Privacy concerns: Don't underestimate them

Apple is getting some well-deserved heat for a new feature contained in iTunes 6.0.2, and the furor contains a lesson for anyone who handles customer data. What were they thinking? We're not really collecting data. We're just momentarily using it and then discarding it. And besides, that data is for the consumer's benefit. No need to ask permission....

Someone at Apple screwed up, and to their credit they backed down and took steps to inform consumers of the data collection and allow them to opt in. But still, the horse is out of the barn. Once you're accused of creating spyware, it's hard to undo that reputation.

There's a simple lesson to be learned about not alienating customers: If you collect their information through a Website or online application, make this explicitly clear to them. Tell them what data you gather, why, and how it's used. Don't assume that they'll believe the benefits of undisclosed data gathering outweigh their individual feelings about  privacy.