Facebook‘s launch of instant personalization caused an uproar in the blogosphere. The company ran a pilot with sites such as yelp.com, where if you are logged in to Facebook and visit these sites, the content served would be personalized based on your profile information. Users have the option to opt out. Blogs talked and talked about it, and reports resurfaced about how Mark Zuckerberg made a statement that Facebook “doesn’t believe in privacy.”
Facebook has been growing at a very fast pace and during one week surpassed Google as the most visited site on the Internet. What % of Facebook users know of and care about privacy issues? I was once asked, “what is your stand on it”? I had no answer. On one hand as a consumer, I am exasperated at how easily available personal information is on the Internet. On the other hand as an e-commerce executive, I cannot help but realize that without that information, how would we get new customers? How would we use targeting and segmentation to grow the business? My consumer side wins over the business side. If you Google yourself, you come across several sites that replicate information from social networks. Not only that, these sites have other personal information that is in public records of the government. I spent one day emailing a number of sites to remove personal information – one site refused because the information was publicly available in government records. It is scary because now I have access to information on how much a person spent on a house, or anything that the person may have written or contributed to in the past. A couple of sites get your business information from some place (probably LinkedIn), and you have vendors calling you all the time after subscribing to that site. I got my info removed – they put it back up after a few months.
I wonder, where will Facebook go in terms of privacy? Will users start leaving if Facebook lowers privacy barriers? Has Facebook’s growth reached a maximum, and the only way to go from here is down?
Privacy is not restricted to social networks alone. A large number of retargeting and behavioral targeting companies have cropped up. Retargeting is relatively new, where you put a cookie on visitors who come to your site, and you serve them ads on other sites that they visit to bring them back to convert on your site. Behavioral targeting has different business models – your visitor data is contributed to a common cookie pool, and ads are served to users on other sites based on how closely they match your site visitors. In layman terms, once you visit a site, the site’s ads “follow you around” on the Internet. Many e-commerce sites use these programs, and I have seen ads follow me! It is easy to tell which ones are retargeting and which ones are behavioral — if you get served ads on a site you recently visited, it is retargeting; if you see ads for competitors of the site you visited, it is behavioral. I don’t know how much of personal information the sites have access to, but once a cookie is dropped, they can track you everywhere you visit. The best way to avoid this is clearing cookies after every browsing session. However, each time you visit a site it will drop a cookie, so clearing cookies frequently can be taxing.
I don’t mind cookies because it helps save passwords and sites remember my login and information. As long as sites do not know who I am by name, I don’t care that they know which sites I visit. But you have to wonder, how much more advanced will these sites get, since they have access to so much information? Retargeting business models are becoming a commodity because it is easy to do, cost is low, and there is very little differentiation among vendors. If there is any advanced capability, it is easy to replicate. Vendors have to be smart and devise advanced ways to target and segment, which requires consumer information.
Recently, it was made illegal to pass credit card information automatically. For example, some sites use Webloyalty where at the end of an online purchase, you can sign up for access to certain discounts and offers. Your credit card information will, in some cases, automatically be passed if you choose to sign up, and in some cases there maybe an automatic monthly fee. This is how you get that $9.99 free credit score charge monthly in your credit card statement!! It is now illegal to automatically pass credit card information, and the customer has to enter credit card info again after signing up – this serves as an additional layer to ensure that the customer is aware of the charge. LinkedIn does something similar and shady. You can sign up for a Pro account but you have to call to cancel and cannot choose the option to opt out of monthly automatic fee. I complained to Consumer Affairs and disputed their charge on my credit card. It is such a blatant manner to fool the consumer – clearly, if the consumer wants to sign up for a monthly service, he/she will do so. Removing that option just shows that the company is being greedy and does business in taking advantage of consumers.
There need to be legal rules and regulations around online privacy. There are always loopholes, but laws such as the above on credit card information force businesses to change their business practices and make them more compliant.