Overview#Digital Identity systems must be designed so the disclosure of identifying information is limited to parties having a necessary and justifiable place in a given identity relationship.
Our experience with Microsoft Passport is instructive in this regard. Internet users saw Passport as a convenient way to gain access to MSN sites, and those sites were happily using Passport—to the tune of over a billion interactions per day. However, it did not make sense to most non-MSN sites for Microsoft to be involved in their customer relationships. Nor were users clamoring for a single Microsoft identity service to be aware of all their Internet activities. As a result, Passport failed in its mission of being an identity system for the Internet.
We will see many more examples of this law going forward. Today some governments are thinking of operating digital identity services. It makes sense (and is clearly justifiable) for people to use government-issued identities when doing business with the government|Government Entity]. But it will be a cultural matter as to whether, for example, citizens agree it is "necessary and justifiable" for government identities to be used in controlling access to a family wiki—or connecting a consumer to her hobby or vice.
The same issues will confront intermediaries building a trust fabric. The law is not intended to suggest limitations of what is possible, but rather to outline the dynamics of which we must be aware.
We know from the Law of User Control and Consent that the system must be predictable and "translucent" in order to earn trust. But the user needs to understand whom she is dealing with for other reasons, as we will see in the Law of Human Integration. In the physical world we are able to judge a situation and decide what we want to disclose about ourselves. This has its analogy in digital justifiable parties.
Every party to disclosure must provide the disclosing party with a policy statement about information use. This policy should govern what happens to disclosed information. One can view this policy as defining "delegated rights" issued by the disclosing party.
Any use policy would allow all parties to cooperate with authorities in the case of criminal investigations. But this does not mean the state is party to the identity relationship. Of course, this should be made explicit in the policy under which information is shared.