Internet of Things: A study of Regulatory mechanisms

Privacy as a Fundamental Right in the context of Consumer Data

Data protection is a fundamental right in the present age of consumer goods and Internet of Things.
In a world where humans interact with countless tech products, from a smart home speaker to a
smart thermostat that is controlled by that speaker, from the smartphone in the pocket to book a cab
to posting a picture of their dog, human beings these days are entangled in a yarn ball of consumer
products and services. No matter what service or social media a person signs up for asks for their
personal information and that information is converted into data points and saved on servers and
cloud services from which that data is used for god knows what purpose. In this hindsight, several
questions arise like Is privacy a fundamental right? If yes, what kind of reasonable restrictions
apply? Does privacy as a fundamental right include consumer data? What are the safeguards and
remedial measures attached to consumer data? Is the consumer data sacrosanct and protected in this
age of services and products? For apps and social media platforms which use the consumer as their
product, should they be regulated and if yes, how? Is data encryption a solution or a necessary evil
for the regulators and the government? And lastly, can a consumer opt out of sharing their data? The
paper will be divided into six parts. The first part deals with the basic issues like what is consumer
data, how it is recorded and how the data points are gathered from any online consumer activity,
how any online data is protected from cyber crimes , etc. The second part focuses on some highly
publicised case studies like Cambridge Analytica (early 2018) and FBI v. Apple (2016). The third
part ponders upon the jurisprudential question of whether privacy as a fundamental right include
consumer data (Puttuswamy case). The fourth part throws light on the various modes and
mechanisms of regulation of Apps and Social Media Platforms by various stakeholders like users/
consumers, Apps and Platforms owners and Government. The fifth part deals with a key question
i.e. Is Consumer Data a property of the Consumer or Government or the Companies? The last part
deals with Conclusions, Suggestions and the Way forward.
 The first part deals with the basic issues like what is consumer data, how it is recorded and
how the data points are gathered from any online consumer activity, how any online data is
protected from cyber crimes , etc.

Consumer data is the information trail consumers or customers leave behind as a result of their
Internet use. This data which so times comprises of their personal information, comes from such
sources and channels as social media networks, marketing campaigns, customer service requests,
call; centre communications, online browsing data, mobile applications, purchasing history and
preferences, and more. Companies collect and analyse customer data to attract, engage and retain
their most profitable customers as a part of a broader customer relationship management strategy.
Companies use this information to target relevant advertisements, offers and other products and
services to consumers, as well as provide them with a personalised experience based on individual
preferences. Many companies face challenges in walking the fine line between using consumer data
to enhance the customer experience while also ensuring they do not breach customer trust or
mishandle their personal information, particularly as data privacy and cybersecurity concerns grow.
Technology is changing our concept of privacy. A world without music streaming, binge-watching
shows or using our smart devices to manage our lives isn’t a world many of us would choose to live
in. We have grown accustomed to the ease with which technology enables our lives. Yet, our
reliance on and comfort with technology creates a constant erosion of our privacy — and sometimes
we’re not even aware of the tradeoffs. For example, is it reasonable for consumers to receive a free
service like Facebook in exchange for sharing their data? Ask most consumers and they will say “it
depends.” Are we talking about sharing all; my photos? Who gets them? What about my posts?
Does someone read them or is it a bot scanning for keywords? If yes, what are the keywords used
for anyway?
The real problem is we as consumers are providing billions of data points every second that deliver
an endless amount of fuel for businesses. However, as consumers, the bottom line is that we have to
actually pay for all of the “free services” we know and love. We aren’t paying for all of these “free”
services in the traditional sense of currency, but we are with our data. Social media platforms and
services like Facebook, Instagram, Gmail and Twitter maybe free in the sense that each and every
person no matter who they are can sign up for them by just providing very basic information like
name, email ID, address, phone number or an alternate phone number while they feel that what big
harm could be done. But this is when these services though free for the consumer become a new
commodity for the company. The consumer becomes a source of fresh new data packets that is, data
being gathered from the consumer. Every like, every subscribe and every share equals to a new data
packet. These data packets when brought together form data points on a consumer. These data
points are used to study consumer behaviour, the kid of posts the consumer likes whether it is
political or science, sports or juicy celebrity gossip. Once these services realise what kind of content
a consumer follows, they are shown “similar content because they liked something like this” to
influence their behaviour when they use that service.
There are a lot of people who use this data, but marketers have the opportunities to profit from it
more than anyone else. They’re the ones willing to pay for it, especially when they’re running tests
and control groups to ensure they get the greatest return on investment and ad spend because
leveraging big data for marketing and advertising works.