Are We Hurting Innovation?

BY MICHAEL J. QUARANTA

IF YOU JOINED ME AT A SHOPPING MALL and we listened in on customers making purchases, we are likely to hear a clerk ask this question, “Would you like to open an account with us, receive ten percent off on your purchases today and sale information before everyone else?” I’ve taken advantage of those offers and many have done similarly. People are privacy pragmatists and have few issues sharing information with businesses provided they get something of value in exchange.

Most consumers cannot describe the Fair Credit Reporting Act, the Gramm, Leach Bliley Act, HIPAA, the DPPA, and a host of other federal and state laws that safeguard sensitive data. They don’t spend time worrying about data collection and sharing practices provided they have options, and the collectors are responsible data stewards.

House Bill 262 was recently introduced and would require all businesses that sell data to pay a fee to the State as well as submit a summary of those lengthy privacy notices on to a state website for consumers to review. The proposal also puts into law a private right of action that allows every consumer the option to sue a company—large or small—if they think information about them was misused.

Studies have shown that consumers rarely look over privacy notices. I also predict the likelihood of people navigating to a state website for this information is even more doubtful. Personally, if I read online about a company and data practices I don’t like, I’ll find a competitor and spend my money elsewhere.

Today more than ever, we learn about issues and events from around the world only moments after they’ve occurred. Anybody watch the Oscars? Most everyone understands that if you bank or shop in-person or online, use internet search engines, or post opinions or pictures on social media, none of that is done without a small measure of risk. Companies have heavily invested in resources to protect customers and data while looking for ways to add value or a customized experience. This is how innovation occurs.

This bill does not obligate the public sector to do what is expected of the business community. I have no option but to give up information to a state or local government if I would like a license to drive, practice law, cut hair, fish, register my dog, or visit a state park. The public sector collects and sells more information about me than any other entity. No options, no disclosures, no best practices, and no information about selling data. To be fair, the Division of Motor Vehicles does offer some customer options, but only because a federal law instructed them to do so.

The Delaware Department of Justice is an enforcement agency. They have no record of consumers complaining or demonstrating harm from data practices. A better option would be to engage with data sellers who do not disclose what they collect, sell, or use. The Department has the ability to do this now, and that’s a better place to start.

The purpose of these articles is to provide the platform for two perspectives to be shared. The views are that of the authors. View the other perspective: https://issuu.com/destatechamber/docs/delaware_business_may_june_2022_7179/s/15635659

Michael J. Quaranta is president of the Delaware State Chamber of Commerce.