A new lawsuit pertaining to customer data being sold to third parties has been filed against Apple, highlighting the need for decentralized blockchain technology.

According to the lawsuit, Apple is in violation of state privacy laws by selling its customers’ iTunes and Apple Music listening data to third parties. In turn, the third parties allegedly match the data they acquire from Apple to other sensitive information gathered about iTunes customers from other sources. They then resell the information in the open market — without providing any prior notice.

[bctt tweet=”Apple is in violation of state privacy laws by selling its customers’ iTunes and Apple Music listening data to third parties.” username=”beincrypto”]

Apple Selling Customer Data: When Will It End?

The recent increase in reported incidents where users’ privacy is compromised calls into question current models, in which third-parties collect and control massive amounts of personal customer data.

In the era of Big Data, information is constantly being collected and analyzed, leading to innovation and economic growth. Companies and organizations use the data they collect to personalize services, optimize the corporate decision-making process, predict future trends, and more.

Today, data is a valuable asset in our economy. While we all reap the benefits of a data-driven society, there is a growing public concern about user privacy.

Centralized organizations, both public and private, amass large quantities of personal and sensitive information — just like in Apple’s case with iTunes data. Individuals have little or no control over the data that is stored about them or how it is used.

As society advances through the process of digitization, consumers are increasingly aware of the risks associated with sharing sensitive data. A growing portion of users already believes that private data and sensitive data, in general, should not be entrusted to third-parties — where it’s susceptible to attacks and misuse.

Blockchain Technology: Securing User Data

Can blockchain technology be used to improve customer data management processes for Apple and other companies?

In an era increasingly concerned with data consent and the protection of consumer information, blockchain-powered data management tools have the potential to eliminate fears of privacy breaches and ignite a new paradigm of consumer-driven personalization.

Blockchain advocates use the term “trustless” to define this quality. This means that transactions can occur in the complete absence of a traditional provider of trust — such as a company, bank, or government. These same trust-based principles can also be transferred to the marketing sphere, opening up new potential for personalization tactics that don’t jeopardize consumer trust or brand credibility.

Privacy-Preserving Data Management

If customers gain confidence that they can share information with companies without risking data misuse, the balance can tip in favor of personalization. Customers may freely share their profiles to help marketers match their preferences.

Businesses like Apple might meet customers in a data-rich marketplace with flexible data management options and enable customers to present their data to their preferred businesses — but only when they choose to do so. Blockchain technology supports this by ensuring users have ownership of their data. Everything is transparent and auditable, while also allowing for fine-grained access control. This would build confidence because customers could easily detect any data sharing.

What do you think about the lawsuit against Apple in regards to selling customer data to third parties? Do you think blockchain technology can secure user data? Let us know your thoughts in the comments below!