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The Privacy Fallacy: Harm and Power in the Information Economy

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Our privacy is besieged by tech companies. Companies can do this because our laws are built on outdated ideas that trap lawmakers, regulators, and courts into wrong assumptions about privacy, resulting in ineffective legal remedies to one of the most pressing concerns of our generation. Drawing on behavioral science, sociology, and economics, Ignacio Cofone challenges existing laws and reform proposals and dispels enduring misconceptions about data-driven interactions. This exploration offers readers a holistic view of why current laws and regulations fail to protect us against corporate digital harms, particularly those created by AI. Cofone then proposes a better meaningful accountability for the consequences of corporate data practices, which ultimately entails creating a new type of liability that recognizes the value of privacy.

260 pages, Kindle Edition

Published November 30, 2023

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Ignacio Cofone

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Displaying 1 - 2 of 2 reviews
82 reviews
April 5, 2025
I would recommend this book to ANYONE, especially those who don't know anything about privacy and those who believe that we don't need to protect it. I wish every single lawmaker read this book. I truly believe that this is one of the best books related to privacy out there. It is current, it has great explanations, and it does an excellent job at illustrating the issues in a way that everyone can understand.
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April 16, 2024
I read this book, The Privacy Fallacy: Harm and Power in the Information Economy, by Ignacio Cofone, upon a trip Warwick the past week. This is a Cambridge University Press 2023 book I had picked from their publication list without paying enough attention to the book table of contents, since it proved to be a Law book!

Still, this ended up being a fairly interesting read (for me) about the shortcomings of the current legal privacy laws (in various countries), since they are based on an obsolete perception that predates AIs and social media. Its main theme is that privacy is a social value that must be protected, regardless of whether or not its breach has tangible consequences. The author then argues that notions that support these laws such as the rationality of individual choices, the confusion between privacy and secrecy, the binary dichotomy between public and private, &tc., all are erroneous, hence the “fallacy” he denounces. One immediate argument for his position is the extreme imbalance of information between individuals and corporations, the former being unable to assess the whole impact of clicking on “I agree” when visiting a webpage or installing a new app. The more because the data thus gathered is pipelined to third parties. (“One’s efforts cannot scale to the number of corporations collecting and using one’s personal data”, p.93) For similar reasons, Cofone further states that the current principles based on contracts are inappropriate. Also because data harm can be collective and because companies have a strong incentive to data exploitation, hence a moral hazard.

No surprise!, the statistical and machine-learning aspects of the book are few and vague, in that the additional level of privacy loss due to post-data processing is considered as a further argument for said loss to be impossible to quantify and assess, without a proper evaluation of the channels through which this can happen and without a reglementary proposal towards its control. This level of discourse makes AIs appear as omniscient methods, unfortunately.

The attempts at regulation such as opt-in and informed consent are then denounced as illusions—obviously so imho, even without considering the nuisance of having to click on “Reject” for each newly visited website!—. De- and re-identified data does not require anyone’s consent. Data protection rights, as of today, do not provide protection in most cases, the burden of proof residing on the privacy victims rather than the perpetrators. The book unsurprisingly offers no technical suggestion towards ensuring corporations and data brokers comply with this respect of privacy and on the opposite agrees that institutional attempts such as GDPR remain well-intended wishful thinking w/o imposing a hard-wired way of controlling the data flows, with the “need of an enforcement authority with investigating and sanctioning powers” (p.106) . The only in-depth proposal therein is pushing for stronger accountability of these corporations via a new type of liability, with a prospect of class actions (if only in countries with this judiciary possibility).
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