The FTC unveiled a lengthy report, Big Data: A Tool for Inclusion or Exclusion? Understanding the Issues, warning companies about commercial uses of big data and the discriminatory impact it may have on low-income and underserved populations. “Big data” refers to the ubiquitous collection of massive amounts of consumer information by companies, which may be analyzed to reveal certain consumer patterns, trends, and associations.

While the term may conjure up an ominous feeling for some, big data has brought numerous advantages to society by efficiently and effectively matching products and services to consumers of all demographics. However, the FTC’s report warns that potential inaccuracies and biases might lead to detrimental effects on low-income and underserved populations, such as the misuse of personal information, reinforcing existing biases and disparities against certain populations, perpetuating fraud against vulnerable consumers, and weakening the overall effectiveness of consumer choice. While companies can design efficient big data algorithms that learn from human patterns and behavior, those algorithms may also “learn” to generate biased results.
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