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Expanding on this idea.
Look, not long ago, credit card firms robbed consumers by burying rates and terms in long contracts that people don't read or understand. We passed a bunch of legislation to stop these abuses. TIL, etc.
Today, the new valuable property asset is data. 1/
Look, not long ago, credit card firms robbed consumers by burying rates and terms in long contracts that people don't read or understand. We passed a bunch of legislation to stop these abuses. TIL, etc.
Today, the new valuable property asset is data. 1/
Now we have the same trick, new industry.
Exploding growth and wealth in a few digital firms is a result of those firms playing the same hand: bury data costs and terms in long contracts that people don't read or understand. 2/
Exploding growth and wealth in a few digital firms is a result of those firms playing the same hand: bury data costs and terms in long contracts that people don't read or understand. 2/
While we wait for our federal government to take action, the private market has been trying to close the gap.
Apple, for example, trying to force apps to properly disclose data costs.
Here is an example of how Apple updates will compare data costs of messaging apps /3
Apple, for example, trying to force apps to properly disclose data costs.
Here is an example of how Apple updates will compare data costs of messaging apps /3
No surprise then that companies that have the highest data costs are trying hard to stop Apple from disclosing costs to consumers.
FB recently ran a bunch of newspaper ads trying to stop Apple from disclosing costs ... /4 https://www.theverge.com/2020/12/16/22178068/facebook-apple-newspaper-ads-ios-privacy-changes
FB recently ran a bunch of newspaper ads trying to stop Apple from disclosing costs ... /4 https://www.theverge.com/2020/12/16/22178068/facebook-apple-newspaper-ads-ios-privacy-changes
But hiding costs allows these companies to inflate consumer demand curves -- way beyond what they normally would be.
This is not economic efficiency. These are artificial demand bubbles. These bubbles are not good for consumers or our economy. /5
This is not economic efficiency. These are artificial demand bubbles. These bubbles are not good for consumers or our economy. /5
This is not a nothing problem because it's just "privacy".
Privacy is data.
Data is the new oil. /6 https://www.economist.com/leaders/2017/05/06/the-worlds-most-valuable-resource-is-no-longer-oil-but-data
Privacy is data.
Data is the new oil. /6 https://www.economist.com/leaders/2017/05/06/the-worlds-most-valuable-resource-is-no-longer-oil-but-data
Solution is to force companies to adequately disclose data costs so that the free market can work.
We need more Apple-like disclosures.
Policymakers can lean on how they solved similar problems in credit and banking markets. In the U.S., TIL, Fair Credit Reporting. /7
We need more Apple-like disclosures.
Policymakers can lean on how they solved similar problems in credit and banking markets. In the U.S., TIL, Fair Credit Reporting. /7
This is very important in order to stop a wholesale wealth transfer from consumers to a few firms.
The wealth transfer exacerbates inequality problems.
The good news is that people already own their data. We just need new rules to make sure data works like price.
/end
The wealth transfer exacerbates inequality problems.
The good news is that people already own their data. We just need new rules to make sure data works like price.
/end
