Facebook wants your data, and magic legalese won't keep it away

You can pray to the gods of law, but they're selling your information regardless.

Facebook has long been a big player in the fight over privacy. Now, its latest proposed changes to its terms of service have been met with dismay from Facebook users and privacy advocacy groups alike.

Released on 21 November, the proposed changes would remove the "Who can send you Facebook messages” mechanism from the site’s privacy options, stop the system that allowed users to vote on changes to policy, and combine Facebook’s user data with that collected by Instagram, a photo-sharing app that the company purchased in April 2012.

In reaction to the proposals, two US campaign groups (the Electronic Privacy Information Center and the Center for Digital Democracy) sent a letter on the 27 November (pdf) addressed to CEO Mark Zuckerberg, condemning the company’s actions. The letter notes that the changes could “raise privacy risks for users”, “may be contrary to the law”, and are likely to “increase the amount of spam that users receive”. Facebook has so far declined to comment on these criticisms.

Of the proposed changes, the amendment that will have the most impact on users is the company’s decision to pool personal information between Instagram and Facebook. Previously such data was “siloed”, meaning that engineers and marketers working at one couldn’t access information from the other, even if it was about the same person. Under the new policy such data would be compiled into a single unified profile, accessible to advertisers on either site.

This change casts the $1bn Facebook paid for Instagram, a price that many thought was too much, in a new light. Facebook will be collecting geolocation data, a valuable metric for marketers, from its new subsidiary. Users of the app who answered "yes" to the question "Can Instagram use your location?" have been tagging each picture they take with their precise coordinates; the changes to the terms of service allow this data to be synced with individuals’ Facebook profile, even if the user turned off geotagging on that site.

This integration would a boon to advertisers, as data about where you live allows them to guess about other aspects your life, like how much money you make and what you are likely to buy. And this exchange of information works both ways - Instagram ads that had previously been targeted to individuals using only rough geographical data can now be further "personalised" using details from Facebook. This new system makes perfect economic sense for the company, even if it does directly contravene a previous commitment Zuckerberg had made to “building and growing Instagram independently”.

It is important to note that Facebook is not alone in this more-the-merrier approach to your personal information. In January 2012 Google also changed its privacy policy so that it could aggregate data that had been "siloed" in separate services, creating unified user profiles with information culled from Gmail, YouTube, and Google+. Facebook is not unusually mercantile in its proposed policy changes; it is merely following the crowd.

The changes have also worried Facebook’s own users, with many reacting by updating their statuses with a bizarre "privacy notice"; three copy-and-pasted paragraphs that supposedly safeguard one’s personal data “under the protection of copyright laws”. Facebook has already posted a statement refuting the meme, and Snopes have also addressed the issue, pointing out that short of leaving the site or “bilaterally [negotiating] a modified policy with Facebook” (please do try), there is no way of altering the terms and policies you have already agreed to. Fortunately for users these agreements never gave away "copyright" protection in the first place.

The cargo-cult legalese of this meme is entertaining in itself (one variation I saw ended with the arcane incantation of “Notice to Agent is Notice to Principal. Notice to Principal is Notice to Agent”), but it also shows an ingrained misunderstanding of how privacy policy on the internet functions. The public’s reaction to these sorts of incidents is characterized by a sort of suspicious ignorance (we don’t know what they’re up to, we just don’t trust ‘em), accompanied by the understandable but mistaken belief that as customers, we deserve to be listened to.

Facebook has marketed itself as a benevolent facilitator of community and friendship for so long that its customers forget that it is still a business, intent on turning a profit. The proposed policy changes are a sharp reminder of the truth, with all of them affirming the relentless logic of the bottom line: that is, the creation of rich packages of data (‘people’) that can be sold on to advertisers. And if some people are still coming to terms with this realisation that Facebook is no longer all about helping us to "connect and share with the people in our life", then I can see why the promises of a fix-all copy and paste spell are attractive. Unfortunately, they just don’t work.

Facebook! Photograph: Facebook

James Vincent is a journalist and writer. He is interested in technology's impact on society.

Photo: Getty Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR