Privacy conference panel: Consumers give up privacy too easily

Consumer Reports News: June 03, 2009 12:19 PM

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"Alas, consumers will sell their privacy for a candy bar; in fact, they demand to be able to do so."

That's a sentiment posted on Twitter here at the Computers, Freedom and Privacy Conference in Washington D.C. But advocates worry that consumers are unaware of just how much of their private information is being mined, retained, and shared by companies that engage in online behavioral marketing—and beyond.

"A global system has emerged designed to collect information about each of us wherever we are, and target us for advertising and increasingly for politics," said Jeff Chester, Center for Digital Democracy. "And it's designed to affect our behavior."

Industry representatives contend targeted advertising is effective and something consumers want. "If you can target ads to interested users, they will be effective," said Microsoft's Mike Hintz. "Most consumers would prefer to see an ad that they're interested in."

But the Federal Trade Commission worries that more data is being collected than is necessary. "Data collection may be disproportionate to the benefits achieved," said Jessica Rich, of the FTC's Bureau of Consumer Protection.

Google says it is addressing some concerns with its ad preferences manager. We'll take a look and let you know what we think soon.

Google's approach may not be sufficient to protect privacy, privacy advocates say. "It's an onerous system when I've got to opt-out through Google, opt-out through Microsoft," said Amina Fazlullah, U.S. Public Interest Research Group. "There's a value to privacy that's priceless. It's not the ads that bother me, it's the system behind them that bothers me. "

What are your thoughts on privacy and online advertising? Are you willing to sell your privacy "for a candy bar?" Are you aware of what information is collected about you and how it's being used?

Follow my coverage of the conference here on this blog and live on Twitter at: www.twitter.com/DonnaTapellini —Donna Tapellini