Personal data value: users are ready to give it up for money

The consumer watchdog Which? has attempted to discover the right personal data value. And they did this to regulate the data-collection practices of tech giants such as Google and Facebook. The British company has repeatedly argued that people are uncomfortable about the amount of data collected by these companies. Big tech companies collect the data from online activities and devices in the home.

Clear personal data pricing

Now, Which? commissioned a 111-page report – Value of the Choice Requirement Remedy. This estimates how much money people would pay Facebook and Google, in order to regain control over their data. Thus, UK users of Facebook and Google would pay £1.09 every month. So, together they would pay about £1.14bn for a full year.

Previously, many user refused to give out their data for targeted ads. However, a new study found that people are more likely to hand over their information if they’re given a reward. For example, a voucher from Amazon. So, more than 8 out of 10 respondents agreed to share their data if the companies reward them.

The survey found that consumers are more likely to choose adverts if the reward is large. In other words, if the financial reward is worth it, they are more likely to accept data collection. The survey also found that the personal data value per Facebook/ Google user is £4.03 a month.

Important data for the Digital Markets Unit

The publication of this research comes before the UK’s competition watchdog’s deadline for its new Digital Markets Unit (DMU).

The government recently unveiled their consultation on the regulation of the digital industry. It was introduced as a precursor for future regulations. So, the consultation aims to promote competition and innovation, while also protecting consumers and businesses.

A key proposal is to provide DMU with the power to “suspend, block, or reverse decisions by tech giants.” They would be fined 10% of their turnover for serious breaches.

Rocio Concha, director of Policy and Advocacy at Which?, said that reforming competition regulations will lead to a more competitive tech sector. Moreover, this would bring benefit to consumers. Thus, he mentioned that the industry will work better for the people, giving them control over their data and privacy.

So, Concha thinks that “It will be crucial that the government provides the new Digital Markets Unit with the necessary tools.”

Facebook said that they never use sensitive personal data for ad targeting.

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