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XR – including AR, VR, and their emerging convergence in MR – is gradually becoming part of everyday life for many people. From immersive gaming experiences to retail apps that let users virtually try on clothes, it enhances real-world interactions with digital overlays. At its core, XR depends heavily on data to collect information and deliver personalized, real-time experiences.
However, this reliance raises serious questions about privacy and transparency. Many users need to be aware of how companies collect, share, or monetize their information. That puts the spotlight on XR companies to prioritize clear communication and explicit consent. Addressing these concerns lets the XR industry build trust and ensure innovation moves forward without compromising user rights.
The Role of Data Brokers
Data brokers specialize in collecting, analyzing, and selling user details, often without direct interaction with the individuals they profile. They aggregate information from various sources to build detailed profiles valuable to advertisers and tech platforms. In XR, these profiles have specific data types, such as location, biometrics, and behavioral patterns.
XR devices have the potential to collect a wealth of biometric information, and some already do — tracking eye movements, heart rates, and facial expressions — to create immersive, personalized experiences. While this enhances its capabilities, it also introduces significant privacy concerns, as many of these records are highly sensitive and vulnerable to misuse.
This dynamic raises ethical questions about transparency and consent. With AR and VR pushing the boundaries of immersive experiences, the stakes for privacy are higher than ever.
Legal Considerations for Data Use
Data privacy laws like the FDPR in Europe and the CCPA in California shape how companies collect and use personal information, and they’re setting a high bar for transparency and user rights. The GDPR requires businesses to get explicit consent before collecting information and clearly explain how they will use it. Similarly, the CCPA allows users to access, delete or opt out of collection practices.
These regulations pose unique challenges for XR platforms, as immersive technologies often rely on real-time metrics like location and biometrics, making compliance more complex. Adding to the concern, around 98% of Americans already have personal information exposed on people search sites, which raises the stakes for platforms handling sensitive data. XR companies must navigate these laws carefully and ensure seamless experiences while upholding transparency and protecting user privacy.
Ethical Implications of Data Collection
The over-collection of personal details in XR raises severe concerns about privacy, surveillance, and manipulation. Platforms often collect vast amounts of sensitive information — biometrics, real-time location, and user behavior — which, if misused, can be leveraged by third parties or advertisers to influence decisions or invade privacy. For example, regulations like China’s Personal Information Law limit what companies can see or do with user data. However, they don’t restrict government access, revealing vulnerabilities in such frameworks.
This makes it essential for XR companies to go beyond legal compliance and take ethical responsibility for protecting autonomy. Prioritizing transparency, collecting only essential data and empowering users with control over their information can balance innovation and privacy and earn trust.
Best Practices for Transparency and User Content
Transparency and explicit consent build trust in the XR industry. As platforms increasingly rely on personal details to deliver immersive experiences, users must feel confident about how third parties collect, store and use their records. These best practices can help companies secure consent effectively:
- Use plain language in policies: Avoid technical jargon and present privacy policies in simple, straightforward terms users can easily understand.
- Implement granular consent options: Allow users to opt in or out of specific collection practices, such as location tracking or biometric data.
- Adopt a data minimization approach: To reduce risks and maintain trust, collect only the input necessary for the functionality of the AR experience.
- Ensure accessibility of privacy settings: Make it easy for users to access and adjust their preferences within the app or device interface.
- Conduct regular audits: Periodically review practices to ensure compliance with privacy laws and ethical standards.
These practices can create more transparent and user-friendly experiences. They foster trust while adhering to ethical and legal standards.
Increasing User Trust Through Transparency
User trust drives the adoption of XR platforms, as these technologies rely on personal data to create tailored experiences. Trust is necessary for customers to engage with apps or devices, slowing growth in the industry. A recent study found that 80% of U.S. adults consider data policies a significant factor in staying loyal to a brand, highlighting the business value of ethical practices.
Prioritizing user privacy can strengthen relationships with their audiences, encouraging long-term loyalty and repeat engagement. Additionally, transparent policies and robust protection reduce legal risks, helping brands avoid fines and reputational harm.
Building Trust Through Ethical Innovation
XR companies must navigate complex ethical and legal challenges, from protecting sensitive biometric data to complying with global privacy regulations. Leading with transparency and integrity in business practices can help build user trust, drive adoption, and set a standard for responsible innovation.
Editor’s note: for more on responsible practices in XR data collection, privacy, and safety, please see the ongoing work of XR Safety Intelligence (XRSI) and our interview with its founder, Kavya Pearlman.
Devin Partida is Editor-in-Chief at ReHack Magazine and editorial contributor at AR Insider. See her work here and follow her @rehackmagazine.
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