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But it is socially acceptable that after installing an app or signing up for a service it gets to scrub all the data from the phone; contacts, photos, messages, relationships, locations, businesses, apps installed, calls, usage, all of it, then correlate it, classify it, generate profiles, predict behaviors and sell that information?

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Not at all. I’m saying that normal interactions have a degree of privacy to them, even when out ‘in public’. I do think that there are expectations of privacy in most interactions, yet somehow social media and advertising have completely broken this standard.