Databases and Data Warehouses 249

Chapter 7 Databases and Data Warehouses 249

Also, companies are allowed to share information record with other doctors or nurses in the clinic, with unaffiliated companies if they have service or

but they do not have to agree to do what you ask. marketing agreements with those unaffiliated

• The Upside. In spite of the downside of collection companies.

of personal data, there is also a positive side. Data- Consider this sentence from the privacy policy

base technology enables companies to provide us of one bank: “We recognize that an important ben-

with better and faster services. It also makes the efit for our customers is the opportunity to receive

market more competitive. Small firms often cannot offers for products and services from other compa-

afford the great expense of data collection. For

nies that may work with us.” Consumer advocates much less money, they can purchase sorted data— read the sentence this way: “Whether you like it or

the same data that is available to the industry

not, we will share your information with other leader. So, the wide availability of data contributes companies, and they can do with it whatever they

to a more egalitarian and democratic business

wish, including bombarding you with unsolicited environment. The beneficiaries are not only ven- mail and e-mail.”

dors but also consumers, who can purchase new and cheaper products.

• Our Health Online. Allowing medical staff and

And while many of us complain that these

pharmacists to share patient medical information might help them help us. Imagine being injured on

huge databases add to the glut of junk mail and

a trip thousands of miles from your home. If the spam, better information in the hands of marketers doctor treating you can immediately receive infor-

might actually save consumers from such

mation about your allergies to certain medications, annoyances. After all, those annoying communica- it might save your life. However, any electronic

tions are for products and services you don’t need. record residing on a database that is connected to

With more specific information, marketers can tar-

a public network is potentially exposed to unautho- get only those individuals that might be interested rized access by people who do not have a legiti-

in their offerings. While you shop, special tracking mate need to know.

software can tell the online business, at least indi- The Health Insurance Portability and Account-

rectly, what you do not like about the site. This

ability Act of 1996 (HIPAA) is the U.S. federal law enables businesses to improve their services. For that was enacted to—among other purposes—

example, many online retailers discovered that a mandate how health-care providers and insurance

hefty proportion of shoppers abandoned their vir- firms are to maintain records and disclose informa-

tual shopping carts just before the final purchase. tion so that patient privacy is not violated. The law

Analysis of collected information discovered that restricts who accesses your medical records. Yet,

some people wanted to know the handling and

even this law recognizes the inability of organiza- shipping charges before they charged their credit tions to ensure patient privacy. For example, you

cards. Now, most online retailers provide clear

can ask your doctor not to share your medical

shipping information and charges up front.