PHONE, DID YOU MOVE MY PHONE,
AUSTYN?
WHEN IN DOUBT, BLAME THE FLOOR
DIRECTOR.
COMPANIES ARE DESPERATELY
TRYING TO OUTRUN FACEBOOK IN
THE RACE TO PRIVACY.
TAKE VENMOW.
A DIGITAL WALLET APP THAT LET'S
YOU SHARE PAYMENTS WITH
FRIENDS, FAMILY AND VENDORS.
I GOT AN E-MAIL FROM VENMO.
THE REST OF MY STAFF WHO USE IT
AND USE THE APP GOT IT, TOO.
WE WERE TALKING ABOUT IT IN THE
MEETING TODAY, AND IT SAYS
VENMO IS MAKING CHANGES TO THE
VENMO PRIVACY POLICY AND
CHANGES WILL BECOME EFFECTIVE
TOMORROW FOR ALL USERS.
SEEMS LIKE A BIT OF A RUSH, BUT
WE SHOULD TELL YOU VENMO IS
OWNED BY PAYPAL, A NASDAQ
TRADED STOCK, IF YOU OPEN
PAYPAL YOU DEFINITELY HAVE SOME
TYPE OF STAKE IN THIS.
PAYPAL DOWN 1.63%.
I ACTUALLY READ IT, THIS VENMO
THING MENTIONS IT USES COOKIES
AND DOES SHARE CERTAIN DATA AND
THE CHERRY ON TOP, DOESN'T
OFFER BOX TO CHECK OUT OR OPT
OUT OF ANYTHING, IT SAYS WE ARE
CLARIFYING OUR DATA POLICY.
AS COMPANIES TRY TO FIX
POLICIES TO AVOID A FACEBOOK
FIASCO, MANY ARE GOING STRAIGHT
TO MY NEXT GUEST, FORMER CHIEF
LEGAL COUNSEL FOR GOOGLE EUROPE
WHO STARTED A NEW COMPANY THAT
HELPS THEM PLUG THE
CONFIDENTIALITY CRACKS.
NIGEL JONES JOINING US LIVE
FROM LONDON.
NIGEL.
>> HELLO.
LIZ: WHAT'S YOUR WORLD BEEN
LIKE SINCE THE FACEBOOK LEAK
BROKE ON MARCH 29, THE REAL
STORY HERE.
16 TO THE 29?
>> BUSY AND IT'S BEEN FUN.
LIZ: FUN.
FUN NOT FOR THE COMPANIES, I'M
SURE, BUT DESPERATE TO FIGURE
OUT HOW TO DUCK AND COVER FROM
THE FACEBOOK SITUATION AND MAKE
SURE THEY'RE IN COMPLIANCE.
WE REALLY DON'T KNOW HOW 50
MILLION USERS' DATA GOT INTO
THE HANDS OF CAMBRIDGE
ANALYTICA BUT WHETHER FACEBOOK
SOLD OR GAVE IT TO THE OUTFITS
OR LEAKED IT, DEFINE THE
BIGGEST HOLE YOU THINK FROM
WHAT YOU CAN SEE FACEBOOK DID
NOT FILL.
>> WELL, I THINK THEY DIDN'T
EXPLAIN TO THEIR USERS WHAT
THEY WERE DOING.
I MEAN, IF THEY SAID TO A USER
WHAT'S GOING TO HAPPEN IS
YOU'RE GOING PLAY THIS
PERSONALITY QUIZ, YOUR PERSONAL
DATA IS THEN GOING TO GO A
COMPANY YOU'VE NEVER HEARD OF
WHO IS THEN GOING TO SHARE IT
WITH ANOTHER COMPANY YOU'VE
NEVER HEARD OF WHO'S GOING TO
USE THE DATA FOR THE PURPOSE OF
TARGETING YOU FOR ADVERTISING
TO GET YOU TO CHANGE YOUR MIND
AT THIS ELECTION, THE USERS
WOULD BE FREAK OUT BY THAT.
BUT THE USERS DIDN'T KNOW.
THAT WAS THE HOLE.
NOBODY UNDERSTOOD WHAT FACEBOOK
WAS DOING.
THEY DIDN'T UNDERSTAND WHAT THE
DEVELOPERS WERE DOING AND
DIDN'T UNDERSTAND THAT FACEBOOK
WERE LETTING THE DEVELOPERS
HAVE THE DATA IN THE FIRST
PLACE.
LIZ: I'M GETTING ENRAGED NOT
BECAUSE I PUT A LOT OF STUFF ON
FACEBOOK, OUR SHOW HAS A PAGE,
FACEBOOK.COM/LIZ CLAMAN.
THE PROBLEM IS NOT PEOPLE
BLITHELY THREW OUT STUFF, WHO
THEY'RE DATING, WHO THEY ARE
MARRIED, TO WHERE THEY
VACATION, BUT SOMEHOW ENDED UP
IN THE HANDS OF OUTFIT OR OTHER
OUTFITS THAT SHARED IT WITH
POLITICAL CAMPAIGNS, OR THEY
WERE POLITICAL ACTION COMMITTEE
PEOPLE.
EXPLAIN TO US WHAT THE REST OF
SILICON VALLEY NEEDS TO DO
RIGHT NOW TO CLOSE THESE HOLES
THAT THEY CLEARLY HAVE OPEN.
>> WELL, I HEARD WHAT YOU WERE
SAYING EARLIER ABOUT READING
THE PRIVACY POLICY ON YOUR
APPLICATION.
AND THE FACT IS THE COMPANIES
CAN'T FIX THIS PROBLEM BY
ISSUING NEW POLICIES.
YOU'RE ONE OF THE FEW PEOPLE
THAT READ THAT POLICY.
MOST PEOPLE WON'T READ THE
POLICY.
THESE COMPANIES, NOT JUST
SILICON COMPANIES, THEY HAVE TO
MAKE PEOPLE CARE ABOUT PRIVACY,
THEY NEED TO MAKE PEOPLE
UNDERSTAND WHAT HAPPENS TO
THEIR PERSONAL INFORMATION, AND
IF PEOPLE START TO UNDERSTAND
WHAT'S HAPPENING TO THEIR
PERSONAL INFORMATION, IF IT'S
EXPLAINED TO THEM SIMPLY, THEN
THEY NEED TO ALLOW PEOPLE TO
SAY YES OR NO.
LIZ: NIGEL, I'M GUESSING.
>> THE PRIVACY DASHBOARDS WHICH
ARE EASY TO UNDERSTAND.
LIZ: I AM GUESSING YOU DID NOT
ADVISE VENMO, YOU CAN CLARIFY
IF DID YOU.
>> NO, NO.
LIZ: WHAT WOULD YOU HAVE TOLD
THEM.
THEY EXPLAINED THE UPDATES,
THEY CLARIFIED, BUT AS FAR AS I
COULD SEE, THEY DID NOT ALTER
ANYTHING, WHEN THEY CLARIFIED,
THEY SAID HEY, WE USED COOKIES,
IF YOU DON'T WANT THAT, THEN
YOU'RE OUT OF LUCK USING VENMO.
I HAVE NOT ATTACHED TO VENMO,
I'M GOING TO GO APPLE PAY
BECAUSE OF WHAT TIM COOK JUST
SAID.
>> IF YOU DON'T UNDERSTAND WHAT
PERSONAL INFORMATION THAT
COMPANY IS COLLECTING, YOU
DON'T KNOW WHAT THEY'RE DOING
WITH IT, YOU DON'T KNOW WHO
THEY'RE SHARING IT WITH, AND
YOU DON'T KNOW WHAT THEY'RE
GOING DO WITH IT WHEN FINISHED
WITH IT, YOU DON'T KNOW WHAT'S
HAPPENING ABOUT YOUR PERSONAL
INFORMATION.
IF YOU CARE ABOUT IT, YOU HAVE
THE CHOICE HOPEFULLY TO GO
SOMEWHERE WHERE THEY DO CARE
ABOUT YOUR PERSONAL INFORMATION
AND EXPLAIN IT TO YOU PROPERLY.
IT MAY BE THAT THE APPLICATION
DO CARE BECAUSE IT WAS
EXPLAINED TO YOU.
LIZ: TIM COOK SEES VENMO AS A
THREAT TO APPLE PAY, HE'S
SAYING WE DON'T HAVE ANYTHING
TO WORRY ABOUT.
WE ARE CLEAR AND WE ARE TIGHT
WITH YOUR DATA.
YOUR COMPANY IS VERY
INTERESTING BECAUSE HAVING BEEN
THE CHIEF LEGAL COUNSEL OF
GOOGLE EUROPE, YOU'VE
UNDERSTOOD WHAT'S GOING ON.
IT'S KIND OF AMAZING, EUROPE IS
AHEAD OF US, YOU'VE BEEN BUSY
WITH THE GENERAL DATA PRIVACY
REQUIREMENT THAT IS REQUIRED OF
ALL EUROZONE COUNTRIES OR
EUROPEAN UNION COUNTRIES AND
THEY HAVE TO COMPLY BY MAY,
WHAT IS WHAT DO YOU?
DO YOU HAVE A CHECKLIST FOR
THESE COMPANIES AS THEY GET UP
TO SPEED ON COMPLIANCE?
>> I MEAN IT'S NOT JUST
EUROPEAN COMPANIES.
THIS EUROPEAN LAW IS COMING IN
ON THE 25th OF MAY WHICH IS
CHANGING THE LAW ALL ACROSS
EUROPE, BUT ALSO APPLIES TO
U.S. COMPANIES.
IT APPLIES TO ALL U.S.
COMPANIES THAT ARE PROCESSING
THE PERSONAL INFORMATION OF
EUROPEAN CITIZENS, SO IT IS
APPLICABLE TO THE FACEBOOKS AND
THE GOOGLES AND THE TWITTERS OF
THIS WORLD, AND THEY ARE TAKING
STEPS TO COMPLY WITH THIS LAW.
AND SO, OUR PRODUCT, THE
PRIVACY COMPLIANCE HUB, IT JUST
ENABLES THE COMPANIES WHETHER
IN THE U.S. AND WHETHER THEY
ARE IN EUROPE TO BUILD,
MAINTAIN, AND ONE OF THE MOST
IMPORTANT THINGS IS DEMONSTRATE
THEY'RE A COMPLIANT COMPANY.
THAT'S ONE OF THE CHANGES IN
THE EUROPEAN REGULATION, IS
INSTEAD OF JUST SAYING YOU
COMPLY WITH THE LAW, NOW YOU
ARE GOING TO HAVE TO SHOW YOU
THAT COMPLY WITH THE LAW.
SO OUR PRODUCT ENABLES
COMPANIES TO DO THAT.
LIZ: NIGEL JONES, AND WHAT AN