For something to be ethical, it must align with the principle beliefs of who or whatever body is judging it. With this in mind, there is a lot of ambiguity surrounding what is and is not ethical. When talking about data collection, it can be a very complicated matter.
Read the Warning Signs
Every app, website, and software provide terms of service, privacy policy, or cookies allowance. The thing is, not too many people actually read these, let alone wonder what is being done with the information they are handing over. But ultimately, if consent is given, then that information is collected –no matter how personal– is then ethically sourced.
How is Data Used
One of the key impacts of the data collection companies use is for better user experience. The more information the company has, the more tailored the services, products, and experiences can be. For example, if a company sees that the majority of their sales occur on Instagram in the new market place, they will do more business there. Or, if website views are mostly mobile, then they will want to adjust their website to be optimized for a narrower view. Lastly, if the company is looking to possibly diversify, seeing what common overlaps in buyer personas there are can provide the opportunity to try something new that the audience is more likely to support.