Privacy by Design – The Next Wave:
How to Protect Privacy Globally
Ann Cavoukian, Ph.D.
Information and Privacy Commissioner
Ontario, Canada
International Association of Business Communicators
World Conference, Toronto, Canada
June 7, 2010
Presentation Outline
1. Setting the Stage: Changing the Paradigm
2. SmartPrivacy and Privacy by Design
3. SmartPrivacy is Smart Business
4. Web 2.0: Privacy in the Clouds
5. Online Social Networks
6. Develop A Culture of Privacy
7. Conclusions
Setting the Stage:
Why We Need to
Change the Paradigm
Privacy = Freedom
If Privacy is to Survive,
Things Have to Change
The Future of Privacy:
Change the Paradigm to
Positive-Sum,
NOT
Zero-Sum
Positive-Sum Model
Change the paradigm
from a zero-sum to
a “positive-sum” model:
Create a win-win scenario,
not an either/or
involving unnecessary trade-offs
and false dichotomies
SmartPrivacy
and
Privacy by Design
Smart rivacy
www.smartprivacy.ca
Privacy by Design — “The sine qua non”
Data Security
Fair Information Practices
“SmartPrivacy is the umbrella that offers the complete suite of protections to ensure data privacy. It consists of multiple
measures ranging from regulatory protections
to educationFoundations
and awareness,
but one measure stands out as the sine qua
SmartPrivacy
v1.0
non: Privacy by Design. Dr. Ann Cavoukian, Information & Privacy Commissioner of Ontario, Canada, August 13, 2009.
Privacy by Design: “Build It In”
• I first developed the concept of Privacy by Design in the 90s,
as a response to the growing threats to online privacy that were
beginning to emerge;
• Privacy by Design seeks to build in privacy – up front,
right into the design specifications; into the architecture;
embed privacy into the technology used – bake it in;
• Data minimization is key: minimize the routine collection
and use of personally identifiable information – use encrypted
or coded information whenever possible;
• Use PETs Plus wherever possible: give people maximum
control over their own data.
Privacy by Design:
The Trilogy of Applications
Information Technology
Accountable
Business Practices
Physical Design
& Infrastructure
Privacy by Design:
The 7 Foundational Principles
1. Proactive not Reactive;
Preventative not Remedial
2. Privacy as the Default
3. Privacy Embedded into Design
4. Full Functionality:
Positive-Sum, not Zero-Sum
5. End-to-End Lifecycle Protection
6. Visibility and Transparency
7. Respect for User Privacy
www.ipc.on.ca/images/Resources/7foundationalprinciples.pdf
SmartPrivacy
is Smart Business
The Privacy Dividend
1. The Business Case
2. Personal Information in the
Business Context
3. Creating the Business Case
“In the words of Commissioner
Cavoukian, “The ‘payoff’ to privacyrespecting organisations is ... ultimately,
enduring competitive advantage. In a
world of increasingly savvy and interconnected customers, an organisation’s
approach to privacy may offer precisely the
competitive advantage needed to succeed.”
www.ico.gov.uk/upload/documents/library/data_protection/detailed_specialist_guides/privacy_dividend.pdf
The Bottom Line
Privacy should be viewed as a
business issue, not a
compliance issue
Think strategically and transform privacy into a
competitive business advantage
Consumer Choice and Privacy
• There is a strong competitive advantage for businesses
to invest in good data privacy and security practices;
• “There is a significant portion of the population that is
becoming concerned about identity theft, and it is
influencing their purchasing decisions.”
— Rena Mears, Deloitte & Touche LLP
Costs of a Privacy Breach
• Legal liabilities, class action suits;
• Loss of client confidentiality and trust;
• Diminution of brand and reputation;
• Loss of customers, competitive edge;
• Penalties and fines levied;
• Costs of crisis management, damage control, review
and retrofit of information systems, policies and
procedures.
Good Governance and Privacy:
Board of Directors
IPC Publication:
• Guidance to corporate directors
faced with increasing
responsibilities and expectation
of openness and transparency;
• Privacy among the key issues that
Boards of Directors must address;
• Potential risks if Directors ignore
privacy;
• Great benefits to be reaped if
privacy included in a company’s
business plan.
www.ipc.on.ca/docs/director.pdf
Bottom Line:
It’s All About Trust
“Trust is more important than ever online …
Price does not rule the Web … Trust does.”
— Frederick F. Reichheld,
Loyalty Rules: How Today’s Leaders
Build Lasting Relationships
Consumer Trust:
A Matter of Faith
• According to Symantec’s 2009 Internet Security Report,
less than half (47%) of Canadians have faith that their
personal information is protected while shopping online;
“I think people see that, all over the world, organizations
have had credit card numbers stolen out from
underneath them and they understand that this theft
occurs over the Internet ...”
— Robert Hamilton,
Product Marketing Manager of Symantec Corp.
— www.symantec.com/content/en/us/about/media/pdfs/Symc_ISTrends09_ISSPredictions10.pdf
Ten Reasons for Building
Consumer Trust
1. Avoiding damage to your company’s and/or brand’s
reputation;
2. Avoiding penalization by any existing or pending
laws;
3. Avoiding civil and class-action lawsuits;
4. Maintaining the balance of monitoring the activities
of employees while not harming their morale and
productivity;
5. Ensuring the continuation of valuable business
relationships by ensuring your company measures up
to the privacy standards adopted by strategic partners;
Ten Reasons for Building
Consumer Trust (Cont’d)
6.
Being aware of the privacy laws and customs in other
countries;
7. Gaining the trust and confidence of customers so that they will
not provide you with false information;
8. Dealing with consumers who expect you to treat their personal
information the same way that you would treat your own;
9. Repeat online customers are those that feel assured that
shopping online is secure and that their information is
protected;
10. Gain and maintain an edge over your competitors through
embracing more than just the minimum of laws, regulations
and privacy best practices.
— Ann Cavoukian, Ph.D., Tyler Hamilton, The Privacy Payoff: How Successful
Business Build Consumer Trust, McGraw-Hill Ryerson, 2002, pp. 13-14.
Make Privacy A Core Competency
for Competitive Advantage
Customer benefits:
• Protecting privacy gives customers the reassurance of
knowing what is happening to their personal information;
Hard to imitate:
• Privacy is respected when you have a “culture of privacy”
– we all know how difficult it is to effect culture change;
It can be leveraged widely to many products and markets:
• Respect for privacy attaches to your brand, and therefore,
cuts across product and service lines, just as a reputation
for bad service infects all lines.
Web 2.0:
Privacy
in the Clouds
Identity and Privacy Crisis
Growing ID requirements pose privacy problems:
• Fraud and security concerns are inhibiting confidence,
trust, and the growth of e-commerce, e-government;
• Fears of surveillance and excessive collection, use and
disclosure of identity information by others are also
diminishing confidence and use;
• Lack of individual user empowerment and control
over one’s own personal data is diminishing confidence
and use;
• Function creep, power asymmetries, discrimination,
harm;
Needed: improved user control, data minimization techniques,
architectures of privacy, stronger security, trusted devices and
credible assurances.
Privacy in the Clouds
• The 21st Century
Privacy Challenge;
• Creating a User-Centric
Identity Management
Infrastructure;
• Technology
Building Blocks;
• Call to Action.
www.ipc.on.ca/images/Resources%5Cprivacyintheclouds.pdf
The 21st Century
Privacy Challenge
Power and Promise of Cloud Computing:
• Limitless flexibility;
• Better reliability and security;
• Enhanced collaboration;
• Portability;
• Simpler devices.
The 21st Century
Privacy Challenge (Cont’d)
Cloud computing requires identity services that:
• Are device independent;
• Enable a single sign-on to thousands of online services;
• Allow pseudonyms and multiple discrete (and valid)
identities to protect user privacy;
• Are interoperable, based on open standards, and
available in open source software (to maximize user
choice);
• Enable federated identity management;
• Are transparent and lend themselves to audit.
Cloud Technology Building Blocks
• Open source and proprietary identity software
based on open standards;
• Federated identity;
• Multiple and partial identities;
• Data-centred policies;
• Audit tools.
Online Social Networks
Privacy Remains
a key social norm
www.ipc.on.ca/english/About-Us/Whats-New/Whats-New-Summary/?id=138
But Some Social Practices
are Changing:
• Digital Dumping
• Sexting
• Twiddling
• Pee-Mail
Do Not Underestimate
the Winds of Change …
Do not let
weak privacy practices
damage your Brand
Crawled, Scraped and Spidered
• Social media sites are being crawled, scraped and spidered, and
the personal data they collect is being aggregated and indexed,
made searchable to anyone, for free, on the internet;
•
•
•
•
www.zoominfo.com (Finds People and Companies)
www.snitch.name (Social White pages)
www.spock.com (a.k.a. Intelius People Search)
www.pipl.com (Most comprehensive people search)
• Where is this personal information going?
• Where else is personal data being collected, shared, and used?
NYT: Facebook
– Bold and Controversial Changes
“In December, Facebook made a series of bold and
controversial changes regarding the nature of its users'
privacy on the social networking site. The company once
known for protecting privacy now seemingly wants to
compete with more open social networks like the
microblogging media darling Twitter.”
— The 3 Facebook Settings Every User Should Check Now,
Sarah Perez, New York Times, January 20, 2010.
Power of the Default
The Default Rules:
80% of the time, whatever option
is presented as the default,
that will be the condition that prevails
What to Avoid:
Brand Fatigue …
Brand Backlash …
Damage to your Brand
Develop A
Culture of Privacy
Redirecting Institutional Culture
“A company must challenge all its assumptions about how each task
is handled. It must not be afraid to peel back the layers and examine
itself in a way it has never had to in the past … devoting a
tremendous amount of time and energy to the task.”
— William A. Wheeler, Business Process Engineering: Breakpoint Strategies
for Market Dominance, 1993.
“Organizational learning theorists propose that it is not enough for
leaders to design appropriate organization structures and to make
well-reasoned decisions; instead, organizations must be characterized
at all levels by attentiveness to changing conditions.”
— Dr. Amy C. Edmondson, Professor of Leadership and Management
and Chair of the Doctoral Programs, Harvard Business School.
Building A Culture of Privacy
• A culture of privacy enables sustained collective action
by providing people with a similarity of approach,
outlook, and priorities;
• The importance of privacy must be a message
that comes from the top;
• Privacy must be woven into the fabric of the
day-to-day operations of an organization, with
adequate resources.
Benefits of A
Commitment to Privacy
• Strong organizational image and reputation
as a forward-thinking, progressive leader;
• Enhanced data quality and integrity;
• Savings in terms of time and money (e.g., avoid
lawsuits, avoid requirement to notify individuals
following a privacy breach, etc.).
Weaving Privacy into
Day-to-Day Operations
• On-going privacy training and awareness program (new
staff training; refresher training for existing staff, new
threats to privacy, new technology threats and solutions);
• Policies and procedures for maintaining privacy must be
clearly articulated and individuals must know how to
apply them in the day-to-day work;
• Privacy must form part of the performance standard for
every business that works with personal information.
Global Condemnation by
Privacy Watchdogs
• In April, 2010, Google and other online companies faced
international condemnation from privacy commissioners around
the globe over the way it mishandled the private information of
millions of its users with the roll out of its Google Buzz service;
• The heads of privacy and data protection agencies from ten
countries, issued a joint letter calling on the Web giant and
others to do more to respect the privacy rights of their users;
• The letter stated that international agencies are becoming
“increasingly concerned” that Google and other online companies
are forgetting the privacy rights of Internet users when rolling out
new technologies and services;
— Matt Hartley, Canwest News Service, April 20, 2010
Global Condemnation by
Privacy Watchdogs (Cont’d)
"We therefore call on you, like all organizations
entrusted with people's personal information, to
incorporate fundamental privacy principles directly
into the design of new online services:"
• Ensuring the service has easy to understand privacy controls;
• Default settings that better protect privacy and the ability to
protect all personal data;
• Offering users an easy way to delete their accounts quickly;
• Collecting only the minimum amount of personal information
necessary;
• Providing clear and unambiguous information about how a
user's personal information will be used.
Privacy by Design …
or
Privacy by Disaster?
… You decide
Conclusions
• If you develop a trusted business relationship with your customers, they will
provide you with a steady stream of information – enhancing communication
opportunities;
• It’s all about trust – when personal information is involved, you build consumer
confidence and trust by strongly protecting your customers’ privacy;
• By protecting privacy, and communicating that clearly to your customers, it will
give them a comfort level to communicate freely with you, without fear of their
information being indiscriminately disclosed – a true “win/win;”
• Lead with Privacy by Design – embed privacy into the design specifications of
information technologies, accountable business practices and operations;
• Take it a step further – change the paradigm from “zero-sum” to “positive sum,”
where both privacy and business interests can be delivered, thereby raising the
overall level of protection and functionality.
How to Contact Us
Ann Cavoukian, Ph.D.
Information & Privacy Commissioner of Ontario
2 Bloor Street East, Suite 1400
Toronto, Ontario, Canada
M4W 1A8
Phone:
Web:
E-mail:
(416) 326-3948 / 1-800-387-0073
www.ipc.on.ca
[email protected]
For more information on Privacy by Design, please visit:
www.privacybydesign.ca