When I was talking with a Google product manager last month about privacy issues, he said as long as the company 1) let the users know how it handles private data, 2) be transparent, and 3) be more user-centered in design of the privacy options, there would not be big privacy issues.
Google has its privacy principles as guide to design their online products (also watch the video below). Those five bullet points deliver the messages that Google is using personal information for good use - customized and valuable products and services, Google is following the privacy standards to protect user's data, and Google is providing options to let user protect his/her privacy.
Youtube Video: Google's Privacy Principles
Comparatively, Microsoft defines their guiding principles as transparency, control, and security.
I believe both companies are doing the right things about privacy. Although I have no idea what is the best way to balance private data and better service, the followings are must-dos to embrace user-centered privacy principles:
- Be transparent. Let the users be aware of their personal data and how the product/service is using the data.
- Be controllable. Let the users have control of their personal data and options to choose whether they would like the company to use the data to do good things.
- Let the privacy principles involved in early stages of product/service design. Design privacy principles, and use them as guide to design.
