Quote:
A proposed regulation requires that software companies must disclose all data collection practices upfront. If enacted, all software companies, especially major ones, would need to comply. As a result, many users may choose to switch to software that collects less personal data, causing some companies to lose significant market share.
The argument above assumes which of the following?
(A) Companies that do not collect personal data will not gain any significant market share from those that do.
(B) Some users do not currently understand the extent of data collection involved in the software they use.
(C) The main reason for not adopting the proposed regulation cited above is to protect major software companies from losing market share.
(D) Only major software companies collect significant amounts of personal data from their users.
(E) Disclosure laws should be designed such that software companies are allowed to collect data only if users have explicitly consented to each type of data being collected.
Premise: A proposed regulation requires that software companies disclose all data collection practices upfront.
Premise: If it’s enacted, all software companies, especially major ones, would need to comply.
Premise: This increased transparency could lead to many users choosing to switch to a software that collects less personal data.
Conclusion: The reg could result in significant market share losses for some companies.
We’re looking for an assumption that the argument relies on.
A. This is the opposite of the conclusion.
B. This is necessary. Increased transparency would only alter consumer preferences and cause market shifts if it revealed new information. If consumers already know all they care to about data collection, the conclusion falls apart.
C. This is an overstatement, and not a necessary assumption.
D. This is also an overstatement. The word "especially" implies that it's not only major software companies that collect significant amounts of personal data.
E. This is an alternative proposal that has no effect on the current conclusion.
Best answer is B.