What does the WhatsApp saga tell us about privacy in 2021?
Public trust is steadily declining in the tech sector; WhatsApp’s latest ordeal is a perfect example. The company recently announced it would start sharing sensitive user data with Facebook, including information such as IP address, browser information and phone numbers.
Cue a swarm of users deleting the app and fleeing to competitors such as Telegram and Signal. Telegram reported a 500 per cent increase in users (25 million) in 72 hours and WhatsApp’s downloads shrunk by 2 million. The company has even resorted to taking out full-page ads, urging users to stay, and delaying its plans to implement the controversial policy by 3 months.
The coexistence of data security and privacy has long been debated. But WhatsApp’s recent controversy has brought this argument to the fore once more. It’s proof that technology businesses must think carefully about how they handle customer data and crucially, how they communicate those decisions to their customers.
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Whilst WhatsApp can weather a 2 million dent in its user base of 2 billion, the episode highlights the long-term impact of reputation and consumer trust that a cavalier attitude to data ethics can bring.
In the rise of a digital economy, data has become the new oil. Consumers are finally starting to become aware of how and why their data is being shared – and what it’s worth. The seeds of this rising consciousness sprouted with the Cambridge Analytical scandal. Since hawkish journalists and activist consumer groups have upped their game when it comes to calling out bad practice.
Additionally, users have started getting savvier with who and what they share their data with; whether it’s limited the scope of those ubiquitous cookie pop-ups, or leveraging their GDPR rights. And whilst this is still far from the norm when it comes to digital behaviour, no tech company can afford to ignore the direction of travel.
Millennials and their Gen Y through to A counterparts are starting to place a much higher value on a company’s ethical credentials (although the rise and rise of fast fashion business like BooHoo demonstrates that this approach is still a lumpy, inconsistent approach). And their parents, typically considered far from tech-savvy, are stepping it up when it comes to privacy – embracing hard-core password formats and reading the T&Cs in far greater numbers than any other demographic. These shifting norms, combined with a growing awareness of the value of data, is sparking a new breed of start-ups who are placing data ethics at the heart of their strategies.
Whether it’s healthtech, banking apps, or (in my case) a sex and relationships platform, how tech CEO’s approach safeguarding customer information is crucial. From safeguarding against hacks to being clear and honest about what the data is used for; tech platforms can’t afford to cut any corners. The reputational and commercial risks are simply too great.
As the value of privacy takes on new heights in an increasingly surveilled reality, startups are designing their products accordingly. New entrants to the market and larger incumbents would be wise to view Whatsapp as a cautionary tale and do the same.
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