Only one third of people are happy sharing personal data with an app

New research released this week reveals serious concerns for consumers using third-party and free apps, with just a third comfortable sharing personal information.

MEF’s Global Privacy Report examined the findings from 9,500 respondents in ten countries, revealing a number of key privacy issues and is now using the report to lobby for more transparency in the market.

The explosion in app use has been driven by new business models where many apps are free or heavily discounted, but where developers monetise the information they collect on their users.

The report identified:

• Only a third of consumers (37%) are comfortable sharing personal data with an app.
• The majority of consumers consider it important to know when an app is gathering (70%) and sharing (71%)
• Perceptions are that security around data is robust with only 18% stating they are not confident that their personal information is being protected.
• Females and older consumers (over 35s) are more likely to have concerns over privacy.
  Growth markets including Brazil, Mexico and South Africa are least comfortable sharing personal information.

“Two main themes emerge from the research,” commented Andrew Bud, MEF Global Chair. “Consumers demand transparency when apps are sharing their data, and importantly the app community needs to do a better job of explaining to consumers why it’s in their interests to do so.”

“This lack of active transparency and education risks holding back the global mobile content and commerce market. MEF’s 2012 Global Consumer Survey found that 35% of consumers do not purchase more often on their mobile because of a lack of trust.”

The survey also shows that a third of consumers (33%) think they have complete control over how their personal information is used for advertising purposes.

However, according to the report’s authors, in reality it is unlikely consumers are able to control the way companies use their personal information, or if they can, it is likely few will understand how to exercise control. This means there is a gap between the power they think they have, and what they are actually able to do.

The report is part of MEF’s on-going activities to champion and advance Consumer Trust in the mobile industry. This was formalised last year with the launch of the Privacy in Mobile Applications Initiative whose 17 member companies Working Group has a remit to establish industry wide best practice across the mobile value-chain built on the consumer’s informed consent.

“For every one of us with a stake in the future of mobile apps, the MEF Global Privacy Report delivers a stark message that’s also filled with exciting opportunity,” said J.R. Smith, CEO, AVG Technologies. “We need to deliver transparency, security, and control or we fail. And maybe, amid an unprecedented wealth of opportunity for innovation and market creation, fail even to survive.”