Data Governance Research Group

One of the key elements in the realization of a digital society is (digital) data. For example, the Digital Agency also emphasizes "the realization of an environment in which diverse, high-quality, and sufficient amounts of data can be easily, safely, and reliably used to solve social issues and maintain and improve international competitiveness in our country. *
*Digital Agency, "Promoting Data Strategy," https://www.digital.go.jp/policies/data_strategy/

While the free distribution of data has led to the emergence of unprecedented businesses and enabled consumers to enjoy the convenience of new services, there are also concerns that large-scale platforms that make money by collecting large amounts of diverse personal data and using it for business purposes may be doing consumers a disservice. On the other hand, there are also concerns that large-scale platforms, which make money by collecting large amounts of diverse personal data for business purposes, may be doing consumers a disservice.

Specifically, large-scale e-commerce platforms analyze consumer attributes (age, gender, hobbies and preferences) and behavior patterns (so-called "profiling") based on individual consumer purchase histories of products and services and site browsing and clicking histories, identify target segments based on this analysis, and use the information for marketing purposes. This is an example of marketing that uses the personal data of consumers to identify target segments. This is also an issue of data governance, i.e., what rules should be in place to ensure that those who hold consumers' personal data use it appropriately in order to provide convenience to consumers while not undermining their rights and interests.

In addition, the commercial applications of profiling as described above include the social and political uses of profiling. For each, the following issues can be envisioned

(1) Profiling for commercial use
It may be argued that consumer purchasing behavior as a result of marketing by e-commerce companies using profiling was made through unfair inducement and not through legally valid, free decision-making
(2) Profiling for social use
In aptitude tests for employment and various qualification examinations, classification and prediction of individuals based on certain attributes and characteristics may cause bias and discrimination. There are also similar concerns about profiling by government agencies
(3) Profiling for political use
During elections, profiling may be used to unfairly manipulate public opinion by campaigning in favor of or against a particular candidate.

Various issues regarding data governance can be considered, and this study group will take up and discuss "Survey of profiling technologies in commercial, social, and political use of personal data, their merits and demerits, and issues for their appropriate use" as its first theme.

Chair:
Tsuneo Matsumoto (Professor Emeritus, Hitotsubashi University / Attorney at Law)
Committee Member:
Kaori Ishii (Professor, Faculty of International Information Studies, Chuo University)
Yoichiro Itakura (Partner, Attorney at Law, Hikari Sogoh Law Offices)
Ichiro Satoh (Professor, National Institute of Informatics)
Masako Wakae (Senior Writer, The Yomiuri Shimbun Tokyo Head Office)

[Report commissioned by the Data Governance Study Group]
AI Profiling in the EU Report [English ] [Japanese ]

1st meeting
July 30, 2024 19:30-21:00
The committee members presented their own concerns related to data governance, and after discussion, it was decided that the research theme would be "Appropriate Commercial, Social, and Political Use of Profiling". At the next meeting, it was decided to conduct interviews with industry participants on the business reality of Internet advertising, where profiling is widely used, and in parallel, to investigate the content of profiling regulations under EU law.

2nd meeting
September 12, 2024 18:30-20:00
Mr. Satoshi Niino, Managing Director of the Japan Interactive Advertising Association, gave an overview of the Internet advertising business and the challenges it faces. During the Q&A session and discussion that followed, participants exchanged opinions on the differences between countries in the settings of the management screen used when delivering targeted advertising, methods for regulating investment fraud and political advertising, and points to focus on if profiling were to be regulated.

3rd meeting
November 21, 2024 10:00-12:00
Mr. Yoshihiko Miyaichi, Representative Director of PIER1 Corporation, gave an explanation of profiling in digital marketing from a technical perspective. He explained the roles of the entities that handle Internet advertising (DSP/SSP) and the platforms that manage data related to Internet advertising (DMP/CDP), the handling of information, and the actual state of profiling.

4th meeting
January 17, 2025, 19:00-20:30
Among the multiple profiling regulatory laws in the EU, two core laws, namely the General Data Protection Regulation (GDPR) and the AI Law, were presented by David Socol, Assistant Professor at Hitotsubashi University. In his presentation, he gave a general overview of both legislations and an analysis of the regulatory landscape in which profiling is implemented in specific situations in the commercial, social, and political spheres.

5th Meeting
Wednesday, February 18, 2025, 19:00-20:30
In the previous issue, David Socol, Assistant Professor at Hitotsubashi University, gave us a general description of the profiling regulatory laws in the EU, namely (1) the General Data Protection Regulation (GDPR) and (2) the AI Law, and its profiling-related provisions. In the 5th session, Mr. Socol gave similar explanations on (3) Digital Services Act (DSA), (4) Digital Markets Act (MSA), (5) Consumer Rights Directive, (6) Unfair Trade Practices Directive, (7) Data Law, and (8) Commission Staff Working Document "Conformity Check of EU Consumer Law on Digital Fairness". He also explained about (7) Data Law, and (8) Commission Staff Working Document "Conformity Check of EU Consumer Law on Digital Fairness. Finally, he made recommendations on points to be considered when designing a system in Japan.

6th Meeting
Tuesday, March 11, 2025, 16:30-18:00
Based on the discussions in the study group, it was discussed whether profiling as defined in the GDPR is regulated under the Personal Information Protection Law and other laws and regulations in Japan, and if not, what kind of legal amendments are necessary. As a result, the study group decided to summarize and publish the results of the study group's discussion on (1) clarification of the definition of profiling, (2) introduction of regulations for automated decision making, (3) accountability of companies and organizations using profiling, and (4) necessity of clarification of the rights of data subjects, including the right to file objections. The committee decided to publish a summary of the results of the study group's deliberations.