Report Compiled by the Personal Data Working Group under the IT Integration Forum

Note: Personal data includes not only the personal information stipulated in the Act on the Protection of Personal Information but also data in a broad sense, not containing any identification information of an individual, such as positional information or buying history.

Triggered by the dissemination of sensor networks and mobile terminals, the dramatic reduction of communication costs, and other factors, societies in which a large variety of data is generated and distributed on a global basis are about to emerge in every industrial field, such as manufacturing, retailing, distribution, medical care/health care, and agriculture. Anticipating such new societies, it is important for Japan to create new value using data and enter new business fields so as to survive the global market competition in the future.

However, Japanese companies have been left behind in their efforts to utilize data for creating new business and other activities. Among various possible causes, a challenge concerning privacy for personal data is a major concern. Specifically, the gap between consumers and businesses in their perception of businesses' acquisition of consumers' personal data is a controversial issue.

Considering the situation, METI established the Personal Data Working Group under the IT Integration Forum in November 2012. The working group has discussed and studied certain approaches to build a new relationship of trust between businesses and consumers for utilizing personal data.

The working group focused on three points as approaches to establishing a relationship of trust: [i] user-friendly descriptions, [ii] utilization of information-providing organizations, and [iii] selection of disclosable information by consumers. Then it discussed the ideal ways to build such relationships and compiled the results into a report.

1) Methods and approaches to user-friendliness

For most of the recent troubles related to personal data that are raised between consumers and businesses, such businesses are socially criticized since consumers consider that the businesses utilize consumers' personal data in a fashion that betrays consumers' trust in them. To solve this problem, it is necessary to provide information with consumers not in the redundant, unclear descriptions often seen in terms of use, but in a user-friendly approach so as to facilitate consumers' understanding of such information. In this context, the working group organized two aspects, namely, "matters to be described" and "styles of expression" that businesses should take note of from the viewpoint of user-friendliness.

2) Utilization of information-providing organizations

One of the factors that disrupt the building of a relationship of trust between consumers and businesses is insufficient access to information by consumers as well as businesses. To eliminate such insufficiency of information from both sides, the working group considered that it is useful to utilize organizations that provide consumers and businesses with required information. It discussed such organizations that provide consumers with information on the credibility of businesses and those that provide businesses with information on how to handle personal information and other elements, and it compiled the results of discussions, such as the roles and abilities that are required of such organizations.

3) Selection of disclosable information by consumers

Currently, consumers often face the decision of which of the two options to select: [i] disclosing their personal information that is required by businesses according to the terms of use or privacy policies that the businesses stipulate unilaterally; or [ii] not using any services of such businesses. However, the working group considered that a framework to provide consumers with services according to the degree to which consumers determine themselves to disclose their information will be effective in enhancing consumers' satisfaction and acceptance. The working group organized the ideal approaches to this goal.

May 10, 2013

Information Economy Division, Commerce and Information Policy Bureau