Could Data Regulations Actually Fuel Growth and Innovation?

Data Security DigestAfter watching this video of a Singaporean Politician’s Scathing Smackdown of a Facebook Executive for Trying to Evade Questions, business leaders would be excused for believing that governments around the world are done giving companies that profit off their users’ personal data the benefit of the doubt when it comes to data privacy. The message is clear: better protect user data or be regulated out of existence.

That may be the wrong way to look at the current state of affairs. As Conor Sen argues in this Information Management opinion piece, “Data Regulation Could Power a New Era of Tech Growth,” part of the maturation process of any industry is regulation that suits its activities, and the gains from a safer, more trusted technology sector could quite plausibly outweigh any losses.

Take the growth of the credit-card industry decades ago as an example. “The industry fought regulation that imposed limits on how much cardholders could be liable for in the case of fraud or theft, but after the industry lost that fight and consumers had some protections, plastic became the coin of the realm,” said Sen. “This would not have happened if the credit-card industry had remained a Wild West. (Read more...)

*** This is a Security Bloggers Network syndicated blog from Blog – Protegrity authored by Michael Maloney. Read the original post at: http://www.protegrity.com/data-regulations-actually-fuel-growth-innovation/