New York Post

FIRM RESISTANCE

Companies wary of WhatsApp privacy issues

- By CLAIRE ATKINSON catkinson@nypost.com

It’s not just privacy advocates who are freaking out over Facebook’s decision to extract user data from its popular WhatsApp messaging service.

The move is also giving corporate America pause when it comes to setting up shop on the world’s biggest messaging platform.

Companies are worried about how it might affect their efforts to use the free messaging platform to communicat­e with customers while also protecting confidenti­al corporate and customer data.

WhatsApp said earlier this year it would start testing business accounts as a way for banks, airlines and other businesses to send one-way messages to customers. That could mean a bank alerting you to a fraudulent transactio­n or an airline informing you about a delayed flight.

Businesses also envision wading deeper onto the platform with better tools, such as sending mass notificati­ons and using “chat bots,” or artificial intelligen­ce, to talk to customers.

Last week, Facebook said WhatsApp would begin sharing data about users to better target ads on Facebook and Instagram unless its users opt out.

“From a personal perspectiv­e, you look for a plumber and some ads show up, no big deal,” said David Dias, an insurance broker and founder of Insurance Thought Leadership. “But the whole notion of going deep, you have to make sure there isn’t behavior data and that it isn’t being improperly used.

“Think about banking, ca- ble and airlines and the informatio­n that is being exchanged. That’s got to be safe.”

Dias also points out Facebook isn’t a business that has to adhere to a strict regulatory environmen­t. “What they have access to, it’s very frightenin­g,” he added.

Facebook’s revisions to WhatsApp’s privacy policy, which it said it wouldn’t change when it acquired the service for $22 billion in 2014, resulted in complaints to the Federal Trade Commission on Monday from groups including the Electronic Privacy Infor- mation Center (EPIC).

Claire Gartland, a consumer protection counsel attorney at EPIC, said the changes are a violation of users’ initial understand­ing that their phone numbers wouldn’t be shared.

“We’ll be keeping a close on eye on whether the FTC launches an investigat­ion,” Gartland told The Post.

While Facebook’s flipflop is alarming to some, it isn’t that surprising.

“WhatsApp was founded on the principle of anonymity, it’s part of its DNA,” said tech expert Shelly Palmer. “No one knows who you are, but identifica­tion is critically important to Facebook.”

The controvers­ial decision is ringing alarm bells, not just in DC in the European Union.

The move may force businesses to explore other avenues beyond Facebook and WhatsApp as a way to connect with consumers more securely.

Messaging platforms for business are huge in China, with TenCent’s WeChat one of the biggest, but the idea of chat bots responding to customer queries is relatively new.

Among those looking to grow in business messaging are Slack; concierge service GoButler; and Pypestream, which just received a patent for its technology.

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