In: Economics
we read in academic publications, trade journals and newspapers (also watch on TV) that there have been misuses of data collected from the consumers. Companies have began monetizing their data externally for purposes different than those for which the data was initially collected. There is a wide gap exist between 'what consumers views as ethical', and what the company views as ethical. Is this practice (by these companies) considered as 'unethical'? Yes or No? Why? Should we (consumer watch dogs or government agencies) hold these companies accountable for the ethical breach? What can a government do discourage (or minimize) this unethical behavior?
This is true that we read in trade journals, magazines, newspapers and even on the social media platforms about the misusing of data of a customer by the companies. This is mainly seen with the digital handled companies for eg- netflix, facebook, uber, etc.
This practice by companies are absolute unethical. This is against the ethical standards of any company. A customer's personal information if required by the company, is important to keep it secure as it is against a customer's privacy.
Recently, the most popular video- streaming company, Netflix had gone against the customers privacy. It has to settle the case by paying $9million. Last year, Netflix customers had file the suit that ,after opening a new account , the company had copied their personal information and rental history from the accounts which have been closed long before.
Therefore it is very important to file a suit against the company misuses our personal information. We very much hold them accountable for this ethical breach.
There are many laws and acts provided by government to stop the ethical breach
1. The VPPA , the federal video privacy protection act, forbids any rental video companies from disclosing any personal information of a person.
2. The (indian) Information Technology Act, 2000 also ensure the punishment for the cyber criminals and protection to customers.
3. There are many sections under IT Amendment Act, 2008 to protect the privacy of the customers.
Also, customers themselves should be aware of the information they are providing and its relevance. This may help them to avoid the ethival breach situations in future.
Government has many laid rules and laws to act upon such cases and to discourage the misuse of information.