Two Sides of Privacy

July 3rd, 2009

Ever since cookies were introduced to surfers of the web, there has been two contrasting values perpetrating the Internet. One side was fully benevolent, and offered users ads tailored to their every need, and including products they might actually want, instead of the completely random bombardment of ads. All around this would create a more personalized, and just generally better surfing environment. The dark side to all of this is the tracking, and ruthless storage of information about your online life, and the possibility of all of this information to become known.

Online advertisement agencies have always had a spotted past with privacy laws and their invasion due to the behavioral advertising practices, (where they browse your history to figure out what you are interested in) and the fact that much of this is done with no permission and often without the consumer’s knowledge.

They need to change soon though, because people and lawmakers are complaining. Two subcommittees in the House are meeting this week to discuss implementing more stringent privacy laws as far as online advertising goes. The House has polled major Internet giants such as Yahoo, FaceBook, and MySpace, and found that many of them have very flawed and inadequate privacy guarantees. The people have spoken too; those polled confess they are unsure about how well they are being protected and usually completely unsure of their rights to privacy. Needless to say, the House is almost dead-set on increasing guidelines and enforcing them more strictly.

In actuality, a physical bill governing these privacy failures is unlikely, but the companies get the idea: shape up quick! The Federal Trade Commission (FTC) has been using a self-regulating system for these advertisers, but when it doesn’t work, kicks in a little regulatory pressure. Basically, the law threats make everyone get their act together.

The House is planning to use a system where first party websites (the one you are surfing) can track and collect cookies, while third party websites have to have permission from the consumer. In other words, an opt-out system for first party websites, (where you have to say if you don’t want to take part) and an opt-in system for third party websites. (where you would have to say you wish to have your information taken)
Although this seems like a good situation, advertisers are a bit nervous about it. In an already faltering economy with most companies barely afloat, this will push some over the edge by not allowing them to access their desired demographics.

What is the best solution? Some suggest that it be totally left up to the consumer to decide whether they wish to share information, but offer incentives for their participation. The solution needs to come soon though, as people spend less money on ads than another other month this year in June.

Media companies are going to have to come up with something quick. It is quite ironic that they so meticulously collect data on us as though we were lab rats, but then will share no fiscal reports or any other financial reports with the public. Something has got to give, and even in these days where privacy seems to be an idyllic memory, it probably won’t be the public.

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Bob C Says:

The amount of information that various web sites that you visit can accumulate about you is, indeed, very scary. Even worse – what is to prevent sites from sharing your private information with other sites. Think about the dossier that could be accumulated about you just by pulling together information from the web sites that you visit.

This ain’t Big Brother – it could be worse!

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