As this paper reported last week, ministers are considering changes in the law which would allow HM Revenue & Customs (HMRC) to sell taxpayers’ data to third parties.
They are not, however the first to have this idea or to attempt to take advantage of what the World Economic Forum (WEF), of Davos fame, called a new asset type.
So how much is our personal data worth?
The WEF report says that 15bn devices will be connected to the internet by 2015 and 50bn by 2020. The amount of data stored on the internet is predicted to grow exponentially and looks set to be 44 times larger in 2020 than it was in 2009.
It is little surprise that internet revenue has also grown strongly over the last ten years, or that in 2013 it hit $42.8bn in the US.
Internet giants such as Google and Facebook have business models underlined by the use of personal data, but most people would have trouble knowing who exactly has access to the data trail they are generating across the internet.
One viewpoint is that such sharing of information helps economies and improves our own experiences online. The internet is a largely free service, and sharing personal data is the price we pay.
Others are not happy with this situation, claiming that the use of information with consent is a violation of privacy. Should people have the right to choose what to share and to be paid for their own information?
Dutch student Shawn Buckles has tackled the issue head on with his decision to sell his data soul at auction. He received £288 from website The Next Web. He says that the website will use his data to highlight privacy issues at their next conference.
Buckles' data bundle included all sorts of private information - everything from browsing data to email conversations.
A sum like £288 is obviously not to be sniffed at, but can anyone receive such a payoff?
Buckles told us:
I’ve read that a persons’ data goes for under 50 cents at the moment, so I reckon I’ve added lots of value to my data. On the other hand, I’ve sold my most intimate information. I don’t know if there’s any fair amount for that.
Buckles is right: when your data is sold, no one receives that kind of money for it. This is because brands don’t buy individual data, they buy individuals’ data in bundles and that makes it very cheap.
What types of personal data are there?
The data that brands are interested in is roughly divided into three types:
Volunteered data - content created and shared by individuals, such as their social media profiles.
Observed data - captured by recording the actions of individuals, such as location data from using cellphones.
Inferred data - what brands can work out about you from the first two.
The inferred data is the type with real practical value, and the first two, unsurprisingly, don’t cost much; they just help to build a picture of the third.
Personal data calculator
The Financial Times published a calculator allowing you to work out what your stats are likely to be worth as part of a bundle, and it’s unlikely to net you early retirement. According to that, $0.083 is the rough cost of my data as one set in a bundle of 1,000.
I ran through various scenarios (pretending I was a rich CEO or a teacher) and it is hard to find a job and lifestyle that is worth more than one dollar. However, some factors do seem to make a big difference, such as a desire to get fit, medical conditions and a family.
Interestingly, a desire to exercise to lose weight makes about the same difference as having a house - roughly 10 cents.
So is it possible for everyone to eschew the bundle and sell personal data as an individual? This allows companies to get far more accurate details, rather than merely ‘inferred’ information.
Some startups have taken moves to re-appropriate saleable user data such as Handshake and Datacoup. These companies offer ways of cutting out the middleman and selling your data straight to third parties.
You won’t make £288 though. Datacoup will only pay you $8 a month and while Handshake allows you to negotiate with brands wanting to buy your data, it is still in beta so it remains to be seen what money there is to be made there.
What about cutting out these middlemen too? Federico Zannier decided to sell his data for $2 a day using Kickstarter, a crowdfunding website, and easily surpassed his $500 goal.
He managed to make $2,733 but had to share his keystrokes, mouse movements and even provide a screenshot every 30 seconds.
The high prices paid for Buckles and Zannier’s data were likely partially attributable to the novelty factor.
Even if you think $8 a month is better than nothing, before selling your data it is worth taking a look at exactly what companies can glean from it.
German politician Malte Spitz sued to get all the data his provider had on him and it is quite chilling what it revealed.
It was possible to track the Green party member as he travelled to conferences and see when and where he called people or sent a text.
It may not be your soul you’re selling for $8, but you won’t have much privacy left.
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