Why should consumers trust their privacy to the metaverse?

In our 2021 survey on consumer privacy preferences, trust (or lack thereof) emerged as a major consumer focus. Whether their particular concern was about data collection practices, data security, or data selling, consumers expressed high levels of distrust towards the companies who capture and use their data.

“I would not use some apps recommended online due to privacy issues and a lot of them breaking your trust about not sharing your private information with online marketers”*

“TikTok because I don’t trust their ability to keep data secure.”

Since capturing this perspective, we’ve been trying to understand how exactly trust can be earned, or lost, in the delicate and complex relationship between company and consumer. To accomplish this we have looked at various models of trust to understand where exactly companies are falling short. One model of trust that has particularly resonated with us is the ABI model of trust. This model asserts that the three central pillars of trust are:

• Ability — “the actual or perceived capability and competence to build trust”
• Benevolence — “the extent to which a person is believed to voluntarily do good to the other”
• Integrity — “the perception that a person adheres to a set of principles considered acceptable by the other and acts consistently according to those” (Schuler, 2016).

Let’s look at the company-consumer privacy relationship through the lens of these three pillars. We have included multiple quotes from participants in our survey research to use their voices to frame these topics.

Ability

“[I will not use] Alexa. I do not trust it’s data protection”

“I will not use anything by Apple such as Iphone, Ipads, Mac computers. Etc. I do not trust their security protocols at all.”

Ability is defined as “the actual or perceived capability and competence to build trust” (Schuler, 2016). And while it’s safe to assume that companies certainly have the ability to collect and securely store people’s personal data (after all not all companies have issues with data breaches), there is an issue with their perceived competence to do so.

Users in our survey specifically called out companies and their data protection or security protocols by name and labeled them as insufficient to meet their privacy or security needs.

Of course, with data breaches also being fairly common issues these days (click here to learn about the biggest data breaches to date), it’s also possible that companies aren’t following through on their ability to safely collect and store data and are simply taking shortcuts that don’t prioritize users’ data or their concerns.

Benevolence

“[I will not use] Amazon Echos or Alexa because you don’t know when they stop listening.”

“I limit my use of devices and services owned by Facebook because they’re an awful company with no regard for the privacy of users or the good of the country in general ”

Benevolence is described as “the extent to which a person is believed to voluntarily do good to the other” (Schuler, 2016). This is an area where it’s no surprise that tech companies have a bad reputation in the eyes of the media and the public.

Perhaps because of all the data breaches, data selling, and targeted advertising, it’s tough for consumers to assume benevolence on the part of the companies. In fact, our survey respondents tended to assume that companies do not keep their interests in mind and that they will exploit them for data at any opportunity, even if the consumer considers it an invasion of their privacy.

Integrity

“I don’t trust any of the tech companies nor the government to truthfully acknowledge what info is being gathered, who they are selling it to or how they will use it.”

Integrity is defined as “the perception that a person adheres to a set of principles considered acceptable by the other and acts consistently according to those” (Schuler, 2016). The principles espoused by tech companies align themselves with consumers’ values around privacy and security. However, consumers are aware that their data is being used in ways they are uncomfortable with, which leads to a dissonance between companies’ claimed values and their actions. This breaks down the integrity of companies in the eyes of consumers.

Takeaways

If companies want to rebuild trust with consumers, they need to address their shortcomings when it comes to each of these pillars of trust. This could look like:

• Using their ability to safely manage data to rebuild an image of competence.
• Actually prioritizing the privacy and safety of users to illustrate their benevolence.
• Aligning their espoused and enacted values around privacy and security to act with integrity.

How else do you think companies can rebuild trust with consumers?

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• All consumer quotes are from Outlaw, Carbonneau, et al., 2021

Resources

Outlaw, J., Carbonneau, S., et al. The Extended Mind. (2021). “Don’t Track My Life:” Virtual and Augmented Reality Consumer Data & Privacy Survey.

Schuler, S. (2016, April 15). ABI: What are the three pillars of trust? Linkedin. https://www.linkedin.com/pulse/abi-what-three-pillars-trust-susanne-schuler/

Tunggal, A. T. (2022, February 3). The 62 Biggest Data Breaches (Updated for January 2022) | UpGuard. Upguard. https://www.upguard.com/blog/biggest-data-breaches