data.day

The RFP That Makes Data Brokers Leave the Room

Most 'Analytics' features are actually surveillance devices. We added a 'Poison Pill' clause to our RFPs that forces vendors to admit if they are selling us out.

The “Free” Analytics Module

The proposal looked incredible. The vendor offered a “Smart City Dashboard” that would visualize traffic patterns, pedestrian density, and even “mood sentiment” from social media.

The cost? Suspiciously low.

“How do you sustain this pricing?” I asked during the Q&A session.

“We leverage the aggregate data to provide insights to the global market,” the representative said, using the corporate dialect for espionage.

He was telling me that he intended to place a tracking beacon in the pocket of every Citizen using our bus system, and then sell their movement patterns to real estate developers and insurance companies.

“This is unacceptable,” I said. “We are a municipality, not a lead generation agency.”

The Trap: The Data Broker inside the Trojan Horse

Many modern software vendors are actually data brokers wearing a SaaS mask. They offer “Community Editions” or “Enhanced Analytics” for free or at a deep discount.

The trap is hidden in the Terms of Service under “Right to Use Data.” They claim rights to:

  • “Improve services” (Train their AI).
  • “Create aggregate benchmarks” (Sell industry reports).
  • “Share with trusted partners” (Sell to advertisers).

If we sign this, we are complicit. We are forcing the Citizen to submit to surveillance in order to access public services. That is a violation of the social contract.

The Treaty: The “Monetization Declaration”

To filter out these predators, we now include a “Poison Pill” in every RFP. It is a mandatory declaration that must be signed by an officer of the company.

The Clause:

“The Vendor certifies that no data collected, processed, or derived from this contract shall be used for any purpose other than the direct delivery of the service to the Municipality. This includes a prohibition on ‘anonymized’ aggregation, AI model training, or sale to third parties. Any breach of this clause triggers an immediate penalty of [10x Contract Value].”

The effect is immediate.

The vendors who view us as a customer sign it without hesitation. The vendors who view us as a resource mine withdraw from the process. They cite “strategic misalignment” or “technical constraints.”

Good. We do not want to align with those who strip-mine the privacy of the Public. The RFP is not just a request for price; it is a request for integrity.

FAQs

What is 'Secondary Use' of data?

Primary use is the service we pay for (e.g., routing a bus). Secondary use is the vendor analyzing that route to sell 'traffic insights' to third parties.

Don't they anonymize the data?

There is no such thing as anonymized location data. With three data points, I can identify any Citizen. 'Anonymized' is a legal fiction.

Will this increase the price?

Yes. Honest software costs money. Spyware is often cheap because the Citizen pays with their privacy.