Privacy Issues
With the passing of the Can Spam Act in 2005, it became illegal in the United States to send any message to the end user without the end user specifically opting-in. This put an additional challenge on LBS applications as far as "carrier-centric" services were concerned. As a result, there has been a focus on user-centric location-based services and applications which give the user control of the experience, typically by opting in first via a website or mobile interface (such as SMS, mobile Web, and Java/BREW applications).
The European Union also provides a legal framework for data protection that may be applied for location-based services, and more particularly several European directives such as: (1) Personal data: Directive 95/46/EC); (2) Personal data in electronic communications: Directive 2002/58/EC; (3) Data Retention: Directive 2006/24/EC. However the applicability of legal provisions to varying forms of LBS and of processing location data is unclear.
One implication of this technology is that data about a subscriber's location and historical movements is owned and controlled by the network operators, including mobile carriers and mobile content providers.
A critical article by Dobson and Fisher discusses the possibilities for misuse of location information.
Beside the legal framework there exist several technical approaches to protect privacy using privacy-enhancing technologies (PETs). Such PETs range from simplistic on/off switches to sophisticated PETs using anonymization techniques, e.g., related to k-anonymity. Today, only few LBS offer such PETs, e.g., Google Latitude offers an on/off switch and allows to stick one's position to a free definable location. Additionally, it is an open question how users perceive and trust in different PETs. The only study that addresses user perception of state of the art PETs is. Another set of techniques included in the PETs are the Location obfuscation techniques, which slightly alter the location of the users in order to hide their real location while still bein able to represent their position and receive services from their LBS provider.
Read more about this topic: Location-based Service
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