WASHINGTON – If you’ve ever worried that you’re being watched while you’re online, rest assured: You are. At least that’s what two consumer advocacy groups that on Wednesday filed a complaint against online advertisers are claiming.
In their 50-page complaint, the Center for Digital Democracy (CDD) and the U.S. Public Interest Research Group (US PIRG)—both public-interest advocacy groups working toward a more diverse and competitive online environment—claim the data-collection and interactive-marketing system currently shaping the U.S. electronic marketplace has invaded surfer privacy by relentlessly tracking Internet users.
The advocacy groups argue that online advertisers are creating data profiles to use in an increasingly sophisticated and personalized targeting scheme. Both organizations said that, because of the failings of current privacy disclosure policies, users have no idea their surfing habits are being aggressively monitored. They note that many companies collect “secondary data” that can track every move an Internet user makes online—including where he or she enter a site, how long the user stays on a page, and even the movement of the mouse.
“The emergence of this online tracking and profiling system has snuck up on both consumers and policymakers and is much more than a privacy issue,” said Ed Mierzwinskiy, consumer program director of U.S. PIRG. “Its effect has been to put enormous amounts of consumer information into the hands of sellers, leaving buyer/consumers at risk of unfair pricing schemes and with fewer choices than the Internet is touted to provide.”
Of particular significance, the groups contend, is Microsoft’s use of data gleaned from its Hotmail service, which is used by more than 30 million surfers per month. Both organizations claim that Microsoft uses the information to sharpen the ad-targeting efforts of the software giant’s new set of adCenter data collection services.
“Microsoft, like Google and Yahoo!, is actively rewriting the rules that govern the online marketplace,” said CDD Executive Director Jeff Chester. “It is the [Federal Trade Commission’s] job to make certain that these rules reflect more than corporate self-interest.”
The groups demand the FTC launch an investigation into the online marketplace to expose practices that compromise user privacy, halt any practices that do abuse consumers, and craft policies—and recommend federal legislation—to prevent such abuses.
Not surprisingly, reps from all three companies named in the complaint skirted the issue by insisting that consumer privacy is important to them.
“Consumer trust is essential to the success of online business, and helping protect consumers’ privacy is a top priority for Microsoft in our development and implementation of online services,” said Microsoft’s senior attorney, Mike Hintze, in an emailed statement to The Washington Post. Meanwhile, Yahoo! spokesperson Nissa Anklesaria told the paper the company has “a longstanding commitment to providing users with clear notice and choice” on how their data may be used. For its part, Google weighed in with a statement from spokesperson Barry Schnitt, who said “the trust of the user is paramount” to Google’s advertising programs.
