Mapping User-Privacy Environments in Mobile-Based Platforms

Introduction Advertisers have a new imperative in targeted mobile advertising as information transaction is migrating to mobile devices and people are increasingly relying on smart phones and other mobile platforms to participate in their civic, health and political lives. Questions arise: What is the current policy parameter in regards to the protection of personal data in complex mobile-based digital ecosystems? Is there any disjuncture between the current statutory privacy protection and the public understanding and expectations of digital identities in mobile environments? Policy Background and Objective of This Study In 1998, Congress responded to the privacy concern about the collection of online personal data on websites that target children under age 13 when it ordered the Federal Trade Commission to regulate data collection - Children’s Online Privacy Protection Act. The Commission developed rules to ensure that websites obtain parents’ permission before the sites request information from children. The FTC in its recent 2012 update attempted to encompass the regulation of third party mobile apps. Despite some implication of the COPPA for mobile apps, however, current legal protection for personal identities and location related application is limited as the details of possible legislations remain unclear. The question remains to the extent to which the much needed public understanding of mobile related privacy issues impacts the viability of the FTC revision of the decade-old COPPA. This paper addresses the two related issues. First, this study aims to comprehend the current policy status in the US concerning virtual data flow in mobile-based platforms. Second, we analyze young adult users’ privacy behavior and perceptions in their uses of mobile-based digital devices. In the first part, the key is to delineate the current policy landscape in order to develop a more comprehensive understanding of data practices in the mobile advertising marketplace. In the second part, the focus is on user perceptions to detect the presence or absence of congruence between policy supply and public demand in mobile privacy, as indicated by users’ behavior and perceptions. Combined, this study aims to tackle and advance a conceptual mapping of the mobile-based data ecosystems and suggest concrete policy remedies. Methodology and Data This study utilizes a mixed method. First, policy-industry analysis draws upon the combination of historical and policy insights. For this, a comprehensive data archive was constructed from the various policy and industry resources: (1) trade magazines, (2) the NGOs, and (3) the US government (mainly, the FTC). In addition, the analysis partly relies on secondary data present in policy reports. Second, for users’ understanding/perceptions, the analysis uses in depth interview and observation data collected from the first quarter of 2011 through the second quarter of 2012 for 60 young adult mobile users. Using a series of hierarchical regression analyses, our key result is that higher access for basic mobile use/service are not associated with higher levels of privacy skills, controlling for gender, household income, age of the user, parental education, and other factors. There was no significant difference in mobile Internet access for privacy skills, while users of low income families tend to exercise lower levels of skills. Contribution and Expected Impact Implications of the findings will be drawn about mobile advertising practices in light of existing privacy protection contours. Foremost, current regulatory policy of personal data assumes that users possess a strong understanding of surveillance practices common to the mobile, Internet, and the like. This assumption may be flawed. Second, the findings will help policymakers identify the locus of digital divide in the context of mobile privacy and to devise remedies that are grounded upon not only one of access, but also of privacy skill. The effective intervention for increased quality of mobile use is recommended of a policy tool in combination with a better interface in mobile platforms.