Data Retention and the Panoptic Society: The Social Benefits of Forgetfulness

Modern information systems not only capture a seemingly endless amount of transactional data, but also tend to retain it for indefinite periods of time. We argue that privacy policy must address not only collection and access to transactional information, but also its timely disposal. One unintended side-effect of data retention is the disappearance of social forgetfulness. Social forgetfulness allows individuals a second chance, the opportunity for a fresh start in life. We examine three domains in which social policy has explicitly recognized the importance of such a principle: bankruptcy law, juvenile crime records, and credit reports. In each case, we frame the issue not solely in terms of individual privacy protection, but rather in terms of the social benefits of forgetfulness. We examine how different policy approaches to privacy might handle the retention of data and propose a general framework for constructing retention policies. The broad conclusion of the paper is that data retention and disposal should be addressed as a fundamental characteristic of information, not in piecemeal fashion, or as an afterthought.