THE           -­about-­                           PRIVACYTRUTH                      Executive                             ...
INTRODUCTION3                  I.   III.BRAVE NEW WORLD        THE PRIVACY       OF SHARING      EQUATION                 ...
INTRODUCTIONAs technology makes our world more transparent, handlingcustomer data is both a risk and an opportunity for bu...
I        A BRAVE NEW WORLD OF SHARING  It is clear that consumers are thinking about the changing  nature of personal priv...
Four forces shaping privacyFour forces are shaping the new privacy norms. Technology’sascendance, omnipresent celebrities,...
All of these factors ensure that there is less and less    for information about us online, we need to devote  of a clear ...
II           THE RISE OF THE SAVVY SHOPPER     We know that privacy is an issue that worries consumers, but     some aspec...
In fact, if we look at the hierarchy of consumer concerns    aware that free email programs are often analyzed for  around...
It’s all a matter of intent...                                 pg  9   the  TRUTH  about  PRIVACY                         ...
But of course, not all consumers are as equally savvy…  Looking at consumers globally, we were able to identify ve  groups...
The bene ts of sharingThe dominance of Savvy Shoppers (and Eager               This shopper mentality ensures that consume...
III         THE PRIVACY EQUATION  Implicit in the varying importance of di erent types of data is  a marketplace where dat...
Trading data for valueWhile 84% of consumers believe they have a total         Increasingly, governments and businesses wi...
IV        ADVICE FOR BRANDS: THINK LIKE A BANK  Online brands are in the eye of the storm.  It’s intuitive that the compan...
Banks and credit card companies the most trusted80%           nk                 s                                        ...
A proactive response to new norms                                 An emotional reason to trust banks  Banks and credit car...
For all types of company and brands, there are four keydynamics to privacy when it comes to maintaining a proactive,produc...
IS THE FUTURE OF PRIVACY COMING FROM THE SOUTH?   Epilogue  We noticed across markets that the southern countries –  Chile...
The Truth About Privacy: SummaryI. A BRAVE NEW WORLD OF SHARING                            III. THE PRIVACY EQUATIONGlobal...
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Transcript of "69322060 the-truth-about-privacy"

  1. 1. THE -­about-­ PRIVACYTRUTH Executive   Summary McCANN TRUTH CENTRAL
  2. 2. INTRODUCTION3 I. III.BRAVE NEW WORLD THE PRIVACY OF SHARING EQUATION 4 12 II. IV. THE RISE OF ADVICE FOR BRANDS:THE SAVVY SHOPPER THINK LIKE A BANK 7 14 Epilogue: IS THE FUTURE OF PRIVACY APPROACHING FROM THE SOUTH? 18 SUMMARY 19
  3. 3. INTRODUCTIONAs technology makes our world more transparent, handlingcustomer data is both a risk and an opportunity for businesses.While the foremost concern must be to protect the data andprivacy of customers, a smart data strategy also encouragesresponsible sharing of relevant data, bene ting both the brandand the consumer.How do you know if you are being both safe and Quantitative research conducted in US, UK, Hong Kong,smart with customer data? What is the truth about Japan, India and Chile.privacy concerns online? What kinds of data are we Qualitative research conducted in US, UK, Hong Kong,most concerned about? What does privacy actually Japan, India, Chile, Thailand, Malaysia, Indonesia,mean to the average person around the world? How Australia, Belgium and Italy.can businesses cultivate responsible sharing with theirconsumers and within their category?Combining a 6,525 person quantitative study Our ndings are divided into 4 Chapters:conducted in the US and ve other markets and I. A BRAVE NEW WORLD OF SHARINGqualitative research from twelve markets, the TruthAbout Privacy study has yielded truths to answer II. THE RISE OF THE SAVVY SHOPPERthese questions and countless more. III. THE PRIVACY EQUATION IV. ADVICE FOR BRANDS: THINK LIKE A BANK & EPILOGUE: IS THE FUTURE OF PRIVACY COMING FROM THE SOUTH? pg  3 the  TRUTH  about  PRIVACY McCANN TRUTH CENTRAL
  4. 4. I A BRAVE NEW WORLD OF SHARING It is clear that consumers are thinking about the changing nature of personal privacy. Indeed, it is the second most worrying issue among seven global concerns. 70% of people worry about the erosion of personal privacy, while 78% worry about a further global nancial crisis. With so much at stake, smart businesses need to know an ultrasound image of their bundle of joy, things the Truth About Privacy. people would never have shared publicly in the past. One Chilean we spoke to summed it up best saying, The rise of social media has fundamentally altered “Privacy is not the same anymore.” the nature of what’s private or public. Globally, 75% agreed that “people share far too much personal information online these days.” Whether it’s a celebrity To what extent does each of these things worry you or friend, we all know someone who has tweeted personally? %  selecting  “worries  me  a  great  deal”   about the intimate details of their divorce or uploaded or  “somewhat  worries  me” %100 %80 %60 %40 %20 %0 Er rso A nan In Cl In ucle Oi Gr pa im cr erro st ar ls fu cia os na ow nd pe of n of ab p ea ri rth l ho at io l p in em t se sm ili ow n e rta er cris g ic ty e ch of riv d nu s ge gl is lev an of r m ob s ge els be al r ac ythe  TRUTH  about  PRIVACY pg  4McCANN TRUTH CENTRAL
  5. 5. Four forces shaping privacyFour forces are shaping the new privacy norms. Technology’sascendance, omnipresent celebrities, the end of embarrassment,and the role of social networking in civic life are all pushing usinto a brave new world of sharing.Technology’s ascendance: Asked for their spontaneous The end of embarrassment: With so much beingassociations with the word ‘privacy’ in our groups, the shared, it’s much harder to actually be embarrassed rst words that came to mind for our respondents were about something these days. Many in our groupsall related to technology. Technology has a created wondered why politicians or stars caught makinga more uid and borderless world. As one younger risqué tweets or texts were often trying to cover theirperson from the US said, “You put your info in a little actions. As one person noted. “Everything is hanginglake, and then it goes into a river and then it goes into out… so why should I be embarrassed about, you know,the ocean.” Unlike the real world it’s harder and harder anything?” How many of us have overheard (or had) ato see where the ‘edges’ are which makes it harder to private conversation in public on a cell phone?give consumers a sense of control over their own data.Omnipresent celebrities: Celebritites have raised The role of social networking in civic life: The mostthe bar for what is and isn’t acceptable to share in overwhelmingly positive aspect of this networkedpublic. The name Kim Kardashian seems more likely world is the increased sense of connection associatedassociated with a focus group about fragrances or with online sharing. Social networks have becomeluxury products. But in our groups, the name was the new place to gossip, to have a rant, and to getassociated with changing privacy norms. Celebrities important news about your friends, family andlike the Kardashians have capitalized on Twitter and community. While for some a shift towards a digitalother social media trends, sharing their lives more village may be alienating, for many others it’s broughtthan ever before with their fans. Now anyone can them closer to friends and family who live far away.become a celebrity if they just tweet enough! For many, including older consumers, it has brought a renewed sense of connection with civic life. pg  5 the  TRUTH  about  PRIVACY McCANN TRUTH CENTRAL
  6. 6. All of these factors ensure that there is less and less for information about us online, we need to devote of a clear separation between public and private. More more time to managing our online brand (or multiple and more we seem to be asking ourselves: What is online brands). People describe needing to separate the appropriate to share and what should we hold close? ‘virtuous me’ that is suitable for family and employers Further, what is it appropriate to search about others? (no drunken party pics) from the ‘popular me’ which we must project to friends and social acquaintances that Our research suggests that searching and snooping we seek to impress. Some even resort to anonymity to is becoming more commonplace. Lately it’s actually protect their identity from unwelcome snooping. become quite normal for us to nd out excessive amounts of information about a casual acquaintance As online identity and privacy becomes a more or someone we hardly know, simply because that complex business and at the same time more brands information is out there. While only 1 in 10 admit to seek to interact with their customers online, it begs an the old-fashioned snooping of reading someone’s diary, important question: Which version of your customer many more have used technology to learn about the are you interacting with today? lives of others. 40% of people say they’ve looked at the online photographs of people they hardly know. As a young respondent from Australia commented, “I’ve stalked people on Facebook, everyone does.” In a world where more and more people are searchingthe  TRUTH  about  PRIVACY pg  6McCANN TRUTH CENTRAL
  7. 7. II THE RISE OF THE SAVVY SHOPPER We know that privacy is an issue that worries consumers, but some aspects of privacy are far more worrisome than others. Globally, consumers have two prime concerns about privacy…1. The security of their nances 2. The security of their reputation Financial security often feels challenged by the brave The brave new world of sharing has also challenged the new world of sharing. The fear of being hacked is security of people’s reputations. Errant (or false) posts universal, as are the associated fears of bank account online can cause loss of face, jobs, or relationships. and identity theft. In the US there was particular These reputational fears are viewed as irreparable in sensitivity to credit scores and ID theft because of the some markets, particularly in Asia. A younger Indian potential for wide-reaching consequences. One young noted that she didn’t want old pictures to pop up American said, “When it comes to my nances… your without her authorization online. “I don’t want anyone credit score and your ID are the only things you have to question my character,” she said. to show you’re a credible person.” Perhaps this is why many people would rather someone break into their house than hack into their bank details. When confronted with a list of possible bad scenarios involving loss of personal privacy, over one-third (36%) of people said having their bank details stolen was the worst outcome. pg  7 the  TRUTH  about  PRIVACY McCANN TRUTH CENTRAL
  8. 8. In fact, if we look at the hierarchy of consumer concerns aware that free email programs are often analyzed for around privacy we can see that the fears associated interest-based advertising. with activities that a ect nancial security or security of Many in our groups expressed positivity towards reputation (i.e. snooping) are at the top of the pile. interest-based advertising, stating that they would Interestingly, issues like CCTV cameras and interest- rather see ads that interested them than ‘random’ based advertising, when viewed in context, are seen advertising which was completely irrelevant to them. less as privacy violations and more as a ‘normal part of The savviest consumers actually ‘game the system’ for life these days.’ their own ends. One man in the USA casually used his When we look speci cally at the issue of interest- Google email account to get quick recommendations on based advertising – a common practice in this age an appliance he was looking to buy! “I was interested of digital data collection – we nd that most people to see what the marketers would have in terms of that claim to be aware that they are seeing targeted ads appliance,” he said, mentioning that he was waiting for online. A majority (65%) expressed awareness about appliance ads to then appear on the Gmail ad banner of companies tracking websites and recording personal his ‘sent’ folder. preferences for marketing. Almost half (44%) were 50 Choose the three things which would bother you the most. %  selecting  option  as  one  of  top  3  bothers 40 30 20 10 % So rd/ A ail So Ia yk A der A ail I a cur A y tr A ree So edi fri s co to co s tra ip co n m ba m m cin m no m ity ca em m or em se m sc m eo nk eo eo e en wi m s m to lle at re wl bo ns s pu ug pu m ne a ne ne ca ag wo d tho co ed po dy or u te ge te ak ue rk rd ge lo cco re lo bin rt -sc r t st ru e pa t a ed ok u ok et ad co lo /sc an ra p se sug rtn sk ok h s a nt st sm m on ck ro ne s t ge pa s a oo hr er ing t m sta CC s t du d y he st ou ny tm l re m at di he ct y tem TV gh co ion ad e ar tra cr e air y w s an w y nt s sm ed nt m co ck po eb d ith en y it m in sit se rt y ou to pu g es rv t fm te I v ice r y isi s ti nthe  TRUTH  about  PRIVACY pg  8McCANN TRUTH CENTRAL
  9. 9. It’s all a matter of intent... pg  9 the  TRUTH  about  PRIVACY McCANN TRUTH CENTRAL
  10. 10. But of course, not all consumers are as equally savvy… Looking at consumers globally, we were able to identify ve groups of consumer based on their attitudes towards privacy. The largest group, the Savvy Shoppers, The smallest group of consumers, 9% embodies the data trade-o s necessary in globally (7% of the US), is the Cautious this brave new world of sharing. This group, Communicators. This group is de ned 37% of the global population (also 37% of by their pronounced dislike of mailings, the US population), is willing to engage with messages and other forms of frequent businesses, but wants to see safeguards contact. While not particularly worried about such as security certi cates and to receive the erosion of personal privacy, this group something in return such as discounts. is the least likely to sign up for company newsletters and o ers and express a strong 15% of the global population (9% of US), desire to know exactly how their data will Eager Extroverts are de ned by their be used. love of mobility and sharing through social media. Their constant sharing has The nal group is the most private. 19% of its downfalls, though, as they worry that global consumers (36% of US) are Walled someone might denigrate them online, Worriers. Walled Worriers are also the most leading to a sour reputation among friends, sensitive to perceived invasions of privacy. partners, or employers. Although this group harbors a mistrust of businesses, they’re not that resistant to At 20% of global consumers (11% of the US), receiving news or o ers through email. They the Sunny Sharers is the second largest do, however, require assurances that data group of consumers. This optimistic group is collection is minimal and won’t be shared able to see the positive outcomes associated with third parties. with sharing data. They are connecting and engaging in order to get the best experience and recommendations possible. They are mindful about sharing information that could damage their nances or reputation, but they won’t let this stop them from sharing almost everything else.the  TRUTH  about  PRIVACY pg  10McCANN TRUTH CENTRAL
  11. 11. The bene ts of sharingThe dominance of Savvy Shoppers (and Eager This shopper mentality ensures that consumersExtroverts and Sunny Sharers) means that globally globally express di erent sensitivities about di erent86% understand that there are major bene ts types of data.associated with sharing data with businesses online. Only 14% globally are willing to share their nancial dataFor the majority (65%) one of the top two bene ts with a brand online, re ecting the sensitivity of thatis better access to discounts and promotions, a very information to a consumer’s sense of security. “It deals“Savvy Shopper” mentality. 49% also found it bene cial with MY money and MY identity,” stressed one Italian.that companies can show them new things that they Similarly only 27% and 39% are wiling to share medicalactually want. and personal data respectively. These categories of data are tied closely to the emotional security that isLEAST SENSITIVE also very important to consumers. % of people willing to share this type of data with a brand online However, nearly ¾ (71%) are willing to share their shopping data with brands online. “My shopping data is Shopping not ME,” remarked one American woman. 71 This wide dispersion in willingness to share particular types of data re ects the active judgments consumers 48 Location are making about what data to share and what data to keep private. 39 Personal 27 Medical 14 FinancialMOST SENSITIVE pg  11 the  TRUTH  about  PRIVACY McCANN TRUTH CENTRAL
  12. 12. III THE PRIVACY EQUATION Implicit in the varying importance of di erent types of data is a marketplace where data is a valuable good, to be traded and monetized. We think of this as the privacy equation. A big part of the privacy equation is having active tools But young people are taking more active measures to to maintain control of your side of the equation, your protect themselves: 84% of those under 30 with a social personal privacy online. Globally we see that people are networking pro le have changed privacy settings, while becoming accustomed to taking protective measures. only 58% of those over 40 have done so. 73% have taken the basic step of securing anti-virus One trend we noticed is that the older generations software for their computer. Nearly half (47%) are are looking to one another – to their community – to being selective about who they add to online social manage their technology. They rely on anecdotes networks, only ‘friending’ their real life friends and and warnings from friends and family to help them acquaintances. secure themselves in the face of new and varied threats. Young people, on the other hand, tend to use There seems to be a debate among generations about technology to mange their friends and community. who is better at managing their privacy. The older group believes that the brave new world of sharing may someday catch young people o guard. Which of the following measures have you taken to protect your privacy? %  who  have  done  this 70 60 50 40 30 20 10 % Ih I o my Ih a I n sec I a mp Ie I a se Ih yb Ic yc I h ore ar hil ns th lw an lw nl o ev ur av av soc av row av lo to on un co is to m m st ef dr y nl ur e d ay ys ay m er ed ea e c ia ed s e n ya on ad in ul en et o sl p so eo co w ha e nt nd isa er ev ly d oo riv ha -no nn i i-v pt e ng tw er ca pe oc co use bl k ac t m t- ec ne iru ed ed or ou lty sig rd/ ln op ia nt th at y es t t tw ro e ss y call t w an le l n co th kin ne rew a po o or ph li l h in w et ep g of ok d rs he d in ho w on st ow ter tw up d ies riv sit n fo en ar I k ork bu rm fo s c an net ac e in e lic ar um r a ar no sin at ks d y y w se w es ion be he tti se r n ng sa d s skthe  TRUTH  about  PRIVACY pg  12McCANN TRUTH CENTRAL
  13. 13. Trading data for valueWhile 84% of consumers believe they have a total Increasingly, governments and businesses will need toor some right to privacy, only 51% believe the same recognize that privacy is a two-way street. Consumersapplies to the government. The government, it may be willing to share more of their personalseems, must trade privacy for power. Similarly, only information (in order to gain bene ts) but they expect a57% of consumers believe a brand or business has greater degree of transparency in return.a right to privacy. 65% of consumers say a realityTV star has a right to privacy; the other 35% mightbelieve that star has traded his private life for fame(and a maybe cash prize).100 80 60 40 20 % Someone A famous company A famous A reality A A brand or The like me athlete CEO performer TV star politician business governmentHow much privacy do they have a right to when it doesnot pertain directly to their work?  %  responding  “total  right”  or  “some  right  to  privacy” pg  13 the  TRUTH  about  PRIVACY McCANN TRUTH CENTRAL
  14. 14. IV ADVICE FOR BRANDS: THINK LIKE A BANK Online brands are in the eye of the storm. It’s intuitive that the companies leading the charge towards increased sharing are also seen as the greatest threats to privacy. Asked to choose among a list of 14 of the world’s largest and most recognizable brands, most of the companies that are perceived as the greatest threat to personal privacy are new technology brands. In particular, Facebook (54% of people) and Twitter (41%) are seen as the most worrisome. These two brands are virtually the embodiment of the brave new world of sharing. Consumers do tend to acknowledge that this position as a “sharing company” is part of the reason why Facebook and Twitter face more problems. As one young person from the UK said, “Facebook wasn’t made for a private or secretive person.”the  TRUTH  about  PRIVACY pg  14McCANN TRUTH CENTRAL
  15. 15. Banks and credit card companies the most trusted80% nk s nie s Ba mp a nie s s o ies nie s a a nie dc an mp a mp mp70% it car mp co ec o ec o d co al an c ie s c Cre cal tic sur an sur an ies nie s d i ce u p ets n pa60% Me ma hi n com ark le i n pa om ies ar alt nic m bi om ec an Ph He tro ery to mo n gc tiv mp Ele c oc thi o sc o Gr Au Clo tom50% Au ort nie s Sp pa com40% a uty Be es bsit30% we g tin Da20%10% 0%The majority of consumers trust banks and credit card How much would you trust each of the above types ofcompanies. 69% of consumers globally (65% of US) companies to look after your personal data and use ittrust banks to look after their personal data and use wisely %  responding  “trust  them  a  lot”  or  “trust  it wisely. 57% (46% US) hold credit card companies them  somewhat”in the same regard. Considering that consumers areso sensitive about their nancial information, this is astrong sign of trust. pg  15 the  TRUTH  about  PRIVACY McCANN TRUTH CENTRAL
  16. 16. A proactive response to new norms An emotional reason to trust banks Banks and credit card companies cultivate an increased There are also emotional reasons why banks hold such sense of responsibility among consumers, with a trusted status on the issue of privacy in the minds of reminders for passwords and security veri cation. consumers. For one, the imagery of banks is all about There are often levels of protection embedded in the secrecy and protection of assets. Even in an era when websites of nancial brands, and frequently these most of our lives are digital, some of our most precious protective features include automatic responses to assets are physical, and the most precious of these ensure consumer security such as logging someone are usually kept in safe deposit boxes. Further, when o after they have gone idle. Also of value to something bad does happen, the rst call is often to a the consumer relationship with brands is upfront nancial institution. Trusted representatives are there commitment and communication about what to expect to answer the call and procedures are in place to help when interacting with the company online. consumers feel safe and secure at a time of increased vulnerability. Which three things below are most important to you? %  selecting  option  as  one  of  top  3   most  important  criteria 55% 51% 50% The company doesn’t I know exactly how That I can control pass my data on to my data is going to exactly which pieces any third parties be used of information I share and don’t share 43% 31% 29% 26% 20% The company I have a clear The company is well The company’s The company website has a understanding of known privacy policy is easy destroys its collected security certi cate how giving up my to read and consumer information data will bene t me understand after 6 monthsthe  TRUTH  about  PRIVACY pg  16McCANN TRUTH CENTRAL
  17. 17. For all types of company and brands, there are four keydynamics to privacy when it comes to maintaining a proactive,productive and share-worthy relationship with consumers:Control, choice, commitment and compensation are the key toassurance and trust.People want a commitment from companies that they When it comes to control, people want to be inwon’t pass personal data [ie. their telephone number command of which pieces of data they share. 49%or email address] on to third parties. 55% (56% US) of (55% US) think it is very important to have thispeople select this as one of their top 3 most important control, re ecting their sensitivity level for di erentcriteria when deciding to trust a brand. types of data.They also want a choice about how their data will be Consumers also want compensation. They want aused. 51% (57% US) say it is important to know exactly reason to share data, an understanding of how theyhow their data is going to be used. will bene t. 31% (30% in US) say this is a top criterion for sharing data. CONTROL CHOICE That I understand I can choose what what will happen to share and what to my data not to share -the 4Cs of- TRUST COMMITMENT That I understand COMPENSATION the company’s That I understand commitment to my the equation i.e. what’s security and in it for me! privacy pg  17 the  TRUTH  about  PRIVACY McCANN TRUTH CENTRAL
  18. 18. IS THE FUTURE OF PRIVACY COMING FROM THE SOUTH? Epilogue We noticed across markets that the southern countries – Chile, India, Southeast Asia (and within Europe, Italy) – had a much more open attitude towards sharing. On the other hand, the historically developed Northern countries of the US, UK, Northern Europe and Japan were a bit more cynical about sharing and bothered by perceived privacy violations. A ‘Southern mentality’ towards sharing Southern countries are embracing new technology and countries have embraced new technology with open are much more keen to share about their lives. 80% arms, harboring fewer reservations and mostly of Chileans and 77% of Indians agree that they like focusing on the economic and social bene ts. sharing their thoughts and opinions with friends online, Over time, many believe service industry jobs and versus only 46% in the UK and 31% in Japan. technological innovation will move south to the growing Similarly, the Southern countries have recognized the markets of Latin America, the Indian Subcontinent and importance of social media and this new era of privacy Southeast Asia. As these areas rise in importance, their to their career trajectories. 45% of Indians and 42% of enthusiastic embrace of new technologies could start to Chileans believe it is easier to get ahead in your career exert more in uence on global attitudes. if you share more personal information online. Only 14% of Americans and 10% of Japanese agree. If you look at the presence of the ve segments in di erent countries, we nd that the Southern countries have many more Eager Extroverts and Sunny Sharers. One of the possible reasons the Northern countries are more skeptical is their gradual adoption Internet culture in the 1990s. Many people in these countries NOW SOON? remember the early days of the Internet before any norms were established and people were just learning about hackers and viruses. By contrast, the Southern countries have experienced a much faster dispersion of widespread Internet access. Consumers in thesethe  TRUTH  about  PRIVACY pg  18McCANN TRUTH CENTRAL
  19. 19. The Truth About Privacy: SummaryI. A BRAVE NEW WORLD OF SHARING III. THE PRIVACY EQUATIONGlobally, 75% of people agreed that “people share Implicit in the varying importance of di erent types offar too much online these days.” Four forces have data is a marketplace where data is a valuable good.contributed to a rise in sharing: Technology’s We think of this as the privacy equation. A big part ofascendance, omnipresent celebrities, the end of the privacy equation is having active tools to maintainembarrassment, and the role of social networking control of your side of the equation – your personalin civic life. These four forces have blurred the line privacy online. The privacy equation is also aboutbetween public and private and helped spur a rise in exchanging data for other things we value. Those whosnooping and searching. have money, fame, or power give up some of their right to privacy.II. THE RISE OF THE SAVVY SHOPPER IV. ADVICE FOR BRANDS: THINK LIKE A BANKPersonal privacy is seen as linked to personal security. The majority of consumers trust banks and credit cardFinancial and emotional concerns are the most relevant companies. 69% of consumers globally (65% of US)to personal security, which may explain why 36% trust banks to look after their personal data and use itof people would rather have their home broken into wisely. 57% (46% US) hold credit card companies in thethan have their bank details hacked. People are more same regard. Banks are good at providing people withkeen to share certain types of data more than others the 4C’s of trust: Control, Choice, Commitment, and– shopping data the most and nancial data the least Compensation. Other brands should follow their lead.– and the largest segment of consumers, the SavvyShoppers, are the most willing to trade shopping datafor bene ts. pg  19 the  TRUTH  about  PRIVACY McCANN TRUTH CENTRAL

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