will decrease the efficiency of FL and potentially increase the communication costs. In this work, we propose an efficient-communication approach, which consists of three parts, including “Customized”, “Partial”, and “Flexible”, known as FedCPF. FedCPF provides a customized local training strategy for vehicular clients to achieve convergence quickly through a constraint item within fewer communication rounds. Moreover, considering the uplink congestion, we introduce a partial client participation rule to avoid numerous vehicles uploading their updates simultaneously. Besides, regarding the diverse finishing time points of federated training, we present a flexible aggregation policy for valid updates by constraining the upload time. Experimental results show that FedCPF outperforms the traditional FedAVG algorithm in terms of testing accuracy and communication optimization in various FL settings. Compared with the baseline, FedCPF achieves efficient communication with faster convergence speed and improves test accuracy by 6.31% on average. In addition, the average communication optimization rate is improved by 2.15 times.

Thriving in the age of privacy regulation: A first-party data strategy

This paper reviews the recent legislative and policy changes in the area of consumer data privacy and their impact on the effectiveness of the most popular tool for tracking customers — the third-party cookie. With third-party tracking rendered mostly ineffective, the authors present the case for marketers to implement a stronger first-party data strategy to fill the gaps left by these changes. First-party data strategies provide significant advantages over third-party techniques, including broader controls for customer data capture and the ability to generate a deeper understanding of customer behaviour and intent; they are also easier to integrate into the marketing analytic and operational process. Additionally, the authors outline the advantages of a first-party data strategy for implementing real-time identification and tracking of customers — something that third-party strategies cannot deliver. All of this can be achieved while staying in compliance with changing regulations that control the timing and use of customer data. Increasingly, the future of customer digital marketing is private, respectful, in real time and first-party.

Особенности нарушения прав потребителей при интернет-торговле

Introduction: the development of the Internet and e-commerce has largely changed the habits, behaviors, and preferences of consumers. This dynamic and efficient means of providing goods has been able to overcome many of the obstacles inherent in offline trading. This became especially relevant in 2020 and does not lose its relevance at the present time in the situation of the lockdown precedent on a global scale. It is possible to increase the protection of business entities and, first of all, consumers, if there is an effective system of the legal regulation of the sphere under consideration. There is a need for legally established guarantees, an appropriate level of legal regulation, effective measures, methods and means implemented within the framework of monitoring the compliance with the norms of the current legislation. To protect the rights of consumers, respect their legitimate interests, and create a civilized competitive environment, the state must fully establish legal means to ensure the rule of law in the field of online commerce without restricting the freedoms of entrepreneurs. The purpose of the paper is to review the current state of the violations of the rights of participants in economic relations that occur when making online purchases. Methods: in the process of writing the paper, general scientific methods (qualitative and logical analysis, synthesis, induction, deduction, comparison, system approach, retrospective analysis, morphological analysis), and a special method (scenario analysis) were used. Results: the main aspects related to the legal regulation of electronic commercial activity regarding the protection of buyers are considered. It is indicated that when buying through e-commerce, various violations of consumer rights often occur. This is expressed, in many cases, in the discrepancy between the actual condition of the goods provided to the buyer with the information contained on the seller’s website, in the delivery of goods with obvious defects, non-compliance with the requirements of GOST. Conclusions: the protection of the rights of online buyers includes two main aspects. First, it concerns the protection of consumer rights regarding the improper quality of the delivered goods, the specifics of the purchase return, and the funds spent. Secondly, what the world community pays considerable attention to is the legal regulation and protection of consumer data privacy. It is noted that domestic researchers place more emphasis on the first aspect of the problem. It is indicated that the improvement of the legal regulation of e-commerce should be carried out following the global trends in the development of international law in this area.

Privacy Practices of Health Information Technologies: Privacy Policy Risk Assessment Study and Proposed Guidelines

BackgroundAlong with the proliferation of health information technologies (HITs), there is a growing need to understand the potential privacy risks associated with using such tools. Although privacy policies are designed to inform consumers, such policies have consistently been found to be confusing and lack transparency.ObjectiveThis study aims to present consumer preferences for accessing privacy information; develop and apply a privacy policy risk assessment tool to assess whether existing HITs meet the recommended privacy policy standards; and propose guidelines to assist health professionals and service providers with understanding the privacy risks associated with HITs, so that they can confidently promote their safe use as a part of care.MethodsIn phase 1, participatory design workshops were conducted with young people who were attending a participating headspace center, their supportive others, and health professionals and service providers from the centers. The findings were knowledge translated to determine participant preferences for the presentation and availability of privacy information and the functionality required to support its delivery. Phase 2 included the development of the 23-item privacy policy risk assessment tool, which incorporated material from international privacy literature and standards. This tool was then used to assess the privacy policies of 34 apps and e-tools. In phase 3, privacy guidelines, which were derived from learnings from a collaborative consultation process with key stakeholders, were developed to assist health professionals and service providers with understanding the privacy risks associated with incorporating HITs as a part of clinical care.ResultsWhen considering the use of HITs, the participatory design workshop participants indicated that they wanted privacy information to be easily accessible, transparent, and user-friendly to enable them to clearly understand what personal and health information will be collected and how these data will be shared and stored. The privacy policy review revealed consistently poor readability and transparency, which limited the utility of these documents as a source of information. Therefore, to enable informed consent, the privacy guidelines provided ensure that health professionals and consumers are fully aware of the potential for privacy risks in using HITs to support health and well-being.ConclusionsA lack of transparency in privacy policies has the potential to undermine consumers’ ability to trust that the necessary measures are in place to secure and protect the privacy of their personal and health information, thus precluding their willingness to engage with HITs. The application of the privacy guidelines will improve the confidence of health professionals and service providers in the privacy of consumer data, thus enabling them to recommend HITs to provide or support care.

Consumer Data Privacy Protection in Smart Renewable Energy Systems (SRES)

Consumer Data Privacy Protection in Smart Renewable Energy Systems (SRES)

Advertising and Price Competition Under Consumer Data Privacy Choices

Recent privacy regulations and firm policies endow consumers with the choice of whether to allow firms to use their personal data for marketing (and other) purposes. We investigate the impact of consumer data privacy choices on the advertising ecosystem. We consider a scenario with competing horizontally differentiated firms that advertise to heterogeneous consumers, through an ad platform, to be considered by the consumers. If a consumer opts in, she provides an imperfect signal of her type, based on which the ad platform can price ads, and the firms can target ads and prices. Consumers make privacy choices by considering their surplus utility from product consumption. In particular, they consider two countervailing effects of opting-in to allow firms to use their data: (i) opting-in, while weakly increasing the relevance of ads served, exacerbates price discrimination by firms; and (ii) opting-in facilitates firms' inferences about the consumers' types, which intensifies price competition. These effects depend crucially on the consumers' ad exposure histories, which in turn are determined endogenously by the ad platform's ad pricing strategy. Compared to a benchmark where all consumers are opted-in to data sharing, with privacy choices consumers' surpluses are weakly higher, the firms' profits are weakly lower, and the ad platform's profit is either lower or higher depending on the signal accuracy and extent of product differentiation. We examine the robustness and boundaries of our insights by considering extensions and alternative models.

MODEL REGULATION FOR DATA PRIVACY IN THE APPLICATION OF BIOMETRIC SMART CARD

This article discusses the extent to which the use of biometric smart card as a tool to exercise the identification has been increasingly utilized due to its advantages, such as ability to achieve a high level of accuracy, the system cannot be easily duplicated as well as high level of security, since it involves biological characteristics like fingerprints, iris and DNA. Notwithstanding the foregoing, the use of this technology has raised many concerns with regard to the need of privacy data protection. It is due to the fact that biometrics technology as a powerful identifier brings along personal information that can be traced from different sources to be linked together, and also the ability of third parties to access this data in identifiable form and link to other informations and used this information for secondary uses without the consent of data subject. Data privacy is considered as fundamental human rights and has been regulated in a number of international instruments as well as regional instruments and has been incorporated into more than 100 national laws. Countries have now recognized data privacy either as an explicit constitutional rights, or in the form of comprehensive data privacy law. This article will explore data privacy model regulation which is intended to regulate and protect data privacy. This regulatory model combining several approaches in managing data privacy, especially in using biometric smardcard. Firstly, through laws that enforces the principles and international standards. Secondly, through the market approach (market-based solution) which is derived through industry associations to help protect consumer data privacy by applying privacy policy in the form of a statement that the industry will protect consumers' privacy by implementing fair information principles. Third, through technological approach such as PET's (privacy enchasing technology), i.e the techniques for anonymous and pseudo-anonymous payment, communication, and web access. Fourthly, through corporate privacy rules.

Enhancing Data Privacy in Web Service Composition

Background/Objectives: Various types of web services are offered on the internet, which led to increasing the interest in the area of web service composition by utilizing many available web services. Web services will be acting like as interface for providing cross-organizational collaborations on the internet. Methods: To ensure the privacy of consumer data in cross-organizational composition services where, no proper collection, maintenance and delivery of the sensitive data is available. A framework has been proposed in this paper that addresses consumer privacy concerns in composite web services. This framework provides a technique for privacy policy checking between a user and a service provider for compatible privacy policies. Findings: Web services composition environment are highly computerized, vibrant, and diverse in nature. These attributes provide the high level of risk on the communication entities on the internet. Applications: The structure applies to the Hospital Management System, Which involves three entities called a patient, consultant and service providers. The encryption and multi-level of authentication ensure the Privacy of the sensitive data.

Industry Self Regulation of Data Privacy and Security

Industry self-regulation of consumer data privacy and security has been proposed as a flexible alternative and compliment to traditional government regulation. This study analyzes whether different types of existing industry-led standards improve online privacy and security. The paper examines which types of firms join voluntary standards and whether there is a difference in outcomes between trade association memberships (like the Digital Advertising Alliance) and certification programs (like TRUSTe). Results suggest that more trafficked websites are more likely to adopt standards, and that trade association membership does not have an effect on privacy and security performance. There is some evidence that paid certification can hurt subsequent privacy and security. This study also compares website privacy measures and highlights the need for a valid privacy metric.

The big data debate Privacy, Big Data, and the Public Good Frameworks for Engagement Julia Lane, Victoria Stodden, Stefan Bender, and Helen Nissenbaum, Eds. Cambridge University Press, 2014. 342 pp.

The big data debate <b>Privacy, Big Data, and the Public Good Frameworks for Engagement</b> <i>Julia Lane, Victoria Stodden, Stefan Bender, and Helen Nissenbaum, Eds.</i> Cambridge University Press, 2014. 342 pp.

Norm Proselytizers Create a Privacy Entitlement in Cyberspace

This article explores an important development in the informal regulation of online privacy. Privacy norm proselytizers have been the leading contributors toward the recognition by Internet users of a moral entitlement to privacy in cyberspace. This article begins by examining the non-moral social meaning of the original personal data collection practices that emerged at the World Wide Web's inception in the early 1990s. Next, it analyzes methods by which privacy activists endeavored to moralize the social meaning of online data collection. It also emphasizes that other norm entrepreneurs, namely, the Federal Trade Commission and creators of new software privacy solutions, have subsequently supported an entitlement to privacy for reasons less selfless, but no less efficacious, in terms of helping to stimulate demand for increased privacy protections. The article concludes that even though a grundnorm of respect for consumer data privacy has generally emerged in American culture, American society is only at the beginning of the difficult task of incorporating this grundnorm into its social and business practices.