What price privacy?

Richard Thomas, the Information Commissioner, says there is a widespread market in confidential personal information and that many of the ultimate buyers are journalists or other organisations such as finance companies and local authorities (see the Times today). His report, ‘What price privacy?’, out today, supports government plans to increase the penalties for misuse of information to align with proposed sentences for misuse of data of the national identity register.  The move to increase the penalities in law is a necessary step to try to disincentivise and punish the black market in personal data. From a corporate marketing perspective, it is interesting to see the commissioner name and shame a number of newspapers. The deterrent effective of negative publicity on long term corporate reputation has long been recognized as a tool in changing behaviour by this Government and others (not least the media themselves).  So, it will be interesting to see if this approach from the ICO continues and what impact it will have in the boardroom where corporate reputation is managed and policy towards issues of data protection and use are ultimately set.  

What will also be critical is how consumer attitudes are impacted by this report.  In our view, there is clearly a growing body of consumers who are ‘identity literate’. These people recongize the importance and value of their personal data and who have ceased believing they can rely on public or private sector organisations to safe guard and manage their data. This constituency is seeking greater personal control of their information (or their identity depending on how they define the issue) and will seek greater accountability from corporations and the State on how they use their data.  As we reach the year end, here’s a quick prophecy….2007 will see a flotilla of new companies launching dedicated to supplying this customer base with the tools to protect and control their personal data.  We’ll also see established companies refine their approach substantially.  Communications, marketing and customer service functions will come under more explicit public pressure to give customers greater assurance about how they protect data and demand greater transparency about the use of it. Glasshouse believes some corporations will see big risk management and corporate marketing advanatages in taking a proactive lead on the issue.  Others, of course, will not.