Understanding the psychology of user decision-making is one thing. Nudging them toward privacy-friendly choices is another. Vivek Kumar Agarwal, privacy program manager at Meta Platforms, shares the behavioral economics strategies to watch out for and the basics of designing compliance-friendly systems that prioritize user privacy.
Albert Einstein once said, “The important thing is not to stop questioning. Curiosity has its own reason for existence.” These words of wisdom not only apply to scientific inquiry but also when designers create systems and products that prioritize user privacy.
In the digital age, trust is everything. Betrayal by a company, especially when it involves mishandling user data, could lead to a devastating blow to reputation and finances.
Privacy by Design (PbD) is a framework for designing systems and products that prioritize user privacy. However, PbD relies on users making informed decisions about their privacy settings, which can be influenced by cognitive biases and heuristics.
Understanding user behavior & privacy choices
Behavioral economics is the study of how psychological, social and emotional factors influence economic decisions. In the context of PbD, behavioral economics can help designers understand how users make decisions about their privacy settings. Users tend to stick with default settings, even if they compromise their privacy, due to a phenomenon known as default bias. They are also influenced by the way information is presented, a concept known as framing effects, and fear losses more than they value gains, which is referred to as loss aversion.
Nine out of 10 users are prone to making suboptimal privacy choices due to cognitive biases and heuristics, according to Daniel Kahneman’s “Thinking, Fast and Slow.” Common red flags that can help designers identify areas where users may need a nudge include unexpected changes to privacy settings or suspicious data-sharing activities. Users may also claim they didn’t intend to share their data or didn’t understand the implications of their privacy settings, or exhibit behavior that indicates they are not aware of the implications of their privacy settings.
Functional Privacy: A New Concept to Simplify Legal Analysis
In-house counsel & practicing attorneys face challenges as advancement of technology outpaces regulatory response
Read moreDetailsDesigning privacy-friendly systems
As designers, it is essential to demonstrate a commitment to strong leadership that upholds a culture of integrity, ethical conduct and prevention of any kind of data misuse. Create a culture of open communication where users feel comfortable raising concerns and reward users for making informed decisions about their privacy settings.
Remember that no system is completely foolproof, but implementing robust PbD, being aware of warning signs of suboptimal privacy choices and displaying ongoing vigilance and participation in the design process can mitigate most risks.
You don’t have to micromanage, but you do have to manage. As Einstein said, curiosity has its own reason for existence. To design compliance-friendly systems, designers should simplify complex choices by breaking down complex privacy decisions into simple, manageable options. They should also make privacy visible by using clear, transparent language to explain data collection and use practices. Providing feedback and control is also crucial, as is giving users feedback on their privacy settings and providing easy-to-use controls to adjust them.
Designers should also test and iterate, continuously checking and refining PbD to ensure it is effective in promoting privacy-friendly choices. Finally, they should use data analytics to understand user behavior and identify areas where PbD can be most effective.
Putting the framework into action
A case study was conducted to test the effectiveness of this framework. A mobile app was designed that used nudges to encourage users to prioritize their privacy. The app used a combination of visual cues, feedback mechanisms and social norms to nudge users toward privacy-friendly choices. The results showed that users who received the nudges were more likely to prioritize their privacy than those who did not.
Future research should focus on refining and expanding this framework, exploring new nudges and strategies for promoting privacy-friendly choices. Additionally, researchers should investigate the long-term effects of nudges on user behavior and explore the potential for nudges to be used in combination with other CbD strategies.
Conclusion
By understanding the psychological, social and emotional factors that influence user decision-making, designers can create more user-centric designs that prioritize user privacy and compliance. By leveraging nudges and other behavioral economics strategies, designers can encourage users toward privacy-friendly choices, ultimately protecting user data and promoting trust in digital technologies.
Vivek Kumar Agarwal is a privacy program manager at Meta Platforms with a Fellow of Information Privacy certification. He authored “Invisible Threads,” a privacy guide and is experienced in building and implementing comprehensive privacy programs, specializing in third-party risk management. 
