Some lucky Canadians will be revelling in a sparkling new smart phone this holiday season, and others will amuse themselves by downloading games and other online applications. But while mobile technologies can be useful and fun, it’s important to recognize their impact on your personal information, Canada’s Privacy Commissioner, Jennifer Stoddart, says.

“A fully-loaded smart phone is like carrying around a tiny little communications satellite, bristling with sensors and antennas,” the Commissioner explains. “It’s constantly sending and receiving data about your activities and your whereabouts. But where is the data going? What is it saying about you? And what is the effect on your privacy?”

In the third quarter of 2010 alone, more than 400 million mobile phones were purchased worldwide, and smart phones accounted for about one-fifth of that market. But, relative to regular cellphones, smart phones are exploding in popularity. While sales of all mobile phones increased by a third from the year before, smart phone sales actually doubled. In fact, industry observers predict that smart phones will comprise the largest share of the mobile phone market by the end of next year.

As these devices gain in popularity and sophistication, more and more applications (or apps) are being developed to run on them. These range from quirky quizzes to handy mapping and navigational programs, diet-tracking tools and social networking sites.

Location, location, location

Increasingly, apps are also capitalizing on the capacity of smart phones to reveal their owner’s location. One widely used app, for instance, automatically transmits coupons and other bonuses to the user’s mobile device every time the user patronizes certain establishments.

But just as apps vary in type and quality, so do their privacy policies and practices. From a technical standpoint, there’s little to stop developers from programming apps in a way that enables them to collect, use or share the personal information of users – and often that of their contacts or networks.

Users may never even know this is happening, and might not approve of the practice if they did. Indeed, the inappropriate collection, use or disclosure of personal information could expose people to surreptitious surveillance, or unwanted targeting by unscrupulous marketers or swindlers.

“Smart phones can do a lot of great things for you,” says Commissioner Stoddart. “But when it comes to protecting your personal information, it’s up to you to make the first call.”

Here are some tips for smarter smart phone use this holiday season:

Do your due diligence – Before you download a dazzling new app, check it out. Does it tell you what personal information it collects, and how it will use it? If not, do your own research. Many online forums discuss apps and provide authoritative reviews about important matters, including privacy.

Think it through – Downloading an app may be a snap, but take your time and do a cost-benefit analysis first. Your personal information has real value, which is why app developers, marketers and many others want to get their hands on it. But don’t give it away. Trade it for something worthwhile, including a solid assurance that it will be treated with care.

Keep it safe – If you lose your smart phone, a lot of your personal information can fall into the wrong hands. Make sure you always use a strong password to protect your data. If you give, trade or throw away your smart phone, be sure you first follow the manufacturer’s directions for thoroughly deleting all the data that was on it.