Study shows that data collection on social networks does not cause significant damage to companies and consumers

Study shows that data collection on social networks does not cause significant damage to companies and consumers

A report by Hadi Houalla, recently published by the Information Technology and Innovation Foundation (ITIF), a non-profit public policy think tank in the USA, has shed important light on the exchange of data for services practiced by large technology platforms. The study was aimed at the US market, but its relevance extends to other countries and markets.

The report aims to demonstrate that targeted advertising, based on user data, enables companies to offer high value-added services to consumers free of charge, boosting the economy. It also notes that restricting the collection of user data by digital platforms will harm consumers and the economy.

The study states that there is no evidence to claim that the collection and processing of user data (target data) to personalize online ads results in concrete harm to consumers, and that such harm is uncommon. It also points out that consumers can take various measures to protect their information (e.g. limiting the information they provide to online services, using mechanisms to limit access to data made available by technological platforms, etc.).

The document also shows that targeted advertising brings numerous benefits: it makes advertising more efficient for both advertisers and consumers; it reduces irrelevant advertising; it helps customers discover new and useful products; it speeds up and facilitates online shopping, among other benefits. Restricting this practice would reduce the efficiency of ads, generating more harm than good for consumers and the economy.

As such, the report believes that the best approach to ensuring the efficient protection of this data is the adoption of comprehensive data protection legislation that balances consumer concerns with the ability of companies to operate efficiently.

The report can be accessed via the link: Big Tech’s Free Online Services Aren’t Costing Consumers Their Privacy

Note: For quick release and cost control, this English version is provided by automated translation without human review.