Exclusive contract law for data transmission (V)


Si Gyeongmin

Sep 05, 2021

The theory of information barriers believes that information barriers provide justifications for adopting special rules to regulate personal data transmission. Although the theory has been proven to have considerable influence, it is far from indisputable. It is actually based on several premises that are not generally valid.

First, the theory assumes that information barriers are not easy to overcome. This may not be true. Just as data collection technology continues to advance, so does the technology that allows people to control the data collected from it. Relatively immature consumers can learn about possible transmission restrictions by observing the terms that provide more complex parties. In addition, imperfect information is not necessarily an obstacle to mutually beneficial transactions. As consumers become more aware of the potential consequences of personal data transmission in a general sense rather than specific transactions, this misunderstanding may decrease. For all these reasons, consumers may actually be able to obtain more information than assumed by the information barrier theory.

Second, the theory assumes that a considerable number of consumers tend to impose restrictions on the use or transmission of collected data. In fact, their behavior often shows that they pay less attention to these restrictions, the so-called "privacy paradox." In addition, people's evaluations of these restrictions also vary greatly depending on different environmental factors.


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