(from Empoprise-BI) You are not a customer, August 2016 edition (Pandora, Peter Deacon, and Michigan's Video Rental Privacy Act)

(THIS PREVIOUSLY APPEARED IN MY EMPOPRISE-BI BUSINESS BLOG.)

I have made a certain point ad nauseum. If you are a user of a service that provides wonderful things to you, then you are probably not a "customer" of the service provider.

Back before Google became Alphabet, its investor website contained the following question:

Who are our customers?

Think of all the services that pre-Alphabet Google provided - search capability, video watching, blogging, et al.

Now forget about all of them.

Our customers are over one million of advertisers, from small businesses targeting local customers to many of the world's largest global enterprises, who use Google AdWords to reach millions of users around the world.

Perhaps things have changed a bit with the creation of Alphabet, but for the most part, Alphabet exists to serve advertisers. The people using Alphabet services are merely providing data and eyeballs.

Which brings us to Michigan's Video Rental Privacy Act. Going back a decade or two to the time when videotapes were popular, people would go to a video store, choose a video tape to rent, pay some money, take it home, watch it, BE KIND REWIND, and return the tape. This worried privacy advocates, who were afraid that someone's recorded rentals of hot sex action and/or Pauly Shore movies would be revealed to the public. Hence, the Video Rental Privacy Act was born.

Peter Deacon, Pandora user, was subsequently disturbed at what Pandora was doing:

Plaintiff Peter Deacon brought a class action in the United States District Court for the Northern District of California against Pandora, claiming that the music-streaming company violated Michigan’s video privacy law by posting his music preferences on Facebook and making his preferences available via an internet search.

As far as Deacon was concerned, Pandora's sharing of this information with Facebook was a privacy violation. I don't know whether Facebook revealed that Deacon loved Morris Albert's "Feelings," the collected works of Britney Spears, or what. But Deacon felt that the Michigan Video Rental Privacy Act would protect him.

It wouldn't.

In a unanimous decision, the seven members of the Michigan court held that Deacon was not a “customer” under the VRPA because he neither rented nor borrowed anything from Pandora. The act is “intended to preserve personal privacy with respect to the purchase, rental, or borrowing of certain materials,” and prohibits the release of any information that indicates the identity of a customer. Accordingly, only customers can sue under the act. A customer is “a person who purchases, rents, or borrows a book or other written material, or a sound recording, or a video recording.”

Now perhaps this is a case in which the law has not caught up with technology. Or perhaps not. But regardless of how we may feel today, current law assumes that the sound recording was purchased, rented, or borrowed.

Would the legalities have changed if Deacon was paying for his Pandora service? That I do not know.

P.S. My music listening habits are revealed for all to see. And yes, you can find Wham! in the list.