The European Commission has published a detailed report assessing the "economic benefits of privacy-enhancing technologies", known as PETs. The study, authored by consultancy London Economics, sets out a framework for understanding PETs and how they are deployed, and gives the results of an extensive survey into the use of PETs, their perceived costs and benefits, and the role played by public authorities in the deployment of PETs. PETs are defined as data security technologies that are used to enhance privacy, though the report notes that some technologies can be used either to enhance, or reduce privacy.

The report finds there are many PETs, and their benefits are both technology-specific and application-specific. Because of the complexity of PETs and the circumstances in which they are used, the report notes that "the net economic benefit of PETs’ deployment needs to be assessed on a case-by-case basis". The report finds under-deployment of PETs, because there is little demand for them from individuals, and because data controllers see PETs as placing a limitation on their use of personal data that has been collected. There is greater demand for the deployment of PETs in the private sector.

The study includes case studies on GENOMatch, a system designed to protect the privacy of individuals participating in pharmacogenetic studies; on a not-yet-implemented scheme for pay-as-you-drive car insurance; on the provision of "pseudonymisation services" to public sector data controllers in the Netherlands; on the use of pseudonyms to disguise the users of services that give information about their geographical movements, such as driving information systems; on "privacy masking" of certain areas covered by CCTV surveillance; and on fingerprint identification of nightclub-goers.

The report is available at: http://ec.europa.eu/justice_home/fsj/privacy/docs/studies/final_report_pets_16_07_10_en.pdf