Category: adolescent privacy

Microsoft’s Research into Behavioral Targeting & Profiling via its Beijing Research Lab

There’s a “Great Digital Game” going on, where companies such as Google, Facebook, Microsoft and leading ad agencies compete to expand the clout of online marketing around the globe.  As I told EU and other privacy regulators last Friday, the Obama Administration is being pressed by US online marketers to forge trade deals that will allow the leading companies to conduct business in the  Asia-Pacific and EU region without worrying about serious privacy and consumer protection rules.  I do think it’s ironic–and really misleading–to point to online marketing as a U.S. economic success story that requires special treatment.  The revenues generated by Google, Facebook and the others are principally from advertising.  Whether they are truly models of innovation that will bring the kind of sustainable long-term job and economic growth we need is questionable.

At the core of the “Great Digital Game”–where U.S. companies strive to dominate the global interactive ad marketplace–is data collection for user targeting.  Microsoft, which has a principal online ad research facility in Beijing, was recently seeking a Senior Data Mining Analyst.  Read this excerpt from the job description and think about privacy, civil liberties in China and other autocratic regimes, consumer protection and the ethical role of U.S. online ad companies:  “Microsoft Ad Platform China is building world-class engineering teams in Beijing, focusing on online Ads related systems and services such as behavior targeting and advertiser analytics. The team partner closely with the Redmond Ad Platform team, enabling the discovery and inference of user profiles, intent and interaction while respecting privacy and trust, with the ultimate goal of maximizing benefits for users, advertisers and publishers…Core Job Responsibilities: Conduct and manage applied research and modeling work in the areas of user segmentation, profiling, and targeting. Research and experiment on data mining algorithms for user segmentation and dynamic segment expansion. Utilize data mining technologies and use various data sources, some of which may include MSN/Windows Live web usage, search query, demographic, subscription, and 3rd party data, to gain insight into Internet user behavior and intent that will set the foundation for Microsoft targeting offerings and data services. Provide complete solutions to business problems using data mining techniques, statistics and data analysis. Serve as subject matter expert and drive thought leadership in the areas of user profiling, ad targeting, and personalization for Microsoft online services.”

Google’s Eric Schmidt on Mobile Marketing [Annals of Why We Need Mobile Privacy and Consumer Protection Safeguards]

Google CEO Eric Schmidt gave the keynote address at the Interactive Advertising Bureau’s “Ecosystem 2.0” conference.  As reported, he explained that [our emphasis]:

“The smartphone is the iconic device of our time,” Schmidt told the record IAB audience of 750 in Palm Springs, California. A year ago, he added, he predicted that mobile use would surpass PCs within two years. “It happened two weeks ago. And the PC is not going to catch up,” Schmidt said, as he labeled the new era, “Mobile First.”…The hyperlocal potential of mobile, Schmidt continued, means that smartphones and tablets bring a practical application to marketing that no other medium can match: A connection that will lead you to the store, open the door, and direct you to a product you need. “A RadioShack ad can tell you where you are and how to get to the nearest store.” And equipped with Near Field Communication chip (NFC), the newest generation of smartphones not only can tell you what to buy, it can enable a tap-and-pay transaction…Think of the offers mechanisms for advertisers,” Schmidt offered. “We’ve spent 20 years trying to get here. And now there’s an explosion in commerce. Particularly for the consumer who says, “I want to buy something and want to buy it right now,” he added, “We can do it.”

And, in large part, that capability means that mobile media consumption “is happening faster than all our internal predictions.”

Some 78% of smartphone internet users already use their smartphones as they shop. And, as consumer comfort with – and acceptance of – new mobile technology continues, Schmidt envisions “a world, in the very near future, where computers remember things and you never need to worry about forgetting anything. You want it to remember something and it will. And you’re never lost. No one is ever lost. You never turn off the [mobile device] and you’ll always know where you are. And where you want to go….”

Leading Health, Privacy, and Consumer Groups Call on FTC to Protect Adolescent Privacy online

For Immediate Release:  Feb. 18, 2011
Child, Health and Consumer Advocates Ask FTC for Teen Privacy Protections, including Do-Not-Track and No Behavioral Targeting

Today a Coalition of Child, Health and Consumer Advocates filed comments on the Federal Trade Commission’s proposed privacy framework asking for increased privacy protections for adolescents.   The coalition includes leading advocates such as the Center for Digital Democracy, the American Academy of Child and Adolescent Psychiatry, American Academy of Pediatrics, Children Now, and the Consumer Federation of America.

Privacy protections are needed as teens are increasingly subjected to privacy invasions online. Teens are using new media technologies for key social interactions and to explore their identities. This increased use of digital media subjects them to wholesale data collection and profiling of even their most intimate interactions with friends, family, and schools. Meanwhile, recent research in psychology and neuroscience reveals that teens are more prone to risky behavior when their anxieties and peer relations are exploited. Privacy protections are needed to keep the online world social and safe.

Companies should not use data to behaviorally profile teens. The framework should also provide enhanced choice for adolescents, including a Do Not Track feature. In implementing “privacy by design,” companies should consider the needs and vulnerabilities of teens.  They should address those vulnerabilities by, for example, minimizing the amount of data collected from teens.  Data that is collected should be retained for only short periods and should be afforded greater security.

“Teens live online today,” said Guilherme Roschke, attorney for CDD. “This time of development and maturation requires privacy protections. Teens cannot go it alone against the vast data collection and profiling infrastructure of new media technologies that not even adults can understand.”

“Because of their avid use of new media, adolescents are primary targets for digital marketing,” explained co-signer Kathryn C. Montgomery, Ph.D. “The unprecedented ability of digital technologies to track and profile individuals across the media landscape, and to engage in sophisticated forms of targeting, puts these young people at special risk of compromising their privacy.”

The full coalition includes:

Center for Digital Democracy, American Academy of Child and Adolescent Psychiatry, American Academy of Pediatrics, Berkeley Media Studies Group, a project of the Public Health Institute, Children Now, Consumer Federation of America, Consumer Watchdog, David VB Britt, Retired CEO, Sesame Workshop, Ellen Wartella, Kathryn Montgomery, National Policy & Legal Analysis Network to Prevent Childhood Obesity, a project of Public Health Law & Policy, The Praxis Project, Privacy Rights Clearinghouse, Public Good, Public Health Institute, Tamara R. Piety, and World Privacy Forum

Guilherme Roschke
Staff Attorney / Fellow
Institute for Public Representation
First Amendment and Media Center
Georgetown University Law Center
T:(202) 662-9543
F:(202) 662-9634
gcr22@law.georgetown.edu
http://www.law.georgetown.edu/clinics/ipr/
**********

Arianna Huffington’s AOL Privacy Problem–Will She Be a “Progressive” and Limit Behavioral Targeting?

Ms. Huffington’s HuffPost used behavioral targeting and other forms of interactive marketing to help make the news site successful.  At HuffPost, the privacy issues involved with such practices were never seriously addressed.  But now Ms. Huffington has a new role as the editorial executive for AOL’s content service.   But AOL is engaged in extensive and manipulative forms of behavioral targeting–including the pervasive online targeting of teens, African Americans, health and medical consumers and patients, for financial service products, etc.  Like other online marketers, AOL claims such online tracking, profiling and targeting isn’t really personally identifiable–which is both inaccurate and deceptive.  We challenge Ms. Huffington to engage in a serious journalistic investigation of AOL’s privacy practices and redress them.  There should be absolutely no targeting of adolescents.  Behavioral targeting of African-Americans, financial and health products should be by prior opt-in consent only.  Ms. Huffington should be held responsible for AOL’s privacy and online marketing practices–and we expect her to address them as she increasingly plays a greater leadership role in the online ad industry.  Meanwhile, here’s what AOL says it does using behavioral targeting focused on African-Americans:

Behavioral. Target consumers based on their interests:

  • Black Voices. People who visit Black Voices for the latest in news, entertainment, sports, lifestyle, careers, money and more.
  • You can target the following subsections of the Black Voices audience:
  • Auto Intenders. In-market car, truck or motorcycle shoppers who are looking for specific makes and models. They read reviews, look at pricing and features, and research financing options.
  • Die Hard Sports Fans. Dedicated fans who follow professional and collegiate sports, stay on top of player rankings, and shop for sports memorabilia.
  • Entertainment Buffs. People who follow the latest news about celebrities, movies, music and soaps. They purchase DVDs, music and video games online and also take an active interest in memorabilia.
  • Money Minders. Affluent, older individuals who are seeking online financial advice, checking the performance of their investments, getting tax advice, planning their retirement and researching insurance options.
  • Moviegoers. Movie buffs who read the latest reviews, follow celebrity gossip and purchase tickets/DVDs online.
  • Travelers. Personal and business travelers who are interested in travel advice and deals. They use the internet to purchase airline tickets, book accommodations, make car reservations and research financing options.

Accurate. Pinpoint your customers with other powerful targeting solutions:

  • Develop a custom audience segment modeled after visitors to your site (Look-Alike Modeling).
  • Find African American households that have the greatest propensity to purchase specific products or brands (MRI Lifestyle Clusters).
  • If you’re sponsoring an AOL page, retarget consumers who have visited it (Sponsorship LeadBack).
  • Find your ideal African American audiences on the sites they are most likely to visit (Subnet Targeting).
  • Find AOL members who have selected the AOL Black Voices Welcome Screen as their homepage option, or who have indicated (through third party data) that someone in their household is of African American ethnicity (Audience Rosters).

and its behavioral targeting of consumers looking for mortgages and other financial products:

Behavioral. Target consumers based on their interests:

  • Business Decision Maker. Individuals with an active interest in business news and strategy.
  • Money Minders. Affluent, older individuals who are seeking online financial advice, checking the performance of their investments, getting tax advice, planning their retirement and researching insurance options.
  • Real Estate Intender. In-market individuals looking to buy, sell or rent property.
  • Small Business Owner. Small business professionals shopping for real estate, health care and office and computer equipment.
  • Investors. Affluent individuals who read business news, evaluate stocks, seek financial advice and conduct trades online.
  • Insurance Intender. Individuals seeking information about life, auto, home or health insurance.
  • Mortgage Intender. Individuals seeking information about mortgage rates and/or home loans.

and AOL’s adolescent targeting [for shame!]:
Behavioral. Target consumers based on their interests:

  • Active Gamers. Teens and adults looking for online and console game strategies, tracking game release dates and purchasing video games.
  • Television Watchers. Individuals who keep up with their favorite television shows via TV network sites and online communities.
  • Style Mavens. Trend-focused women interested in the latest fashion, jewelry, and health and beauty items. They like to feel as good as they look by also paying attention to diet and fitness. 
  • AIM Audience. Individuals who have visited AIM properties.

Microsoft on Privacy Regs vs its business model: “to monetize human attention”

As we prepare for a vigorous debate on protecting consumers and citizens, it’s useful to reflect how online marketing companies view the process.  This excerpt from a Politico story last month notes, that:

Representatives from Google and Microsoft agreed it is the companies’ jobs to make sure consumers can trust them with personal information by giving them more control over how that data is shared. But regulation is a slippery slope. “Our business model is to monetize human attention,” said Marc Davis of Microsoft’s Online Services Division. “Regulation does potentially threaten the value of that.” Added Google’s Betsy Masiello: “Those business models also rely entirely on user trust.” They agreed there’s no legal clarity over who owns what data, and whether online information is owned by the person who entered it online or the company who runs the platform that stores it. “We’ve created this new business class without any clarity,” Davis said.

As Google Expands Digital Food Marketing Clout, How Will it Protect Children and Adolescents from Online Junk Food Ads?

Google just announced plans to “to build its advertising and marketing business in the food and beverage industries,” including “establishing a food-and-beverage team in Chicago to link with advertisers and marketers.”   The online ad market leader hired a former Frito Lay and beer marketing executive who explained that the company intended to harness the “untapped potential in the digital world for food and beverage advertisers, and Google’s ability to work with them, based on proprietary analytics that map out consumer behavior.”   The exec–Karen Sauder–said that Google intended to use its clout with online media to generate a deep connection to users, including taking advantage of “some of the new location-based services and mobile technology that’s really untapped at this point.”

As our companion site digitalads.org documents, food and beverage companies, along with online ad companies such as Google, Yahoo and Microsoft, are targeting young people with digital ads for products linked to the youth obesity crisis (they are doing this in the U.S. and globally).  Google should play a leadership role and adopt new safeguards to ensure that no one under 18 is targeted by digital junk food ads–and that it undertakes a thoughtful analysis to address problems raised when targeting vulnerable groups.  We hope Microsoft, Yahoo and others will also do so.  We call on Google to embrace a “healthy” digital diet for its food and beverage marketing. This is an issue that will be on the policy radar in 2011.

Statement of Jeff Chester on the Department of Commerce’s Internet Policy Task Force Privacy and E-Commerce: a Bill of Behavioral Targeting “Rights” for Online Marketers?

The Obama Administration asks some important questions about protecting the privacy of U.S. consumers.  But given the growth of online data collection that threatens our privacy, including when consumers are engaged in financial, health, and other personal transactions (including involving their families), this new report offers us a digital déjà vu.   The time for questions has long passed.

Instead of real laws protecting consumers, we are offered a vague “multi-stakeholder” process to help develop “enforceable codes of conduct.”  If the Commerce Department really placed the interests of consumers first, it would have been able to better articulate in the report how the current system threatens privacy.    They should have been able to clearly say what practices are right and wrong—such as the extensive system of online behavioral tracking that stealthily shadows consumers—whether on their personal computer or a mobile phone.   The paper should have firmly articulated what the safeguards should be for financial, health and other sensitive data.  The report should have rejected outright any role for self-regulation, given its failures in the online data collection marketplace.  While the report supports a FIPPS framework, these principles can be written in a way that ultimately endorses existing business practices for online data collection and targeting.

This illustrates one of the basic problems with the Administration’s approach to protecting consumer privacy online.  The Commerce Department is focused on promoting the interests of industry and business—not consumers.  It cannot play the role of an independent, honest broker; consequently it should not be empowered to create a new Privacy Policy Office.   Having the Commerce Department play a role in protecting privacy will enable the data collection foxes to run the consumer privacy henhouse.  We call on the Administration and Congress to address this issue.  A new Privacy Policy Office should be independent and operate under the Administrative Procedures Act—ensuring there are safeguards for meaningful public participation and transparency.

The Commerce paper’s real goal is to help U.S. Internet data collection companies operate in the EU, Asia/Pacific and other markets as “privacy-free” zones.  Under the cover of promoting “innovation” and trade, I fear the U.S. will craft a crazy-quilt code of conduct regimes that they will claim should pass muster in the EU (which has a more comprehensive framework to protect privacy).  The Obama Administration appears to be promoting a kind of “separate, but equal” framework, where it will argue that no matter how weak U.S. privacy rules are, other countries should accept them as the equivalent of a stronger approach.  The new paper should have acknowledged the U.S. has to play catch-up with the EU when it comes to protecting consumer privacy.

We have been promised meetings with the new White House subcommittee on privacy, where consumer and privacy groups will raise these and other concerns.

Marketing Industry Leader dismisses new self-reg program for online behavioral targeting. Merely a “stop-gap” and “partial solution” measure

Jack Myers is a long-time leader in the marketing and ad industry.  Writing today on the new FTC report, Myers explains that “The recently implemented Forward i logo, while ambitious and well-intentioned, is a stop-gap measure intended to demonstrate to federal regulators and Congress that the industry can police itself.  Ultimately, the solution is likely to evolve to a universal opt-out model combined with a requirement that consumers proactively override their opt-out choice on a one-by-one basis – essentially a reversal of existing self-regulation…the industry cannot continue to assume that partial solutions will meet the requirements of regulators.“

Five Ways to Protect Privacy

[a version we wrote of this ran in Multichannel News]
Five Ways for Digital Marketers to Protect Consumer Privacy

If George Orwell were writing today, 1984’s Winston Smith would be working as a “Doublespeak” specialist crafting privacy policies and creating self-regulatory regimes.  That’s not what consumers and citizens need in the interactive marketing era.   All Americans should have their privacy respected and protected when they go online—including when they use mobile phones.

1.     Tell your users what you actually say to your advertisers—about how the profiling and targeting process really works.  There is a disconnect that is unfair and deceptive between what companies say in their privacy policies and pitch to their clients and potential partners.   Be honest about the “360 degree” ways you engage in online marketing.

2.     Don’t collect information and target consumers based on their interests in finance and health.  These two most “sensitive” categories should be opt-in only.   When consumers go online for loans, credit, mortgages, and health concerns they require the upmost privacy.  Although online financial, health and so-called lead-generation advertising is big business, consumers should not be forced to have their online financial and health behavior stealthfully-tracked and compiled.  The risks to consumers are great if we don’t develop special rules for this data.

3.     Racial and ethnic profiling data should also be opt-in. Hispanics, African-Americas, Asian-Americans and other minorities are increasingly the focus of a growing behavioral targeting and online marketing apparatus.  In the “offline” world, we have witnessed a disturbing use of racial profiling practices to discriminate against individuals.  In today’s online environment, users are being identified as being a member of a racial or ethnic group without either their awareness or consent.  While we all want to see the growth of diversely owned online publishing, it should not be done at the expense of civil liberties in the digital era.  We must prevent the growth of online racial profiling, that when tied to income, geography and other data can be used to create 21st Century forms of discrimination.

4.     Don’t use neuromarketing and other subliminal and subconscious-based advertising.   Fortune 1000 advertisers and online marketers such as Microsoft, Yahoo and Google are using new forms of ad testing and development involving the latest tools of neuroscience, such as fMRI’s and EEGs.  Neuromarketing’s goal is to directly influence a consumer’s subconscious, and when combined with the power of online data targeting,  offers powerful—and frightening—new forms of manipulation.

5.     Users need to consent to having their profiles be bought and sold on so-called online ad exchanges.  Selling off the right to target a consumer online, via real-time auctions that happen in milliseconds, is dehumanizing.  Nor should we permit the growing combination of offline and online databases to be used for targeting, including via these new digital auction houses.

Interactive marketing is now a fundamental operating principle for the cross-platform media economy throughout the world.   But right now, it’s a digital “wild west” that doesn’t serve the interests of consumers, citizens and most marketers.

Behavioral Targeting is About Tracking an “Individual,” Explains Online Marketer

The online ad industry and lobby better stop saying that cookies and other forms of data collection aren’t personally identifiable–so-called PII [personally identifiable information].  As we know, behavioral targeting (BT) identifies, profiles, tracks and targets an individual.  Here’s just one example of how online marketers discuss what BT really is when they are talking among themselves and to clients (our emphasis):

What is behavioral targeting?
Behavioral targeting is a technique used by online advertisers to improve the effectiveness of their campaigns by increasing the relevance of product offers and promotions on a visitor-by-visitor basis.

Behavioral targeting uses information collected on an individual’s web-browsing behavior, such as the pages they have visited or the searches they have made, to select and deliver online ads to the users who are most likely to be interested…As the effective mixing and mining of audience data has become increasingly important to online advertisers, the role of behavioral targeting and retargeting have grown more central…The typical approach to behavioral targeting starts by using web analytics to group visitors into discrete channels. Each channel is analyzed and a virtual profile is created to for each channel…
Most platforms identify visitors by assigning a unique id cookie to each and every visitor to the site, allowing them to be tracked throughout their web journey.  An example is a user who visits content about auto insurance, clicks on an insurance advertiser button or banner, and then searches for “auto insurance.” This user would be assigned to the insurance prospect channel and the next time that user goes to Yahoo they will see ad for insurance…