Online privacy isn’t as appreciated as it should be, but that may change as exponentially more devices are connected to the Internet over the next several years.
If you’re ever expecting a child, Target wants to be one of the first to know. The company has invested in research to identify pregnant customers early on, based upon their purchasing behavior. Then, it targets them with ads for baby gear.
While companies such as Target mine data about products their customers purchase from them (like prenatal vitamins) to send them personalized ads, many also rely on information gathered about us on the web — like what we search for on Google or email our friends. That lets them realize we’re planning a vacation to the Grand Canyon, for instance, and send us ads for local hotels.
That’s part of the reason why, in May, a new regulation will go into effect into the European Union giving citizens the “right to object” to “processing of personal data” about them for marketing and other purposes. As Andrus Ansip, the European Commission vice president for the digital single market, tweeted, “Should I not be asked before my emails are accessed and used? Don’t you think the same?” The new law overcame serious opposition from the advertising industry, whose representatives argue that it will disrupt ad revenues needed by the media. Experts say that websites will have to provide more valuable content to users as an incentive for readers to allow them to use their data.
Here in the U.S., most ads are bought through exchanges that allow advertisers to target people based upon data about them. Companies can choose to buy ads that will be seen, for example, by women who live in a particular ZIP code and graduated from a certain school. But according to guidance established by the Digital Advertising Alliance — a consortium of industry trade associations including the American Association of Advertising Agencies, the Association of National Advertisers, and the Better Business Bureau — consumers should have “the ability to exercise choice with respect to the collection and use of data.” Two members of the alliance accept consumer complaints and do their own research to identify violations of the rule. They work with companies to help them fix problems and report violations to regulators. 1
While the principle behind the new EU law could justify wide-ranging new regulations and restrictions on how companies throughout the world do business, James Ryseff, a former Google engineer, says it’s likely that initially it will simply allow users to opt out of the “cookies” that track internet users as they surf the web. Although this will reduce the amount of data that tech companies can collect, it doesn’t truly allow users to opt out of targeted advertising, since businesses can still use the information they gather through other techniques — such as in-store purchases — to classify and reach customers. That’s why, Ryseff says, Americans should have more sophisticated ways to determine exactly what advertisers learn about us.
First, for example, we should be able to decide whether companies are able to gather generic data about who we are (such as our age, gender and location) or information about what we’re doing (such as researching a medical condition) — or neither, or both. “In general, I think ‘What I do’ information has a greater ability to freak people out,” Ryseff says. “Used incorrectly, it makes you feel like Google is stalking you.”
Second, Americans should get to decide where and when our data is tracked. For example, some people might be more comfortable being tracked on a search engine that knows their buying behavior and can make recommendations accordingly, but less so on personal email which can identify private facts about their lives — or work email which might contain proprietary information. (Google previously used data from the content of users’ emails to target them with ads, but pledged in June to stop the practice.) And we might want to temporarily stop allowing search engines to track our activities when we’re looking up something private, like medical symptoms. 2
Third, we should get to decide whether we’re willing to be targeted with ads based upon our own behaviors or people algorithms have decided are like us.