The Lesson from Uber: Data Privacy Is Not a Laughing Matter

Uber executive Emil Michael likely never heard the phrase, “nobody likes a bully.” At a recent Manhattan dinner event, he suggested that the ride-sharing company use some of its funding reserves to dig up information on journalists who are critical of the company.

According to Buzzfeed, Michael specifically alluded to a recent article by Sarah Lacy, the editor of the Silicon Valley website PandoDaily, who criticized the start-up for “sexism and misogyny.” To combat the negative press, he suggested Uber should take a page from political campaigns and spend “a million dollars” to hire four top opposition researchers and four journalists to look into reporters’ personal lives and families.

While Michael may have been kidding, his remarks have forced the company to do some serious crisis management. Michael later released a statement that read: “The remarks attributed to me at a private dinner — borne out of frustration during an informal debate over what I feel is sensationalistic media coverage of the company I am proud to work for — do not reflect my actual views and have no relation to the company’s views or approach. They were wrong no matter the circumstance and I regret them.”

The story gained traction, in part, because this is not Uber’s first black mark when it comes to data protection and privacy. According to Buzzfeed, another Uber representative accessed the profile of a reporter and tracked her ride to an interview. Meanwhile, Forbes reports that the company often uses a “God view” tool at events to show how many Uber rides are active in a city. If true, the actions would violate the company’s stated privacy policies.

In the wake of Emil Michael’s comments, Uber was also forced to officially deny that it conducts “oppo research.” In response to a critical letter from U.S. Senator Al Franken, which suggested a “troubling disregard for customers’ privacy, including the need to protect their sensitive geolocation data,” the company also publicly announced that it has hired well-known privacy experts to review its policies and procedures.

Uber is known for taking a stand, whether the ride-sharing company is confronting regulators, competitors, or the taxi industry. CEO Travis Kalanick even has a name for it — “principled confrontation.” While his passion and “take no prisoners” approach may have kept the company alive and ultimately helped it amass billions of dollars in funding, the company has also received criticism for thinking it is above the law.

With respect to data privacy, losing the public trust could spell doom for a successful start-up. According to a recent survey by Pew Research, more than 90 percent of respondents expressed concern about what companies do with their personal information.

If you have any questions about this post or would like to discuss the issues involved, please contact me, Fernando Pinguelo, or the Scarinci Hollenbeck attorney with whom you work. To learn more about data privacy and security, visit eWhiteHouseWatch (http://ewhwblog.com).