← VCE Data Analysis

Ethical issue: lack of transparency

When people are not told what data is collected, how it is used or how a conclusion was reached, such as hidden data collection, unexplained AI decisions or unclear privacy policies.

Part of: VCE Applied Computing - U1O1 - Data analysis — Module 49, VCE Data Analytics - U4O2 - Cyber Security: Data Security — Module 141, ACARA Digital Technologies Years 9–10 — Privacy Principles and Digital Footprints — Module 56, QCE Digital Solutions Unit 4 — Digital Methods for Exchanging Data — Module 76, WA Computer Science ATAR Year 11 — Cyber Security — Module 166

Understanding Ethical issue: lack of transparency in VCE Data Analysis

What it does: The applicant cannot see how the AI reached its conclusion, so the decision lacks transparency. A policy that users cannot understand does not tell them how their data is used, which is a lack of transparency. Visitors have not been told that data is being collected, so this is hidden data collection. Being open about what is collected and how it is used lets people make informed choices. Explaining the factors behind an AI decision makes it transparent and lets people check whether it was fair.

Common mistakes: An empty message tells the user nothing, so the location tracking stays hidden. The notice should say what is collected, e.g. msg ← "Location tracked". Only the decision is shown, so the AI decision is unexplained. The reason must be shown too: show(decision, reason).

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This module's key terms are also in a printable crossword (Modules 38–54) and word search (Modules 25–54).

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Learning
Duo
A free app tracks a user's location in the background and never tells them. Which ethical issue is this?
Lack of transparency (hidden data collection)Good transparency because the app works well
Matches
Privacy policy: "We may use your data for business purposes and share it with partners."
↓
The wording is vague. It does not say which data is collected, what the business purposes are or who the partners are. It should clearly list the data, the purposes and who it is shared with.
Applying
Meanings
Term
Lack of transparency
Meaning
When people are not told what data is collected, how it is used or how a conclusion was reached, such as hidden data collection, unexplained AI decisions or unclear privacy policies.
Practice
Collected: name, email, location
Testing
Gaps
Lack of is when people are
Check Answer
Spots
1msg ← ""
2show(msg)

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Quick Questions

1. A free app tracks a user's location in the background and never tells them. Which ethical issue is this?
A. Lack of transparency (hidden data collection) ✓
B. Good transparency because the app works well
Lack of transparency means people are not told what data is collected. Secretly tracking location is hidden data collection.
2. Which statement best describes lack of transparency?
A. People are not told what data is collected, how it is used or how a conclusion was reached ✓
B. Data is stored in a format that is too large to open
Transparency is about being open and clear. Lack of transparency is about hidden or unexplained data practices, not file size.
3. A bank's AI rejects a loan and cannot explain why. What is the transparency problem?
A. A strong password policy
B. An unexplained AI decision ✓
The person cannot see how the AI reached its conclusion. This is an unexplained AI decision.
4. Which privacy policy shows a lack of transparency?
A. A 40-page policy full of vague legal wording that hides how data is shared ✓
B. A short policy in plain English listing what data is collected and why
Unclear privacy policies make it hard for users to understand what happens to their data. Plain, specific wording supports transparency.
5. True or false: A website collecting browsing data through cookies without telling visitors is an example of lack of transparency.
A. False
B. True ✓
Visitors have not been told that data is being collected, so this is hidden data collection.

Match the Pairs

Lack of transparency → People are not told what data is collected, how it is used or how a conclusion was reached
Hidden data collection → An app quietly records a user's location or browsing without clearly telling them
An AI system rejects a loan application but gives the applicant no reason for the decision → Unexplained AI decision
A privacy policy is 40 pages of legal jargon, so users cannot tell how their data will be used → Unclear privacy policy
Privacy policy: "We may use your data for business purposes and share it with partners." → The wording is vague. It does not say which data is collected, what the business purposes are or who the partners are. It should clearly list the data, the purposes and who it is shared with.
AI result: "Application denied." (no further information shown) → The result gives no reasons, so the person cannot understand or question the decision. It should explain the main factors that led to the outcome.

Key Term

Lack of transparency
When people are not told what data is collected, how it is used or how a conclusion was reached, such as hidden data collection, unexplained AI decisions or unclear privacy policies.

Fill in the Blanks

1. Lack of transparency is when people are not told how their data is used.
Hint: Type the name of this ethical issue, meaning being open and clear about data use.
2. Hidden data collection: data is gathered without the person knowing.
Hint: Type the word that shows the person is not aware or informed.
3. Unexplained AI decisions: people cannot see how a conclusion was reached.
Hint: Type the abbreviation for the technology that makes the decision.
4. An unclear privacy policy hides how data is collected and used.
Hint: Type the name of the document that should explain how an organisation handles personal data.
5. To improve transparency, tell users what data is collected and why.
Hint: Type the past-tense verb for gathering data from users.

Spot the Error

Question 1
A msg ← ""
B show(msg)
C IF agree = TRUE THEN
D collect(location)
E ENDIF
Line A — An empty message tells the user nothing, so the location tracking stays hidden. The notice should say what is collected, e.g. msg ← "Location tracked".
Question 2
A decision ← ai_decide(loan)
B reason ← explain(decision)
C show(decision)
Line C — Only the decision is shown, so the AI decision is unexplained. The reason must be shown too: show(decision, reason).
Question 3
A terms ← list_data_used()
B policy ← jargon(terms)
C publish(policy)
Line B — Writing the policy in jargon makes it unclear to users. It should be written in plain language: policy ← plain_text(terms).
Question 4
A IF feature = "photo" THEN
B collect_silently(camera)
C use(camera)
D ENDIF
Line B — Collecting data silently is hidden data collection. The program should ask for consent first with ask_consent(camera).
Question 5
A request ← ask_what_is_held(user)
B IF request = TRUE THEN
C refuse(request)
D ENDIF
Line C — Refusing the request stops the user from finding out what data is held about them, which is a lack of transparency. It should send(user_data).

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