Senators Mark Warner (D-Va.) and Josh Hawley (R-Mo.) will introduce legislation on Monday to require Facebook, Google, Amazon and other major platforms to disclose the value of their users' data, as first reported Sunday evening on "Axios on HBO."
Why it matters: Our personal data is arguably our most valuable asset in the digital age, but internet users don't have any way of knowing how much their data is actually worth.
The big picture: Two decades ago, consumers made a bargain we traded our data in exchange for using "free" sites like Facebook, Instagram, Google, YouTube and Twitter. Warner says he wants consumers to be more informed about the real value of what they give up in the form of, for example, location data, relationship status, data about the apps we use, our age, gender and lifestyle.
Between the lines: The point of the bill is to help consumers understand what they may be giving up when they click on "I agree" and hold tech companies to a higher level of transparency.
Individuals wouldn't get any sort of pay-out for the use of their data. The value of an individual's data is the subject of some debate. Warner says it's probably around $5 a month, while other estimates put it around $20 a month. It could be more, depending on the type of data collected.
The bill would require companies that generate material revenue from data collection or processing and have more than 100 million monthly users to disclose to users the types of data collected, how it is used, and to provide an assessment of the value of that data once every 90 days. It would require these companies to disclose annually to the Securities and Exchange Commission the aggregate value of all of their users' data. The report would have to include details of contracts with third parties for data collection, how revenue is generated by user data, and measures taken to protect that data. The bill would direct the SEC to develop methods for calculating the value of user data, accounting for varying uses, sectors, and business models. Companies must provide a setting or tool for users to delete all or part of their data.
Sounds like a win for consumers. ---
"Even if that's not the case, I would prefer this bill fail, since I'd rather see a Democrat get this win instead" - Doom_Art