Why consumers should own their data

The overused phrase “data is the new oil” best sums up the importance of data in the modern economy. But, unlike oil, the rules of ownership are murky in the case of data. Once a consumer shares their data with a company, they lose control over it. A new study suggests that it is in the interest of the economy if consumers retain full control of their personal data.

In an article in VoxEU, Stanford University researchers Chad Jones and Christopher Tonetti argue that a consumer owning their personal data would achieve two goals: they would respect their own privacy, and they will be able to sell their data to multiple organizations.

The second goal is subtle: the authors say this takes advantage of the “infinite usability” of data, a trait other goods such as oil do not have. This would lend one’s data wider use, which could improve efficiency in the economy, the authors argue.