Fair to the transparent customer
Improper handling of customer data can backfire on companies
Since digital technologies are penetrating more and more areas of life, consumers are leaving data behind at every turn. Data that can be collected and analyzed and that, when put together, form a comprehensive personality profile.
The Internet in particular offers companies unprecedented opportunities to collect data, whether with cookies or online forms that are filled out before an order is placed or as part of a contest. For one-to-one marketing, the new medium seems virtually predestined. If you know your customers, you can address them specifically with personalized mails or on a personalized website.
Seriousness in handling data is rewarded
The collection frenzy of some companies is opposed by consumer organizations in their efforts to ensure optimal data protection. But companies should also be aware that trust-building measures and transparency are extremely important for the future of the company, emphasizes Federal Data Protection Commissioner Odilo Guntern. The seriousness of a company is important for its long-term success.
Wemf's MA Comis 2000 also shows that if a company appears reputable and promises not to pass on data, many Internet users are willing to disclose personal information (see chart). The same is probably true offline.
With the publication of the study "The Transparent Customer" a few days ago, the Center for Technology Assessment in Bern presented a summary of the current state of digital data collection and data evaluation and the resulting dangers.
The authors are four employees of the Zurich planning office Basler & Hofmann and the Institut romand d'éthique of the University of Geneva. The authors received support from the Migros-Genossenschafts-Bund, the data protection commissioner of the canton of Zurich, the NZZ, the Konsumentenforum and the Catholic Media Service, among others.
Transparency in data collection is necessary
The study essentially comes to three conclusions: Swiss data protection laws must be modernized, and data protection must be internationalized due to globalization.
There is an information imbalance between the companies collecting the data and the consumers. The one-sided advantage must be eroded through consumer education and training. The responsibility of customers and consumer organizations is called for here.
Companies must define internal rules for data protection and communicate these clearly to the outside world. The rules should be drawn up by professional associations in collaboration with consumer protection organizations. The data collected must be accessible to the customer, whether at the bank, in the hospital or on the Internet portal.
However, many companies still have a major shortcoming, particularly in the area of transparency. This also applies to the Internet. Many companies still do not provide any information about the use of collected data, and on some websites the disclaimers can only be found after a long search. In general, there is still a great deal of legal uncertainty, especially when it comes to collecting data via the Internet.
Before collecting, consider what the data will be used for
The authors of the study point out that the actual collection of data is not usually a cause for concern. It is only when various data sets of a person are combined that a comprehensive personality profile is created, which can be used in a damaging way under certain circumstances. Linking anonymous data with data that can be assigned to a specific person is particularly sensitive.
Those who want to declare their project with the collected data in an exemplary manner should do so with a longer-term view. Because the declared purpose can no longer be changed without further ado.
Migros' M-Cumulus customer card serves the authors of the study "The Transparent Customer" as an example of the caution required in the subsequent expansion and modification of data evaluations: Currently, the retail giant makes only limited use of Cumulus data, although much more intensive management and the creation of differentiated customer profiles would be possible, the study says. Migros plans to increasingly develop the customer loyalty program into one-to-one marketing. The question here is whether the customer's consent, once given, is still valid if the parameters of data evaluation are changed to this extent. Collecting data without knowing what you are doing with it, just because everyone is doing it, is therefore not necessarily worthwhile.
Six principles for data collectors on the InternetConsumers should be informed in an understandable manner and in an easily recognizable place in the virtual store about applicable legal provisions, purpose, disclosure and viewing options. The security of the collected data must be guaranteed against unauthorized access.
Obtain customers' consent to use the data or pass it on to third parties. Data may only be processed for the purpose specified during procurement.
No tricks when obtaining consent: pre-marked forms can make it appear that the company is trying to dupe the customer.
In addition to basic information such as name, delivery address or e-mail, only optionally ask for further information. "Interrogations" discourage or entice false information.
Customers should be convinced of the benefits of data collection.
Respect data protection laws such as the obligation to notify when transferring data abroad. Personal data may only be transferred abroad if the data subject is not seriously endangered as a result, namely by inadequate data protection laws in the country concerned.
Recommendations of the Federal Data Protection Commissioner and the Council of Europe can be found at edsb.ch/framesd.html (News and Links) and at www.coe.fr/data protection.
How a correct disclaimer could look like is described at cs3hq.oecd.org/scripts/pwv3/pwhome.htm.
I only provide information about myself, applies in %hen it is a serious company 69%
if the data is not shared 55%
to receive offers tailored to me 45%
if the company gives me a serious impression 43%
when I receive interesting information 43%
to receive personalized newsletters 23%
when I get a good return 21%
to receive interesting advertising 21%
to collect points, e.g. Cumulus, Qualifier 19%
to get personalized homepages 17%
I do not provide any information about myself. 11%
Basis: Internet users in German-speaking Switzerland (1,653,000 people) Source: MA Comics 2000, Wemf
