Data ownership: Users access to data control in an information age

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  Quantumrun Foresight
• January 27, 2022

Insight summary

The digital era is characterized by a growing debate over data ownership, with consumers demanding control over their data and tech companies relying on this data for their operations. The value of data is recognized by businesses, hackers, and credit score firms alike, leading to concerns about data usage, privacy, and portability. In response, there are calls for regulations granting customers direct ownership of their data, increased digital literacy education, and private sector investment in cyber defenses, all aimed at creating a more secure and ethical digital environment.

Data ownership context

The digital age is driven by data. However, who owns this data - the tech companies that collect and mine data or the consumers who generate data these companies collect? The debate over data ownership is gaining greater awareness. Users are demanding control of their data while global tech companies need this data to operate. 

Online data may be described as a byproduct of a consumer’s online activities. Data ownership is a term that describes who owns data, has the right to sell data, market data, and use product data. Data is valuable. Companies conduct everyday business by collecting, storing, manipulating, using, and selling data.

For example, credit score firms operate their businesses using data generated from people’s financial activities and employment histories. The utility of data is a primary reason why skilled hackers generate millions annually from stealing and selling personal data. Meanwhile, the concept of data ownership defines how valuable this data can be. A study by IBM indicated that 81 percent of consumers responded that they had increased concerns about the ways their data is used online. 

Disruptive impact

The data of one person may be of value to another. Virtually all companies deal with certain amounts of data. Data can be monetized; it may even be considered as the new currency of the internet age. Data can be sold directly for money even before any analytics or manipulation is performed. However, the real value of data is seen through data analytics. Data marketability allows data brokers to bring their data to the market. But the considerations of data ownership may restrict or require certain permissions before data marketing or selling is done.

Businesses are already making attempts to redefine the ground rules around data usage before user concerns and legislative actions bring forth regulations. For example, Facebook created a whitepaper on data portability. Google introduced a feature that allows user to download their data. However, a major challenge is the impracticality of data portability for users who desire a faster way to switch between platforms. While this is still an issue, Apple, Twitter, Microsoft, Google, and Facebook have introduced a collective initiative, the Data Transfer Project, for easy movement of data between platforms.

It may be possible to create regulations that give customers direct ownership of their data. Internet observers believe that a possible way to fix the issues of data ownership is via a comprehensive privacy bill or meaningful, large-scale Gig Tech regulation. One of the most comprehensive legislative measures so far is the European General Data Protection Regulation (GDPR) published in 2016. The GDPR provides portable data, which gives citizens greater digital agency. In January 2020, California created the California Consumer Privacy Act (CCPA). The CCPA provides residents with the right to know what data about them has been collected, the right to delete the data, and stop the sale of their data.

Implications of data ownership

Wider implications of data ownership may include:

• The public demanding and government mandating that individuals have greater control over how private data is collected and used by private and public organizations.
• The creation of increasingly modernized regulations and control measures to improve data ethics in the private sector.
• Increased educational materials taught in schools and online media educating the public about how their data is created, stored, and used online.
• Increased private sector investment in developing cyber defenses that can effectively provide data privacy. These investments will see particular adoption in the financial services and healthcare industries.
• An increased emphasis on digital literacy education, resulting in a society that is more informed and capable of protecting their personal information online.
• The need for massive data centers decreasing if individuals have more control over their data.
• Consumers boycotting companies and services that do not allow them to control how their data is used.

Question to consider

• Do you think ideas such as a public data bank regulated by the government could be a solution to data ownership?
• Do you think it is possible to empower each individual with their data to bypass gatekeepers such as credit rating agencies?