Thursday, May 7, 2015

Legal Geek No. 43: Privacy Law Roundup on Airline Personalized Pricing and TV Voice Recognition

Welcome back to Legal Geek. This week, we take a look at two interesting stories in privacy law that developed in April which you should be aware of as a consumer, as we continue to move forward in 2015.

First, we begin with a story about your new TV and how it may be spying on you!

Smart TV manufacturers have typically set default settings for the new voice recognition equipment to be enabled, and whatever is recorded by the voice recognition equipment is by default sent to the manufacturer for quality control and improvement purposes. The manufacturers want this voice control to work out-of-the-box for the convenience of the consumer, but these defaults raise privacy concerns because it means all your conversations in front of the TV could be monitored carefully by employees of the manufacturer.

And that could be considered illegal wiretapping, at least if the consumer is not aware of this functionality. To address the issue, California lawmakers this week proposed a bill that would prevent these defaults from being used without explicit consumer agreement. That would allow consumers to opt-in to help the manufacturer make the product better, while removing any concerns of Big Brother watching in on your private conversations without consent.

This is likely a good move, although it will hamper the QA efficiency of the manufacturers. Still, the more important rights likely win out here.

Second, did you know airlines could be personalizing prices for you to determine if they can bilk you for more money?

It's true. Since 2014, airlines have been allowed by the Department of Transportation to collect data on consumers and then tailor prices based on predicting how much the airline thinks you will be willing to pay. The factors include things like your zip code, marital status, and travel habits.

Once again, a lawmaker is standing up to this type of potential anti-consumer behavior. This time, it is Senator Al Franken, who is demanding for at least more transparency in the process used by airlines, if not the end of personalized pricing altogether. Word to the wise: book your flights while browsing anonymously for the fairest fares.

Bottom line - The battle between consumer rights of privacy and business needs will continue to evolve in this legal hotbed, and the wise geek among us will stay aware of these things to avoid falling into potential privacy traps.

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Thanks for reading. Please provide feedback and legal-themed questions as segment suggestions to me on Twitter @BuckeyeFitzy

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