Back to News & Commentary

Beware the Tech Industry鈥檚 Latest Privacy Trojan Horse

A doctor using a tablet
A doctor using a tablet
Chad Marlow,
Senior Policy Counsel,
老澳门开奖结果
Share This Page
March 18, 2019

Did you hear the story about the do-gooder tech company that is pushing new state 鈥減rivacy鈥 bills across the nation?

The pitch by that company, 鈥 which is so effective its Oregon bill was introduced with more than co-sponsors 鈥 is that patients鈥 health information is being sold for big money without their consent and without providing them any compensation. The solution these bills propose is to prohibit such information from being sold without patients鈥 permission and without giving them a cut of the profits when their information is sold. Sounds like a big win for privacy and consumers.

Only it鈥檚 not. Beware the tech industry鈥檚 latest privacy Trojan Horse.

If these bills were purely designed to prevent the sale of patient鈥檚 personal information without their express permission, the 老澳门开奖结果 would wholeheartedly support such 鈥渙pt-in鈥 privacy measures. But that is far from these bills鈥 goal.

Hu-manity.co鈥檚 real goal is to use state legislation to create a new way for data sellers to profit off of consumers鈥 personal information. The current bills being pursued are limited to medical patients, but future iterations are likely to cover a broader range of consumers.

Currently, profits on the sale of patient information are captured when the information is initially sold by a health care provider to a data broker, marketer, or other user and again if the information is resold. While the overall market for personal consumer information, which is to hit $203 billion by 2020, is huge, it is also fairly saturated with existing data mining and selling companies.

Rather than compete with the high volume of companies in the existing market, Hu-manity.co is looking to create a new, less-populated niche from which to generate profits. And that is what is behind the company鈥檚 current multi-state legislative push.

Hu-manity.co鈥檚 strategy is to use legislation to artificially generate a robust market for 鈥渃ustomer information sales agents鈥 who will facilitate 鈥 and profit from 鈥 the sale of patients鈥 medical information. That is why Hu-manity.co鈥檚 , after it mandates patient consent before selling their information, undermines its own privacy provisions by requiring all consent forms notify patients they can 鈥渆lect to receive a share of any remuneration received鈥 from the sale of their information 鈥 an election Hu-manity.co鈥檚 business model is designed to effectuate. And whereas in the past, health care providers could sell patient information directly to data brokers, Hu-manity.co鈥檚 legislation effectively requires that health care providers use companies like itself to complete the transaction.

Turns out the big 鈥淧鈥 in these bills is for 鈥減rofit-shifting鈥 not 鈥減rivacy鈥.

The problem for Hu-manity.co is 鈥減lease help us get rich at the expense of consumers鈥 privacy鈥 is not a great legislative pitch. So the company instead is casting itself as deeply committed to advancing consumer privacy. In a worthy of George Costanza, even the company鈥檚 鈥渉umanity鈥 name, and its framing of their work as addressing a 鈥渉uman rights鈥 issue, suggests the company is a nonprofit or some other type of public-good focused entity. It is not.

Hu-manity.co is a for-profit company that promotes a data-as-property model 鈥 which even calls 鈥渄iscredited鈥 and 鈥渁 privacy nightmare rather than a privacy paradise鈥 鈥 in order to artificially generate market demand and substantial profits through government action.

Hu-manity.co argues that, insofar as patient data is already being sold, its legislation is merely designed to give consumers 鈥渙wnership鈥 of their data and a cut of the profits. But savvy bill readers will note that the proposed laws contain no defined percentage of the profits patients are entitled to, so they could receive mere pennies of Hu-manity.co鈥檚 revenue in return for giving up their privacy.

This lack of transparency and equity is enough to throw these bills鈥 motives into doubt, but there is a much bigger problem. Namely, that they will adversely and disproportionately impact the privacy of the most vulnerable consumers.

It is well-documented that a wealth-based exists when it comes to privacy. Wealthier persons are able to afford encrypted iPhones and private email accounts, while poorer persons must buy less secure Android phones and use free email services like Gmail, whose contents are tracked. Under these proposed bills, wealthier persons will easily be able to say no to selling their private information, while poorer persons, who are struggling to pay their bills, will have a far more difficult time refusing the additional income, even if it is small.

Simply put, these proposed bills do not empower consumers; they take advantage of the most powerless consumers.

All people should be entitled to robust privacy protections, not just the wealthy. The privacy bills the 老澳门开奖结果 supports are the that ensure privacy is protected for all by default; legislatures should certainly enact protections requiring consent before medical information is sold 鈥 but without counterproductive strings attached. Hu-manity.co鈥檚 Trojan Horse bills are designed to create a new market in which companies, like theirs, act as sales agents to underinformed or financially strapped consumers, who the law will enable them to coax into selling their information.

The disturbing fact here is Hu-manity.co鈥檚 misleading sales pitch has been working on lawmakers who have a genuine commitment to privacy and protecting consumers. For those well-meaning elected officials, the 老澳门开奖结果 has a simple message: You are being duped.

Hu-manity.co鈥檚 bills are being rolled out from coast to coast. By its own admission, the company is currently targeting Arizona, California, Georgia, Hawaii, Maryland, Massachusetts, Montana, New Jersey, Oregon, Pennsylvania, and Washington. Other states will likely follow. In each and every state they emerge, these bills must be rejected by legislators.

Learn More 老澳门开奖结果 the Issues on This Page