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Chapter 4 Ethical and Social Issues in Information Systems 171
capability. Foursquare is a popular mobile social Communications Commission in cooperation with
application that allows users to “check in” to a the Federal Trade Commission sponsored a forum to
restaurant or other location, and the app automati- discuss with industry and privacy groups the social
cally lets friends on Facebook and other programs impact of location-based services, both positive and
learn where you are. If you’re in a new town, negative. Industry representatives from Facebook,
the app transmits your location and sends you Google, and Foursquare argued that existing apps
popular spots close by, with reviews from other as well as corporate policies were adequate to
Foursquare users. After starting up Foursquare protect personal privacy because they rely on user
on a smartphone, you’ll see a list of local bars permissions to share location data (opt-in services).
and restaurants based on your cell phone’s GPS The industry argued as well that consumers get
position, select a location, and “check in,” which real benefits from sharing location data, otherwise
sends a message to your friends. Foursquare has they would not voluntarily share this data. Privacy
a widely accepted loyalty program. Each check- experts asked if consumers knew they were shar-
in awards users points and badges, which can ing their location information and what kind of
be used later for discounts at various venues. “informed consent” was obtained. Privacy advocates
Visitors to places compete to become “Mayors” of pointed out that 22 of the top 30 paid apps have no
the venue based on how many times they have privacy policy, that most of the popular apps trans-
checked in over a month’s time. Mayors receive mit location data to their developers after which the
special offers. information is not well controlled, and that these
As the popularity of location-based services like services are creating a situation where government
Foursquare has grown, so too have concerns about agencies, marketers, creditors, and telecommunica-
the privacy of individual subscribers, and their tions firms will end up knowing nearly everything
friends on Facebook and Twitter who may not be about citizens including their whereabouts. The
members. Many observers fear these services will biggest danger they described are services that
operate automatically, without user permission locate people automatically and persistently without
or awareness. The revelation in 2011 that Apple users having a chance to go off the grid, and without
and Google were surreptitiously and continuously being able to turn off the location features of their
collecting personal, private, and location data phones.
spurred privacy groups and Congress to launch
Sources: “Apple Fails to Fend Off Mobile Tracking Lawsuit,” Reuters,
investigations. Most cell phone users are unaware
June 14, 2012; Christina DesMarais, “Location Tracking of Mobile
that their locations and travels are readily avail- Devices Gets Really Nosy,” PC World, June 2, 2012; “This Smart
able to law enforcement agencies through a simple Phone Tracking Tech Will Give You the Creeps,” PC World, May 22,
e-mail request, and without judicial review, and 2012; Andy Greenberg, “Reminder to Congress: Cops’ Cell Phone
Tracking Can Be Even More Precise than GPS,” Forbes.com, May
at the expense of the carriers. In June 2012, a U.S. 17, 2012; Noam Cohen, “It’s Tracking Your Every Move and You May
District Judge in California ruled that Apple must Not Even Know,” The New York Times, March 26, 2011; Robert Hotz,
defend against a lawsuit accusing it of secretly “The Really Smart Phone,” The Wall Street Journal, April 23, 2011;
Peter Swire, “Wrap Up on Privacy and Location Based Services”
tracking location data on millions of its iPhone and
and Matt Blaze, “Technology and Privacy,” FCC Forum: “Helping
iPad users, and the Supreme Court ruled that law Consumers Harness the Potential of Location Based Services,” June
enforcement may not use GPS devices planted on a 28, 2011; Julia Angwin and Jennifer Valentino-Devries, “Apple,
Google Collect User Data,” The Wall Street Journal, April 22, 2011;
car to track suspects without a warrant.
“When a Cell Phone Is More Than a Phone: Protecting Your Privacy
To date, wireless location-based services in the Age of the Smartphone,” Privacy Rights Clearinghouse,
remain largely unregulated. In 2011, the Federal http://www.privacyrights.org.
CASE STUDY QUESTIONS
1. Why do mobile phone manufacturers (Apple, informed when they are being tracked? Why or
Google, and BlackBerry) want to track where their why not?
customers go? 3. Do you think mobile phone tracking is a violation
2. Do you think mobile phone customers should be of a person’s privacy? Why or why not?
able to turn tracking off? Should customers be
MIS_13_Ch_04_Global.indd 171 1/18/2013 10:27:41 AM
