Privacy Groups Disturbed by California Governor’s Data-Dividend Plan

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Gov Gavin Newsom (D-CA) may have thought he was throwing privacy advocates a bone when he proposed the creation of a “data dividend” during his state of the state address. The notion that Facebook, Google, and other tech platforms should return a portion of the tremendous wealth that they’ve accumulated through the exploitation of their users’ personal data is a popular one. But, though the phrase “data dividend” is a nebulous one, most observers suspect the plan would see consumers receiving a regular payout from the tech platforms in exchange for the use of their personal data for advertising and other profitable purposes. And if that’s the case, privacy groups are already pledging to oppose the proposal. “The phrase ‘data dividend’ is not one that has a clear meaning to us,” said Adam Schwartz, a senior staff attorney with the Electronic Frontier Foundation. “If what he’s talking about is pay-for-privacy, we’re very, very opposed.” While ostensibly a boon for consumers, privacy advocates say a pay-for-privacy model is in fact an insidious way for tech platforms to legitimize and entrench their data-collection practices. That’s true whether companies offer a discount for their services—a scheme that some internet-service providers have tried in recent years—or fork over hard cash to consumers who are willing to waive their privacy rights. “Pay-for-privacy, first of all, means that it’s privacy for the wealthy and no privacy for the rest of us,” said Richard Holober, the executive director of the Consumer Federation of California. “So we’re fundamentally opposed to any scheme that requires someone to pay for privacy or on the flip side, grants some kind of discount or special deal for someone to give up their privacy.”


Privacy Groups Disturbed by California Governor’s Data-Dividend Plan