This paper aims to conduct a critical literature review on the main research question: Does the European General Data Protection Regulation increase consumer's utility by increasing privacy protection?
The paper is structured as follows in chapter 2.1, a systematic framework of the notion of privacy and privacy protection will be described. Afterwards, the paper will study which kind of personal data is collected, data collection technologies such as user log-in information, cookies or IP address, and the usage process of personal data.
Then, in chapter 2.3, the command and control policy is considered a consumer policy instrument to determine how the consumer can benefit from the command and control policy and how the government can set limitations about the level of privacy protection and consumer's welfare. The last chapter 2.4 presents the significant articles of the law European General Data Protection Regulation (EU GDPR) for privacy protection and the consequences for non-compliance with the EU GDPR.
In the main part, the research tries to answer the following questions split in chapters 3.1 and 3.2: How can we reduce privacy concerns? Can a privacy protection law like the EU GDPR lower privacy concerns and protect the welfare of the consumer?
This paper sets out the main arguments for introducing consumers’ privacy concerns, privacy paradox, and consumer's utility regarding consumer welfare to answer the questions as mentioned above. Finally, the paper will summarise the findings and a concluding solution to the research question.
Edward Snowden's disclosures regarding the surveillance practices of the National Security Agency (NSA) and the Facebook-Cambridge Analytica affair, in which data from up to 87 million Facebook users were illegally collected. These both cases were the largest personal data scandal in the past years. The violations of privacy protection create enormous concerns, not only for the affected firms but also for their customers. Depending on the firm, the stolen data can range from relatively harmless information to extremely personal data. Besides that, a breach of privacy rights will cost a lot of money to remediate and do serious harm to a firm's credibility and reputation. These examples have sent alarming signals to governments, firms, consumer policy, and consumers to address the problem of personal processing data and privacy protection.
Table of Contents
1 Introduction
2 Theoretical Foundations
2.1 Definition of privacy and privacy protection
2.2 Personal data collection of consumers and usage process
2.3 Consumer policy instrument: Command and control policy
2.4 Privacy protection law the European General Data Protection Regulation
3 Implications of the privacy protection law the European General Data Protection Regulation
3.1 Consumers´ privacy concerns and privacy paradox
3.2 Consumer´s utility on the European General Data Protection Regulation
4 Conclusion
Research Objectives and Themes
This paper aims to conduct a critical literature review to determine whether the European General Data Protection Regulation (EU GDPR) enhances consumer utility by strengthening privacy protection. It explores the mechanisms through which privacy is threatened in the digital age and assesses how legal interventions and regulatory policy instruments can mitigate privacy concerns and consumer welfare issues.
- Theoretical framework of privacy and data protection concepts.
- Mechanisms of personal data collection and the role of data brokers.
- Analysis of command and control policy as a regulatory instrument.
- The role of the EU GDPR in shaping consumer privacy and market behavior.
- The relationship between privacy concerns, the privacy paradox, and consumer utility.
Excerpt from the Book
2.1 Definition of privacy and privacy protection
Defining privacy is broad and complex. To different people, it means different things. It is closely connected to human dignity, freedom, self-determination. It is related to personal space protection, and mostly used as a right to privacy and how the consumer manages the personal data. It can even be viewed as setting limits between the public and private spheres (Acquisti/Taylor/Wagmann, 2016, p. 445). From the above definition, the paper considers if the right to privacy is really used in privacy protection or is still a problem in the European Union?
This part of privacy is significant because rapid changes in the digital age are challenging privacy protection, and privacy must be reinterpreted and analyzed in the current sense (Dinev, 2014, p. 98). As a policy issue, the notion of privacy inexplicit, and to add to the uncertainty, 'privacy' and 'data protection' have evolved into different fields of research (González Fuster, 2014). This paper uses 'privacy protection' and 'data protection' synonymously, for the sake of simplicity. In the interest of the following chapter the synonymous of the two words makes sense because, the paper investigates the personal data collection and usage process and if the privacy protection legislation EU GDPR is providing the right for privacy protection and managing the personal data on the internet.
Summary of Chapters
1 Introduction: Introduces the growing importance of personal data protection in the wake of major data scandals and outlines the paper's critical literature review approach.
2 Theoretical Foundations: Establishes the definitions of privacy and data protection, describes common data collection methods, explains command and control policies, and introduces the key articles of the EU GDPR.
3 Implications of the privacy protection law the European General Data Protection Regulation: Analyzes the psychological phenomenon of the privacy paradox and evaluates how the EU GDPR influences consumer concerns and overall utility.
4 Conclusion: Synthesizes the findings, confirming that the EU GDPR serves as a vital policy tool to mitigate consumer concerns through transparency and liability.
Keywords
EU GDPR, Privacy Protection, Consumer Utility, Data Privacy, Personal Data, Information Asymmetry, Consumer Policy, Command and Control Policy, Privacy Paradox, Digital Footprint, Data Brokers, Internet of Things, Consumer Welfare, Regulatory Compliance, Online Tracking.
Frequently Asked Questions
What is the core subject of this paper?
The paper examines the effectiveness of the European General Data Protection Regulation (EU GDPR) in enhancing privacy protection and its subsequent impact on consumer utility and welfare in the digital market.
What are the primary thematic fields covered?
Key themes include privacy theory, the mechanics of online data collection (such as cookies and data brokering), regulatory economics, and the psychological aspects of consumer privacy behavior.
What is the main research question?
The study seeks to answer whether the implementation of the European General Data Protection Regulation actually increases consumer utility by strengthening the protection of personal privacy.
Which scientific methodology is employed?
The work follows a critical literature review methodology, synthesizing existing academic research, legal frameworks, and economic theory to evaluate the impact of privacy legislation.
What is addressed in the main body of the work?
The main body transitions from theoretical frameworks to practical implications, detailing how specific GDPR articles function as tools to manage information asymmetry and reduce privacy-related anxiety.
How would you summarize the work in keywords?
The study is characterized by terms such as EU GDPR, Privacy Protection, Consumer Utility, Information Asymmetry, and Privacy Paradox.
How does the author define the 'privacy paradox'?
The privacy paradox refers to the phenomenon where consumers express significant concern about their privacy online but simultaneously continue to willingly disclose personal data in exchange for free web services.
In what way does the EU GDPR influence firm behavior?
The regulation imposes strict liability and potential financial sanctions of up to 4% of annual global sales, which forces firms to prioritize transparency and obtain explicit user consent for data processing.
What role does 'command and control' policy play in this context?
It acts as the primary regulatory instrument, where the government sets specific standards for data handling and disclosure that firms must follow, effectively shifting the burden of responsibility toward data controllers.
Does the paper conclude that the regulation is a success for consumers?
Yes, the paper concludes that consumers who leverage the transparency and rights provided by the EU GDPR to minimize their digital footprint become clear winners in terms of increased utility and privacy protection.
- Citar trabajo
- Anonym (Autor), 2018, The European "General Data Protection Regulation" and the consumer's utility. Impact and consequences, Múnich, GRIN Verlag, https://www.grin.com/document/1022269
