The Economy of Influence and Privacy Rights: Focus on Clubhouse

Clubhouse is a new platform based on voice. The application offers virtual "rooms" that bring people together around a topic of conversation. So, just like in real life, users are able to enter a room as a spectator and can try to speak by raising your hand and hope that the speaker gives the floor to you. Users are also given the opportunity to create their own room and invite or meet people from all over the world.

Whether it's a talk show, a DJ party, speed-dating, debates, Clubhouse offers us the opportunity to e-live daily life as we knew it prior to the pandemic - but what about privacy rights?

According to a spokesperson in the applications press release, as published in the New York Times:

 “We believe voice is a powerful medium for people to connect, share, learn and grow through authentic conversation. On Clubhouse anyone can be a creator by starting a room and hosting conversations”.

At a time when cyber-attacks are increasing and in a context where malicious internet users are boycotting networks to spread extremist ideas, we will see the impact that platforms such as Clubhouse may have on the privacy rights of individuals, while balancing the central position and economy of influence that users of such platforms have in our digital economy. 

What is the “Economy of Influence”?

Clubhouse launched a "pilot programme" to give access to a limited number of users as part of a first phase. The influencers on this platform do not - unlike TikTok, Instagram or Snapchat - represent generation Z or Y, but are generally in their forties and fifties. 

Content creators or influencers prove to be the key to boosting an online platform’s success. This fact has not escaped the attention of venture capitalists who are betting large sums of money on such individuals, who are capable of generating significantly increased traffic towards digital platforms. Indeed, one company has recently recruited a leading TikTok user (who is only 18 years old) as a venture capital partner.

For example, the Vine platform, a former star of social networking, withdrew its app from the market following the departure of many of its key users, due to the fact they were not paid. Vine thus paid the price for its inability to retain its key influencers and creators of the content on the platform.

This example reveals the phenomenon of the "creator economy" or "influence economy" On Clubhouse’s side, as with all social media apps in our economy of influence, the main challenge will be to monetize the concept in order to be able to remunerate (and keep) its users.

The limitations of “e-influence” - what about privacy rights?

Any platform which allows for user-generated content, without exception, are subject to abuse, as soon as users are able to upload content.

Clubhouse has been criticised as "inactive" due to user generated content containing antisemitic, homophobic, misogynistic and racist ideas. It would seem that the application did not set up a system to filter upstream the creation of virtual rooms for use by hate groups. This is a clear violation of EU principles.

Indeed, the General Data Protection Regulation (GDPR) has repeatedly been recognised as the "best data protection regime in the world". The European Union presents itself as a true bastion of freedom and as a wall of protection against invasions of privacy. Increasing digitisation therefore goes hand in hand with effective data protection. 

The State Commissioner for Data Protection and Freedom of Information, Professor Dieter Kugelmann, recently spoke out on the privacy risks for users of the Clubhouse platform. According to Prof. Kugelmann, Clubhouse users would be forced to provide the contact data of other individuals stored on their devices without having to obtain consent. In addition, the Clubhouse platform would continuously record data - particularly data relating to recorded conversations - and would be able to use them again later, without necessarily being transparent about such use. Mr. Kugelmann therefore recommends refraining from downloading Clubhouse, because of Clubhouse's alleged failings to comply with the requirements of the GDPR.

As a reminder, the GDPR requires companies to provide individuals with complete and accurate information prior to processing the data of such individuals. Data subjects must be able to understand the reason for the collection of their personal data, understand the processing that will be carried out on them and, finally, the rights they have to take control over their privacy. All this contributes to the respect of the principle laid down in Article 6 of the GDPR on the lawfulness of the processing - which may be consent or some other ground such as legitimate interests or performance of a contract.

What about sensitive data?

Moreover, Article 9 of the GDPR specifies that the processing of special categories of personal data such as racial or ethnic origin, political opinions, religious or philosophical beliefs or trade union membership, and biometric data (such as one’s voice) must be subject to extra layers of protection, and therefore compliance by data controllers and processors. Therefore, racist and antisemitic statements related to an individual’s characteristics are prohibited as they violate the fundamental rights and interests of data subjects, along with general decency. It goes without saying that there may be underlying privacy risk to a user who may be personally identified by their voice, in combination with other data collected by the app about that user.

Clubhouse therefore has a duty to ensure that these fundamental privacy values advocated by the European Union are respected. The app will have to comply with the requirements of the RGPD and ensure upstream and a posteriori control, via functionalities which provide mechanisms to block, signal or even remove malicious users.

If you have any questions regarding your privacy rights or in relation to compliance with the GDPR, please do not hesitate to contact us!

Likewise, let us know what you think about this new conversation platform and the phenomenon of influence economy! 

Article by Manon Coste @ Gerrish Legal, February 2020 / Cover photo by William Krause on Unsplash