Privacy Policies and the use of Personal Data as Strategic Variables for Entrepreneurs in the Health Apps Market

Abstract

Background: Health apps cover many areas and functions and are easily available. However, massive use of personal data has security and privacy risks. Although there is the widespread idea that privacy is important for app users, their efforts to protect their personal data are usually low or none. Evidence from online services show that privacy protection is still an issue, and many app developers fail on the disclosure of a privacy policy, even if it is mandatory. This is evident for health apps also, despite the sensitivity of personal health data. Entrepreneurs must choose an adequate monetization model for their health app business, including privacy concerns.

Objectives: We intend to explain how the availability of the privacy policy of a health app and how the decision of an app to explicitly inform users on the use of personal data for micro-segmentation relates with diverse revenue sources, treating those variables as business strategic variables.

Methods: We performed a cross-sectional study of health apps available in Portugal. We use logit and probit regression models to establish cause-effect relations between variables.

Results: If a health app is downloaded for free or if it includes in-app purchases, it will be more probable to have a privacy policy and to explicitly inform users on the use of personal data. However, the inclusion of ads within the app is not relevant. We conclude that the disclosure of privacy policies and the use of personal data cannot be disconnected from the business model of the app.