Are Privacy Principles At Odds With Technology Advances?

The majority of privacy frameworks and thinking around the issues of privacy across the globe can be attributed or traced back to the guidelines produced by the OECD (Organization for Economic Cooperation and Development).

The OECD issued a report titled "Recommendations of the Council Concerning Guidelines Governing the Protection of Privacy and Trans-Border Flows of Personal Data" (around 1980) that sought to create a comprehensive data protection system throughout Europe. This report became the foundation of the European Union's Data Protection Directive and many other privacy legislation and approaches across the world.

The OECD's report recommended that seven principles be employed for protecting personal data:

1. Notice - data subjects should be given notice when their data is being collected;
2. Purpose - data should only be used for the purpose stated and not for any other purposes;
3. Consent - data should not be disclosed without the data subject’s consent;
4. Security - collected data should be kept secure from any potential abuses;
5. Disclosure - data subjects should be informed as to who is collecting their data;
6. Access - data subjects should be allowed to access their data and make corrections to any inaccurate data; and
7. Accountability - data subjects should have a method available to them to hold data collectors accountable for following the above principles.

I have been thinking for the past few days about these principles, and the status quo in the technology industry.

Take for example, the principle of Purpose. The current best practice is for companies to gather lots of user data and find creative, and sometimes useful, ways to utilize this data. Typical examples include:

1. A healthcare provider that collects episodic care data on patients, in order to monitor their treatment and ensure continuity of care, utilizing this data to measure the effectiveness of their staff.
   
2. A social network provider using the posts of its users to help a credit rating bureau or bank determine if the user is engaged in fraudulent activity.
3. A search company using user's search data to track the spread of an infectious disease.
4. A daily deals broker using its customers' purchase history as an asset it sells to retailers to optimize their operations and logistics.
   

The common thread in all these scenarios is that all the intended purposes of the collected data are never known and are not specified at the time of collection. This clearly violates the privacy principle of Purpose.
However, it clearly represents best practices in the IT industry today - "Collect as much user data as possible. Claim it as ours. Find ways to monetize it".

Will it ever be possible to adhere to this privacy principle when current business practice operates contrary to it? Probably not.

Will it be possible to change the current business models? I do not know. 

What about the adherence to other privacy principles? Do they face a similar uphill battle?

I would love to hear your thoughts on the matter.
   

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