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Jeff Chester

2 weeks ago

in Behavioral Advertising Industry Practices Hearing: Some Issues that Need to be Discussed on The Technology Liberation Front
I find it ironic--if not disturbing--that the writers of this post are employed by an organization whose financial backers are the biggest online marketing companies: Google, Microsoft, News Corp/MySpace, Time Warner/Platform A, etc. Here's the list: http://www.pff.org/about/supporters.html

The head in the digital sand `what me worry about my privacy' approach is similar to the wrongheaded thinking that led to the current financial crisis (but perhaps with well-heeled financial backers such as Google and Microsoft, the authors don't share the same financial and personal pain most US consumers experience!). The failure to regulate the financial sector directly led to the greatest economic catastrophe since the 1930's. Financial, health and other transactions essential for the welfare of consumers have moved online--all without regulatory safeguards. The authors continue to portray a online marketing system which doesn't reflect what's actually going on with consumers. Yet members of congress from both sides of the aisle can understand that when your information is collected and analyzed and used for purposes an individual hasn't consented to--let alone knows about--it's bad for consumers. I believe we can have reasonable regulation that permits consumer interests and a robust online marketplace. Anyone who thinks we can't have both is living in a previous era.

3 months ago

in Obama FTC Spells Trouble: Part II on Direct
I also was referring to the 2008 decision of the EU data protection commissioners (Article 29 Working Party) on search engine data what is considered identifiable information. Here's an excerpt: "An individual's search history is personal data if the individual to which it relates, is identifiable...When a cookie contains a unique user ID, this ID is clearly personal data. The use of persistent cookies or similar devices with a unique user ID allows tracking of users of a certain computer even when dynamic IP addresses are used. The behavioural data that is generated through the use of these devices allows focusing even more on the personal characteristics of the individual concerned."
source: ec.europa.eu/justice_home/fsj/privacy/docs/wpdocs/2008/wp148_en.pdf

4 months ago

in Obama’s FTC Spells Trouble with a Capital T on Direct
Ken: I won't comment on your grasp of political reality. But I should point you to the FTC's new principle governing so-called non-personal information. I suggest you update and revise your analysis. Here's a link and an excerpt from the recent FTC staff opinion: " An IP address is a numerical identifier assigned to a computer or device that connects to the Internet.

Staff believes that, in the context of online behavioral advertising, the traditional notion
of what constitutes PII versus non-PII is becoming less and less meaningful and should not, by
itself, determine the protections provided for consumer data. Indeed, in this context, the
Commission and other stakeholders have long recognized that both PII and non-PII raise privacy
issues, a view that has gained even more currency in recent years for a number of reasons.
First, depending on the way information is collected and stored, it may be possible to link or
merge non-PII with PII...Second, with the development of new and more sophisticated technologies, it likely will
become easier to identify an individual consumer based on information traditionally considered
to be non-PII. For instance, although industry has traditionally considered most IP addresses to
be non-PII, it soon may be possible to link more IP addresses to specific individuals.50"
http://www.ftc.gov/opa/2009/02/behavad.shtm

4 months ago

in Targeted Online Advertising: What’s the Harm & Where Are We Heading? on The Technology Liberation Front
Our views have been formed by a analysis of the data collection and targeting strategies deployed online (and its relationship to content construction and user behavior). This includes a review of the online ad research apparatus, including its goals.

You should examine more closely the CDD/USPIRG complaints to the FTC [starting with the initial 2006 filing]. You should also read the chapter from my 2007 book which examines online advertising. And our reports available at digitalads.org (which provide both an overview and an update on techniques and trends for one specific targeting category). I also respectfully urge you to review--if you haven't recently-- the professional, scholarly and trade literature on online marketing, including data collection. There's a huge literature here, which should be followed closely if we are to have a serious debate.

I also urge you to examine first the entire range of data collection/profiling and targeting cross-platform strategies of your funders, and then report back via this blog the results. Progress and Freedom Foundation is funded by many of the leading online marketers who are affected by this policy debate. Such potential conflicts of interest should be acknowledged.

4 months ago

in Targeted Online Advertising: What’s the Harm & Where Are We Heading? on The Technology Liberation Front
It's absurd to suggest that ensuring privacy online threatens the economic well-being of the Internet. The Internet should not be immune to consumer protection policies (including such critical areas as when seeking a mortgage, getting a loan or researching a medical condition or treatment). As one investigates the technologies and business models at the core of the threat to online privacy, it's clear that the ever-growing digital profiling, tracking, and targeting across sites and platforms threaten privacy and also consumer welfare. Individual liberty, in my opinion, is also at stake when someone is using the power of online marketing to influence your opinions and actions in a non-transparent way. The FTC has made advances in its capacity to research and analyze the issue, hence its new principles. I urge the authors to spend more time doing first-hand research, so they can more knowledgeably participate in the debate.
1 reply
Berin Szoka's picture
Berin Szoka Thanks, Jeff, for your comments. I really appreciate your engaging us in a dialogue about this. My responses to your comment follow below:
It's absurd to suggest that ensuring privacy online threatens the economic well-being of the Internet.

So you dismiss out of hand as "absurd" the concerns of essentially everyone (besides yourself and the other self-appointed "privacy advocates") who commented last year on the FTC's initial proposed Principles? Even the FTC recognized, in issuing the final principles, the need to "balance the potential benefits of behavioral advertising against the privacy concerns." So if there's an "absurd" position outside the mainstream of the debate here, it's the one that denies that there's any trade-off at all between restricting targeted advertising (and the data collection that drives it) and the amount of ad revenue available to fund the Internet's future.

What, exactly, do you mean by "ensuring privacy online," anyway? Mandating opt-in "before any data are collected" as you suggested in your FTC comments last year?

Tell us, what effect do you think that requirement would have on the "economic well-being of the Internet," as you put it? More to the point, what do you think would be the effect of such a draconian requirement on consumers of advertising-supported online content and services? Do you think these offerings will just continue to fall like manna from heaven? If you do recognize that there's a trade-off here, do you see some alternative that could make up for the reduced growth (or even actual reductions) in ad revenues?
The Internet should not be immune to consumer protection policies (including such critical areas as when seeking a mortgage, getting a loan or researching a medical condition or treatment).

The Internet is already subject to the same basic consumer protection law that governs the rest of the economy—the one against unfair and deceptive trade practices enforced by the FTC. As Adam and I have made clear, we view FTC enforcement of corporate private policies (and other terms of use) as the ultimate layer in the layered approach we have called for. But if you want to go farther than that, the burden rests on you to explain why we need to do so. Specifically, you need to tell us what the harm is.
As one investigates the technologies and business models at the core of the threat to online privacy, it's clear that the ever-growing digital profiling, tracking, and targeting across sites and platforms threaten privacy and also consumer welfare.

If this is so "clear" to you, please, enlighten us. How, exactly, are consumers harmed by profiling, tracking or targeting? And what does a threat to "privacy" really mean?
Individual liberty, in my opinion, is also at stake when someone is using the power of online marketing to influence your opinions and actions in a non-transparent way.

Really? How so? How is my liberty comprised by being shown ads geared towards my interests? Am I unfree because someone might actually try to—horror of horrors!—change my mind about something?

You seem to be suggesting suggesting that advertising produces "false consciousness," such that the user's thoughts are not really their own if influenced by advertising, or if that advertising was specifically targeted to them. If that's really what you're saying, why don't you just come out and admit that you share Marx's belief in the inherent manipulativeness of advertising? If that's not what you're saying, please enlighten us as to your theory of how targeted advertising actually threatens individual liberty.
The FTC has made advances in its capacity to research and analyze the issue, hence its new principles. I urge the authors to spend more time doing first-hand research, so they can more knowledgeably participate in the debate.

Are you always this condescending to those who don't share your opinions?

Now, speaking of "first-hand research," what have you done to show the real harm created by targeted advertising? We're actually trying to suggest real solutions that empower users, while you rant about conjectural harm.

So, again: What's the harm, Jeff? Where's your evidence? If you're going to point to polling data to support an argument based on consumer expectations, I'd really love to hear how you overcome the objections raised by Solveig Singleton and Jim Harper in their outstanding study, "With A Grain of Salt: What Consumer Privacy Surveys Don't Tell Us." As I've noted before, "Seeing what users actually do in real life says a lot more about their preferences than merely polling them about what they think they care about in the abstract." The reality is that most people just don't seem as bothered by targeted advertising as you think they should be. Another case of "false consciousness," perhaps?

1 year ago

in Do Not Track Registry Likely to Include Exemptions on The Technology Liberation Front
The Center for Digital Democracy does not support a do-not-track list. We want federal rules that give individuals control over their data--so it can't be readily used by advertisers or government. The commercial surveillance system put in place tracks and analyzes our activities online. It's not a debate about people selling "duvet covers" via digital marketing. It's preventing, if an individual desires, from having a system used by others that includes sensitive information about our lives (health concerns, political interests, etc). At a time when a growing majority, especially young people, are living their lives online, do we want either Big Brother/Big Sister from Washington or Madison Ave. always peering over our (digital) shoulder?
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