Data Privacy: The New Digital Oil Crisis

In today's digital landscape, every app and device seems more interested in your data than in your family. As Pablo F. Iglesias, CEO of the online reputation consultancy CyberBrainers, notes, "Data is the oil of the digital world." Among the 20 most valuable companies globally, 19 derive their worth primarily from optimal data management.

However, data alone holds little value; it is when processed that it transforms into highly valuable information. The collection of data has become commonplace, with estimates suggesting that by 2025, over 20 billion devices will be connected to the Internet, equipped with sensors and software that track user behavior, preferences, and habits.

Juan Luis Moreno, Partner & CEO of The Valley, raises a critical concern: "Often, this information is shared or sold to third parties for market research or commercial development, increasing risks of misuse." A notable example involves Xiaomi, whose app not only requests audio recording but also connects to trackers from Facebook and TikTok. Aigostar also shares personal data with servers in China, often buried in fine print.

Everyday devices like fryers and robotic vacuums now have built-in trackers that collect usage data. The question arises: how necessary is it for a fryer to know how often you use it? While a mapping app may justifiably request geolocation data, a flashlight app asking for the same raises eyebrows.

Where do we draw the line? The boundary between useful data collection and invasion of privacy is increasingly blurred. Companies often justify extensive data collection as a means to enhance products or services, yet many consumers feel uneasy about the amount of information requested and lack of transparency regarding its use.

Experts suggest that some companies aim to monetize this data, leading to the question: is it unlawful to gather so much information? In Europe, the General Data Protection Regulation (GDPR) imposes stringent rules on handling personal data, requiring companies to have legitimate reasons for data collection and to obtain explicit user consent.

Despite these regulations, many still find ways to circumvent compliance. A study by Privacy International revealed that many apps fail to adhere to privacy and data protection norms.

So, what can users do? Should they accept terms without question? The short answer is no. Users should critically evaluate privacy policies accompanying new apps or devices. Taking at least five minutes to read and understand what they are consenting to is crucial.

Experts emphasize the importance of consumers being aware of what data they share and with whom. If an app requests more information than necessary, users should question the need and investigate further.

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