When we talk about “fiduciary duty,” we usually refer to a relationship where one party is legally obligated to act in the best interest of another—such as a trustee managing a trust. But in today’s digital age, a new question is emerging: Should online platforms like Google and Facebook be held to a similar standard when it comes to user data?
These platforms collect vast amounts of personal information. And while data can be used to enhance user experience, it’s often leveraged for purposes that may not align with users’ best interests—think targeted advertising, algorithmic manipulation, or selling access to third-party advertisers.
In response, global jurisdictions like the European Union have passed sweeping privacy laws, such as the GDPR, aimed at protecting personal data and curbing misuse. One proposed solution gaining traction is the idea of treating platforms as information fiduciaries—entities that owe a duty of care, loyalty, and confidentiality to their users.
Designating tech companies as fiduciaries would legally require them to use user data only when it benefits the user. It would mean prioritizing data security, minimizing exploitation, and being transparent about how personal information is used. In theory, it’s a powerful tool for preventing financial fraud, identity theft, and data breaches—all of which erode consumer trust and put businesses at risk.
So far, the U.S. has not adopted any major legislation establishing “information fiduciary” duties for internet platforms. But as data privacy concerns grow, it may be an important legal framework to consider.
At Lord & Lindley, we help creators, businesses, and innovators navigate the complex responsibilities that come with fiduciary relationships. Whether you’re acting as a fiduciary, appointing one, or wondering if someone has breached that duty—we’re here to help. To learn more or schedule a consultation, call us at (704) 457-1010 or visit www.lordlindley.com.