Privacy-enhancing technologies

Privacy-enhancing technologies (PET) are technologies that embody fundamental data protection principles by minimizing personal data use, maximizing data security, and empowering individuals. PETs allow online users to protect the privacy of their personally identifiable information (PII), which is often provided to and handled by services or applications. PETs use techniques to minimize an information system's possession of personal data without losing functionality. Generally speaking, PETs can be categorized as either hard or soft privacy technologies.

The objective of PETs is to protect personal data and assure technology users of two key privacy points: their own information is kept confidential, and management of data protection is a priority to the organizations who hold responsibility for any PII. PETs allow users to take one or more of the following actions related to personal data that is sent to and used by online service providers, merchants or other users (this control is known as self-determination).^{[clarification needed]} PETs aim to minimize personal data collected and used by service providers and merchants, use pseudonyms or anonymous data credentials to provide anonymity, and strive to achieve informed consent about giving personal data to online service providers and merchants.

In privacy negotiations, consumers and service providers establish, maintain, and refine privacy policies as individualized agreements through the ongoing choice among service alternatives, therefore providing the possibility to negotiate the terms and conditions of giving personal data to online service providers and merchants (data handling/privacy policy negotiation). Within private negotiations, the transaction partners may additionally bundle the personal information collection and processing schemes with monetary or non-monetary rewards.

PETs provide the possibility to remotely audit the enforcement of these terms and conditions at the online service providers and merchants (assurance), allow users to log, archive and look up past transfers of their personal data, including what data has been transferred, when, to whom and under what conditions, and facilitate the use of their legal rights of data inspection, correction and deletion. PETs also provide the opportunity for consumers or people who want privacy-protection to hide their personal identities. The process involves masking one's personal information and replacing that information with pseudo-data or an anonymous identity.

Privacy-enhancing technologies can be distinguished based on their assumptions.

Soft privacy technologies are used where it can be assumed that a third-party can be trusted for the processing of data. This model is based on compliance, consent, control and auditing.

Example technologies are access control, differential privacy, and tunnel encryption (SSL/TLS).

An example of soft privacy technologies is increased transparency and access. Transparency involves granting people with sufficient details about the rationale used in automated decision-making processes. Additionally, the effort to grant users access is considered soft privacy technology. Individuals are usually unaware of their right of access or they face difficulties in access, such as a lack of a clear automated process.