Personal Data as Currency: Navigating the Economics Behind Free Digital Services

Abstract

The 'free' online services are hardly free in the contemporary digital ecosystem. Instead, the personal information of users is the currency. As this paper illustrates, personal data has become a de facto currency; that is, it is being collected, aggregated, and monetized through targeted advertising, 'dynamic pricing,' and data brokerage. This paper critically analyses the trade-off between privacy and convenience, looks at regulatory responses such as the European Union's General Data Protection Regulation (GDPR) and California's Consumer Privacy Act (CCPA), and discusses the ethical framework that covers independence, fairness, and duties of information dignity. The paper offers practical ways to lessen the privacy risks while retaining the advantage of personalized digital experiences. By unpacking the economic logic of data commodification, this study offers policymakers, businesses, and consumers a map for a more transparent, equitable, and respectful digital marketplace.

Keywords: economics of privacy, data privacy, free services, data economics, online services