The importance of protecting consumer privacy

[Commentary] Facebook admitted this week that it inadvertently passed some information to the "apps" - things like games you play with friends, or family trees - that can be accessed through the site. Some apps, in turn, handed the information over to advertisers who, under Facebook's rules, had no right to see it.

A system that is supposed to be sealed, keeping data in the hands of Facebook and the apps personally selected by its users, turned out to have a leak. Facebook's explanation of this glitch was somewhat disingenuous. It blamed a basic flaw in the design of web browsers for the problem. But if that was the case, then why, by its own estimate, did only a handful of app developers fall foul of its rules? In the overall scheme of things, this is not a big deal. The information at issue - the personal identification numbers of Facebook users - probably has little value unless it can be combined with other types of personal information, and Facebook says it does not believe the data were collected. But the slip was instructive. The architecture of the new world of social networks and smartphones is starting to throw up some vexing questions of control. Unless they are resolved, a potentially highly profitable way of delivering services to consumers will fail to reach its full potential, as users shy away and regulators start to interfere.

The encouraging news is that the new platform companies have every incentive to improve the policing of their systems and reassure users. Shortly before its latest slip, for instance, Facebook took an important step by giving its users a way to see what data their apps had accessed. Ultimately, proving they have mastered their powerful new machines - and are prepared to hand more of the control to their users - will be the surest way for companies like this to make sure no one tries to take the keys away.