So why are Internet users resigned to being surveilled?

This morning’s Observer column:

It would be patronising to assume that every internet user – except for the occasional geek – is a mug. Some people do read the terms and conditions to which they have to agree when signing up to use “free” internet services. They fully realise that “if the service is free then you are the product”. And yet they persist in using it. Why?

One possible reason is that they place a value on those “free” services. Various studies have tried to estimate what that value might be. A study by the consultancy company McKinsey, for example, asked 3,360 consumers in six countries what they would pay for 16 internet services that are now largely financed by ads. The conclusion was that households would pay €38 (£27) a month on average for those services. From this, McKinsey estimated that “free” internet services generate €32bn of consumer surplus in America and €69bn in Europe.

These calculations are music to the ears of Facebook and Google executives, who interpret them as proof that consumer tolerance of corporate surveillance is really evidence of “rational” economic behaviour. People put up with companies spying on them because they get a good deal out of it.

Into this comforting ointment, three academics have just implanted a number of flies…

Read on