how companies use personal data against people - Cracked Labs

Review, Vol. 117, 2017; University of Washington School of Law Research Paper No. 2017-08. Available at: https://ssrn.com/abstract=2929643. 179 Christl (2017), p. 40-53, 75-77. 180 Christl and Spiekermann (2016), p.79. 181 Ngai, E. W. T., Li Xiu, and D. C. K. Chau (2009): Review: Application of data mining techniques ...
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Wolfie Christl

HOW COMPANIES USE PERSONAL DATA AGAINST PEOPLE Automated Disadvantage, Personalized Persuasion, and the Societal Ramifications of the Commercial Use of Personal Information

WORKING PAPER BY CRACKED LABS Vienna, October 2017 Author: Wolfie Christl Contributors: Katharina Kopp, Patrick Urs Riechert

Wolfie Christl

How Companies Use Personal Data Against People Automated disadvantage, personalized persuasion, and the societal ramifications of the commercial use of personal information. Working paper by Cracked Labs, Vienna, October 2017 © 2017 Cracked Labs CC BY-SA 4.0 Author: Wolfie Christl Contributors: Katharina Kopp, Patrick Urs Riechert Cover illustration: Pascale Osterwalder Every effort has been made to ensure the accuracy of the texts in this report. The author and the publisher accept no liability in the case of eventual errors. Cracked Lab – Institute for Critical Digital Culture Annagasse 8/1/8, 1010 Vienna, Austria http://crackedlabs.org Wolfie Christl is a digital rights activist, technologist, researcher, writer and educator, based in Vienna http://twitter.com/WolfieChristl http://wolfie.crackedlabs.org

The production of this report was supported by the Open Society Foundations.

Table of Contents

Abstract...................................................................................................................4 Introduction............................................................................................................ 5 1. (De)centralized mass dataveillance ...............................................................8 2. Personal data industries ................................................................................ 11 2.1 Credit and risk assessment .................................................................................................... 11 2.2 Marketing and customer data ............................................................................................... 11 2.3 Large platforms and centralized players ............................................................................ 12 2.4 Key developments in recent years........................................................................................ 14

3. When personal data is systematically used against people ..................... 17 3.1 Automated decisions based on personal data..................................................................17 Example areas and types of application................................................................................. 17 Deciding about people based on their data............................................................................20 Kafkaesque experiences and chilling effects ....................................................................... 23 Accurately discriminating for profit ...................................................................................... 26

3.2 Data-driven persuasion and personalized disadvantage ...................................... 29 Persuasive marketing, instant personalization and testing ............................................ 32 Exploiting cognitive biases and data to influence behavior ............................................. 34 Predictive marketing and personalized pricing .................................................................. 36 Election campaigns and voter targeting ................................................................................ 38 Practical use in centralized and decentralized environments ........................................ 39 Markets for behavioral control? .............................................................................................. 40

3.3 Implications for individuals, groups of people, and society ................................. 41

4. Conclusion ........................................................................................................ 44 Addendum – A few remarks on how t