Risks and Regulations in Social Media Data Use

The assignment provides an in-depth analysis of the risks associated with social media data misuse, including incorrect promotion of fake brands, targeted political ads, and illegal activities. It also discusses new regulations such as the GDPR and Centre for Data Ethics, which aim to control data selling and protect user privacy. The impact of these regulations on firm's revenue and survival is also examined, highlighting a short-term decrease in revenue due to restricted data selling policies.

The Rising Risks From
Global Social Media Firms

Table of Contents
INTRODUCTION: .........................................................................................................................1
MAIN BODY:.................................................................................................................................1
P1:Leading social media firms and their income from advert and data sale:.............................1
P2:Effects of misuses of customer data: ....................................................................................1
P3:New and proposed regulation against data selling:...............................................................2
P4:Impact of new regulation on firm's revenue and survival:....................................................2
CONCLUSION: ..............................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION:
User across the globe uses social media platforms regularly to get day to day updates
from these platforms and to be connected with people all over the world. They are not aware that
their personal data used by these platforms have direct or indirect effects on their life. This essay
provide lights on the means through which leading social media firms like Facebook, Twitter
and Instagram earn revenues, how these firms use data of customers, issues regarding data
privacy policy, regulation to control them and impact of such regulations on the revenue and
operations of these firms.
MAIN BODY:
P1:Leading social media firms and their income from advert and data sale:
In present time there are many social media platforms that provides free access to their
user without charging any money from users. Facebook, Twitter and Instagram are major social
media firms that are mostly used by people all over the worlds and have their large numbers of
users. The most common way for websites to generate revenue is to allow companies to advertise
on the site because of the millions of users on a social networking site, advertisers might be
willing to pay more for an ad on a social network. In recent case, Twitter had their developer
conference called Chirp. At conference, they discussed various ways to monetize the website,
most notably by utilising advertising power. In present some social networks are completely free,
but offers a premium option to its users in order to earn some money. The data stored by social
media is potentially very valuable, by storing this data and making it anonymous, communities
can search third-parties willing to pay for it. (The Street, 2018).
P2:Effects of misuses of customer data:
The social media can misuse the customers' data by providing these data to a third party.
Furthermore, there has been a case reported recently which happened in Facebook, such as
Incorrectly promoting a fake brand based on vital personal information of users, using data to
develop targeted political ads for particular politicians political campaign, to create a adverse
environment for their competitors, to change perceptions of consumer for their product, to spy
and for other illegal activities like creation an environment of riots , promote terrorism, hurt
sentimental of a large group of individuals, influence the democratic system etc.

P3:New and proposed regulation against data selling:
New regulations are introduced to avoid misuse of data such as UK government
established a Centre for Data Ethics and revised General Data Protection Regulation (GDPR)
introduced. The regulations of such contain significant expansion of the relevant authority’s
power and role in online advertising. These regulations include the steps to limit cross-border
flow of personal data, mandating storing critical personal data within the country, and criminal
prosecution along with huge penalties against those violating data privacy rules (Norton Rose
Fulbright LLP, 2018). As per new regulations citizens and internet users will have right to know,
on how and for what purpose personal data can be used, and they will also have the right to
withdraw consent, and grants the government the power to identify what critical and sensitive
personal data is.
P4:Impact of new regulation on firm's revenue and survival:
These firms can not keep large amount of personal data without auditing after such
regulation. Companies are required to treat consumers with a high level of privacy by default,
and get consent for further data transfers. Defaulted companies had fined with huge penalties
(Norton Rose Fulbright LLP, 2018). Social media firms are not able to sell data illegally and
highly regulated and controlled by government. For a short period revenue of these companies
decreased up to approx two to three percent by the effect of these regulation regarding restricted
data selling policy.
CONCLUSION:
With the help of above mentioned essay, it is being concluded that data is important for
user so ignoring the data privacy and Selling of data or unauthorised means of advertisement
have direct or indirect effects for human beings so new regulation to control and regulate user
data necessary.

REFERENCES
Online
The Street.Inc. 2018. [Online]. Available through: <https://www.thestreet.com/technology/how-
does-facebook-make-money-14754098>
Steve Campbell. 2010. [Online]. Available through: <https://www.makeuseof.com/tag/how-do-
social-networks-make-money-case-wondering>
Norton Rose Fulbright LLP. 2018. [Online]. Available through:
<https://www.dataprotectionreport.com/2018/07/u-s-states-pass-data-protection-laws-
on-the-heels-of-the-gdpr/>