Conversational Commerce: Are You Ready?

Guest post by Jason Miller.

Texting Dominos a pizza emoji and a deliveryman showing up at you door “30 minutes” later with a pizza exemplifies the integration of Business to Consumer (B2C) transactions. Well, the same transactional principles may forever change the B2C relationship. Imagine if instead of sending a text and receiving a pizza, you could text your local grocery store your shopping list or text Amazon about a product you want—and have it delivered the same day.

These possibilities represent the next evolution of the B2C relationship called, “conversational commerce,” which has already taken Asia by storm. It allows users to order on-demand services and products through text messages or other messaging services, established a new commercial platform that may change the game yet again. TechCrunch reported that: China’s WeChat generates over $1B in revenue from its 440 million users, which allows them to use text messages to their pay bills and order products, while Japan’s LinePay takes a similar approach.

The principle is most mobile-phone users spend most of their time texting; why should they have to switch a different app, search for the product, enter their payment information, and then place their order. But soon consumers will be able too simply send a text to the company they wish to make a purchase from. Expanding texting’s potential to making payments, buying products, etc. may alleviate these cumbersome tasks altogether.

While at first-glance commercial communication may seem a bit novel, the United States has certainly taking notice of its impact in Asia. American tech-giants, like Facebook and Google, are jumping on the bandwagon. TechCrunch noted that Facebook, for example, is in the process of implementing these capabilities into their “Messenger App,” allowing users to order food and even speak with businesses directly. Meanwhile, many start-ups have also developed to take their share of this expanding market. Such as Magic, a concierge-type delivery service that lets uses order almost any product for delivery through text, which oddly enough I started using the day I read about it.

Though the market is young in the States, its validity as a commercial platform is clear and a possibly lucrative one at that. If there’s money to be made, then I think its safe to presume that large companies will attempt to adapt their current systems to implement this developing commercial space within their business model (i.e., Facebook, etc.). Hopefully allowing me text a masseuse to and recreate my favorite scene from Boy Meets World; Griff was my hero.

Note from the Digital Counselor:

Entrepreneurs and small business owners should be on the look out for ways to integrate this into their business model. Early adoption could be a standout feature and create a niche that may enable rapid growth. However, rapid growth necessitates the ability to scale quickly, which can be hard for a small business with little capital. Although a great tool, businesses looking to implement must look at potential impacts to their business model and ultimately their bottom line.

About the Author:

Jason Miller is law student at American University Washington College of Law. Jason is originally from Rockville, MD, and studied communications at University of Maryland. While in undgrad, Jason & his friends founded a globally followed music blog, with about 100k unique visitors per month. After graduating, Jason worked at the U.S. Senate for two years before going to law school.

 

Disclaimer: The views expressed here are solely those of the author in his private capacity and do not in any way represent the views of TheDigitalCounselor.com, any other poster/blogger of this blog or any entity affiliated with blog posters. Any comments by TheDigitalCounselor.com do not reflect the views or ideas of any organization or individual that may or may not be affiliated or associated. 

SCOTUS rules that police need a warrant to search cell phones

As we become more reliant on our devices, they collect more data on us, much of which is extremely private. Access to this data has been a point of contention for some time. The Supreme Court’s decision to hear Riley v. California presented an opportunity to draw clear boundary for police in the area of personal privacy.   Privacy groups have been advocating for requirements on how and when cell phone data can be accessed and used by the government since that decision. On June 25, 2014,the Supreme Court announced a win for personal privacy by deciding that a warrantless search of a suspect’s cellphone data incident to arrest is unconstitutional.

Case Highlights

  • “Modern cell phones are not just another technological convenience. With all they contain and all they may reveal, they hold for many Americans ‘the privacies of life.’”
  • The Court observed that modern phones are mini-computers that perform multiple functions and hold immense amount of personal data, and were themselves inconceivable when the Court had originally permitted police to search individuals incident to arrest.
  • The Court acknowledged that searching a cell phone can potentially expose more information to the government than a search of an individual’s house, given the amount of data typical phones can store. The fact “that technology now allows an individual to carry such information in his hand does not make the information any less worthy of . . . protection.”
  • The Court makes clear that “Privacy comes at a cost,” and that the warrant requirement is “an important working part of our machinery of government” that must be respected.
  • The Exception: Although the Court dismissed all of the arguments that were presented for justification of a warrantless search they did say that in “exigent” circumstances like prevention of a terrorist plot or finding a missing child, that police are able to proceed without a warrant. However, after such a warrantless seizure, a court would still have to “examine whether an emergency justified a warrantless search in each particular case.”

Bottom line

From now on, your phone should not be searched just because you have been arrested. Officers must have a warrant to search your phone, aside from a narrow exception.

What’s Next

This case will play a major role in the already contentious debate surrounding personal privacy. It will be interesting to hear how this changes the application of Fourth Amendment protections to searches and seizures of all computers.

Do Not Track Me… But Cater to Me

We have all become accustomed to having our technology cater to most of our needs in very personal way. However, we all desire to retain a certain amount of privacy.  For example, our cellphones track our every move and click while occasionally make calls – and yet we would be lost without the maps and ability to request anything from “Siri.” Our cable boxes may bring our favorite shows and movies but they also report back to providers all of your family’s television viewing habits.  We all appreciate the convenience that customization provides however that means a loss of privacy….

Why Are We Worried?
The latest buzz word is the The Internet of Things (IoT). What is that? “The Internet of Things” refers to the concept that the Internet is no longer just a global network for people to communicate with one another using computers, but it is also a platform for devices to communicate electronically with the world around them. The result is a global “network of physical objects that contain embedded technology to communicate or interact with people, things, and the external environment. It includes everything from traffic sensors to refrigerators, thermostats, medical devices, and wristwatches that can track or sense the environment and use the data they collect to provide a benefit, or transmit the data to a central repository for analysis, or both.”

This network of objects enables providers of goods and services to use your personal behavior to profile and evaluate your activities and habits.  The Internet of Things will result in increased data collection, amplifying the importance of simplifying choices and giving control to individuals with real-time notices. Transparency will facilitate consumer understanding of the collection, use and sharing of personal data. However, there is a real danger of data being used in unexpected ways. The Internet of Things has created a potential perfect storm of four major information policy concerns: online safety, privacy, security, and intellectual property issues. The goal is to determine what “reasonable” expectations regarding data usage should be, and then manage consumer expectations accordingly. Measures ensuring the network’s resilience to attacks, data authentication, access control and client privacy need to be established.  An ideal framework would consider the underlying technology and involve collaboration on an international scale.

The need to balance reasonable activity on the Internet and use of The Internet of Things with responsible privacy protections is exponentially increasing. This balance is extremely important because the last thing we want is to stifle innovation by over legislating this area.

Laws to Watch
At least 14 states have proposed legislation on the 2014 docket that is intended to increase privacy protection for consumers and limit both government and private sector surveillance via the Internet of Things. At the federal level, several bills are already making their way through Congress.

State
AB370, an amendment to the California Online Privacy Protection Act of 2003 (“CalOPPA”). CalOPPA requires owners of commercial websites and online service providers (“operators”) to conspicuously post a privacy policy. The privacy policy must disclose to consumers, among other things, the categories of personally identifiable information (PII), such as name, hone address, email address, social security number,  the operator collects and with whom the operator shares such information. Operators affected by CalOPPA include website operators and, as interpreted by the California Office of Attorney General, operators of software and mobile apps that transmit and collect PII online.

Federal 
The Black Box Privacy Protection Act is a bill in front of Congress that prohibits the sale of automobiles equipped with event data recorders-unless the consumer can control the recording of information. Additionally, the data collected would belong to the vehicle owner.

The We are Watching You Act is a bill in front of Congress that requires the operator of a video service (such as a DVR or Xbox) to display the message “We are watching you” as part of the programming provided to the consumer prior to the device is collecting visual or auditory information from the viewing area. This is not likely to pass but its a sign of legislation to come.

The Federal Trade Commission (FTC) has this phenomenon on its radar, it hosted an all-day workshop entitled, “Internet of Things: Privacy and Security in a Connected World in November. The FTC has also released a number of reports and guidelines that direct business on how to protect consumer privacy.

International 
With Internet Governance on the forefront of international discussion, international “Internet of Things” legislation is not the priority and likely to be left up to each country to decipher. International collaboration on issues like this early is one out come I hope comes from these Internet Governance talks…. but we’re a long way out from that happening.

The examples listed are a narrow sampling of privacy legislation designed to protect users from unwanted intrusions. Most notably, states have passed a number of laws protecting privacy rights in recent years.

Conclusion
The Internet of Things will bring tremendous new benefits to consumers but we must balance the need for consumer privacy. State, federal and international regulators must work to restrict government and private-sector collection and control of the data IoT will create. In the meantime, make sure you are aware of the information you provide through your IoT. Explore privacy settings and read privacy policies if you are concerned about sharing too much data with providers. Know what your priorities are as it relates to customization and privacy. If you value convenience and do not mind a prying eye or two, if it means a personalized user experience, share your data freely. However, if you value preserving your privacy be proactive about doing so until lawmakers can find the appropriate balance. Do not shun technology just educate yourself.