TorrentFreak surveyed nineteen VPN providers, asking them questions about their privacy practices: what data they keep, how they respond to court order, what country they are incorporated in, and so on.
Most interesting to me is the home countries of these companies. Express VPN is incorporated in the British Virgin Islands. NordVPN is incorporated in Panama. There are VPNs from the Seychelles, Malaysia, and Bulgaria. There are VPNs from more Western and democratic countries like the US, Switzerland, Canada, and Sweden. Presumably all of those companies follow the laws of their home country.
And it matters. I’ve been thinking about this since Trojan Shield was made public. This is the joint US/Australia-run encrypted messaging service that lured criminals to use it, and then spied on everything they did. Or, at least, Australian law enforcement spied on everyone. The FBI wasn’t able to because the US has better privacy laws.
We don’t talk about it a lot, but VPNs are entirely based on trust. As a consumer, you have no idea which company will best protect your privacy. You don’t know the data protection laws of the Seychelles or Panama. You don’t know which countries can put extra-legal pressure on companies operating within their jurisdiction. You don’t know who actually owns and runs the VPNs. You don’t even know which foreign companies the NSA has targeted for mass surveillance. All you can do is make your best guess, and hope you guessed well.