Data Clean Rooms (DCRs) have emerged as cloud data processing services that enable companies to exchange and analyze data under specific rules that limit its use. These services are typically employed when two entities, such as a newspaper and a grocery store, wish to share limited customer information. The purpose could be, for example, to assess the effectiveness of an advertisement by tracking grocery sales among newspaper subscribers.
However, despite their potential benefits in privacy protection, DCRs can also present similar risks associated with other methods of data disclosure like tracking pixels. They may be used to obscure privacy harms rather than prevent them. The Federal Trade Commission (FTC) emphasizes that companies should not consider DCRs as loopholes to bypass legal obligations or consumer commitments regarding data use.
“DCRs don’t automatically prevent impermissible disclosure or use of consumer data; and unlawful disclosure or use of data is unlawful regardless of whether a DCR is involved,” states the FTC. The agency remains vigilant against unfair practices and deceptive claims concerning data collection, sale, or usage.
Typically, DCR services do not inherently preserve privacy. Contrary to what their name might suggest, they are not designed to isolate or ensure the quality of data but rather facilitate combining and analyzing datasets from different sources. This process involves constraints that must be intentionally configured and monitored by companies to effectively limit data use and disclosures.
The technology allows businesses to selectively purchase precise subsets of user data without sharing entire datasets. However, this functionality can jeopardize individual privacy by enabling easier identification and tracking across various platforms.
Moreover, while DCRs facilitate company priorities—which may not always include privacy—they can increase avenues for potential leaks and breaches due to expanded access points in their infrastructure. A lack of robust security measures could lead to significant risks.
In response to evolving technologies like DCRs, the FTC continues its efforts in protecting consumers from unauthorized disclosures or unexpected uses of their personal information. The commission has previously taken action against digital health platforms such as BetterHelp and GoodRx for allegedly sharing sensitive health details with advertisers without consumer consent.
Liability under the FTC Act remains unchanged regardless of technological advancements; using a DCR does not exempt companies from accountability if they violate consumer trust through unauthorized disclosures.
As history shows through cases involving Snapchat's misrepresented features or Zoom's overstated security claims—companies remain accountable for their privacy assurances irrespective of technology utilized.
Ultimately, while offering some level of privacy enhancement capabilities when appropriately managed—DCRs do not absolve organizations from fulfilling obligations towards safeguarding consumer information nor alter requirements around transparent communication about its handling practices.
