ABSTRACT
Major corporations began using predictive analytics as early as the mid-1990s when Chase Bank made transactional decisions in its mortgage portfolio using predictive technology developed by Dan Steinberg. Predictive analytics is different from forecasting. Forecasting makes predictions on a macroscopic level focusing on aggregate behaviors, while predictive technology delivers insights about individual behavior. Many issues must be considered regarding the use of predictive analytics and a possible infringement on individual rights to privacy. One concern is the ability of a company to predict with tremendous accuracy the occurrence of a significant life change before the individual's family, or even the individual may be aware of it. While the Consumer Privacy Bill of Rights was a starting point and not legally binding, the White House encouraged Congress to pass legislation applying the Consumer Privacy Bill of Rights to commercial sectors that are currently exempt from federal data privacy laws.
