Legal Eye: Social networkers get smart about privacy rights

Social networking fans are getting more aware of their privacy rights online, says Ruth Hoy, and they're using web 2.0 technology to protect them.

Since their introduction, social networks have always had to walk a fine line regarding the usage of user data, particularly because of the personal information shared by people on these platforms.

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Privacy issues are rife online, with data breaches a growing concern. In the advent of 'broadband for all' by 2012 (as outlined in the Digital Britain report launched earlier this month) more people are going to be online, meaning more people will face threats.

However, as Facebook unwittingly showed us recently, people are not as naive about their rights online as some may believe.

Facebook bore the brunt of intense public criticism when, without warning, it updated its terms of use to grant the site full control and use of information posted by account holders, even after they had shut down their profile page.

Co-founder and CEO Mark Zuckerberg insisted via his blog that: "In reality, we wouldn't share your information in a way you wouldn't want. The trust you place in us as a safe place to share information is the most important part of what makes Facebook work."

But this fell on doubtful ears, as many astute Facebook users realised this granted the company the right to retain their old content for any use; including for sale to marketing, advertisers and other third-parties. Ultimately, "the power of the people" during the course of the week forced the site to withdraw the new conditions, reverting back to the old terms of use.

So as the internet evolves, are we becoming increasingly savvy about data protection and self-regulation? What is interesting, and a positive sign about this situation, is the awareness of data protection and online rights demonstrated by Facebook users, of which there are some 175 million worldwide.

The mass public outcry demonstrated that people do seem to be taking their privacy more seriously. Facebook underestimated its audience by assuming it could make changes without sufficient warning or engagement with its community.

It also shows us that users have the power to shape the policy of social networks. It is ironic that complainers used the Facebook platform to set-up groups against the social network's decision, rallying a plethora of support to overturn the decision. This public display of power in numbers, while a familiar method to force social and political change, has taken on a new shape via the internet and more specifically, web 2.0.

However, the self-regulating environment of web 2.0 is in decline, with search engines and social networking sites set to come under even greater regulatory scrutiny in order to better protect users' privacy.

This will impact social networks, whose push for user self-regulation currently works well for them, offering them more freedom to do business. While a global and uniform set of standards relating to websites' use of personal information may be ambitious, and some time in development, it is certainly on the horizon. As the number of breaches and cases of misuse of data increase, current privacy restrictions will be tightened and standardised both here and across the globe.

At this point in time, transparency is the key for social networks to implement any changes to their terms of use, especially those pertaining to privacy and personal data.

The fact that Facebook moved forward with implementing these updates without first engaging their users was a mistake they are unlikely to make again. In light of what has been a PR nightmare, the company seems to have learnt its lesson and has responded well by developing a Bill of Rights and Responsibilities group on the site which enables users to discuss the terms of use and make suggestions. This is definitely a move in the right direction.

Ruth Hoy is a partner in law firm DLA Piper's IP and Technology group.