Blog Post #5

Consequences for the Absence of Regulation

Social networking sites, Facebook and MySpace, recently released their proposals for targeted marketing. Both sites will now have banner and flyer ads catered to the specific interests, location and hobbies of the sites' users. The sites' gold mine of information from users is now a means of profit for the companies. 

But how do the sites directly target the users? They collect the users' personal information and monitor it. Is that right? Many privacy advocacy groups like the Center for Digital Democracy don't think so. The CDD has filed a complaint for the Federal Trade Commission to impose regulations for online marketing. (See "New Facebook, MySpace Ad Programs Prompt FTC Complaint")

"New technology has brought extraordinary benefits to society, but it has also placed all of us in an electronic fishbowl in which our habits, tastes and activities are watched and recorded, " New York Governor Eliot Spitzer said when he was attorney general (from Simon Garfinkel's article "Privacy and the New Techonology:What They Know Can Hurt You."  The Internet has remained a free market for all to use as they wish. Most embrace this uncontrolled freedom of speech and typically forget about the consequences that can arise from it. 

The lack of Internet regulation has allowed for businesses to obtain typically private information. And yes, it can be a good thing - like recommended readings on Amazon.com or an ad for the band you like - but does it invade our privacy? The companies do not think so.  And if they can continue to increase profit from collecting and marketing data, they never will. 

Imposing regulations for online marketing would be a tricky issue though. Once government regulation of the Internet starts, it will be hard to stop it. So In Thomas Claburn's article "Privacy versus Personalisation" alternatives such as an opt-out program are described. Claburn said one approach is to allow Internet users control over what information is collected about themselves. Another suggestion is for companies to better inform consumers of companies' privacy policies and what data is colllected.

The CDD and other advocacy groups have called for a "Do Not Track" list similar to the "Do Not Call" list. Claburn said, "Talk of a Do Not Track list is a clear red flag that it's time for online marketers to address consumer concerns about privacy and manipulation. If they don't, others - regulators and legislators - could step in." 

So to keep our freedom of speech safe, we better get used to seeing ads and websites act like they know us and all of our interests. Or we have to continue to find ways to avoid being targeted by advertisers and big businesses looking for more profit.