Category: medical privacy

A Venture Funder Calls for Opposition to Privacy Rules Online–Cites the Need to Collect Financial, Pharma, and Youth Data


“Lightspeed Venture Partners is a leading global venture capital firm that manages over $2 billion of capital commitments.” Jeremey Liew is a managing director of the fund, with “a particular interest in social media, commerce, gaming and methods for increasing monetization.” Lightspeed is a backer of many high tech concerns, including online ad and data collection/targeting companies.   Writing in the company’s blog, Mr. Liew cites the recent call for online privacy safeguards.  He then writes [our emphasis]:

 

 “While it is always hard to argue against privacy, the impact of this level of restriction would be enormous for companies relying on online advertising. Financial services and pharma/health are two of the leading categories for online advertising; the youth demographic is highly attractive to many advertisers, and limiting behavioral targeting to one day without an opt in severely restricts the usefulness of the data.

 

I’ve spoken to a number of people at venture backed ad networks, and it is clear to me that more needs to be done to organize feedback to the FTC and congress about the proposed rule changes and legislation.”

 

I think Mr. Liew has helped underscore our concern.  Sensitive data involving a person’s finances, health, and their children, require serious consumer safeguards.

 

Google PR Job Goals: “mitigate negative media coverage that might lead to unnecessary regulation”

Google has a job opening for a “Communications Manager, Multiple Focus Areas.”  Here’s an excerpt from the job description:

As a member of the Communications team based at Google headquarters in Mountain View, California you will…devise specific campaigns that establish solid contacts with journalists, face-to-face meetings with commentators and other opinion formers and develop print and web-based materials targeted at a range of different audiences, and counter misinformation and mitigate negative media coverage that might lead to unnecessary regulation or interfere with our business and ability to serve our users in other ways. Managers are very strong writers who can process complex technology issues – through blog posts, FAQs, video scripts and more – and explain them in clear language internally and externally. 

Technology Policy Institute Spins the Privacy Debate in D.C.–Group funded by Some of the Biggest Data Collection Companies

Today, the Technology Policy Institute (TPI) is holding a Hill forum on privacy and the Internet.  The group’s announcement for the event states that “More privacy, however, would mean less information, less valuable advertising, and thus fewer resources available for producing new low-priced services.  It is this tradeoff that Congress needs to take into account as it considers new privacy legislation.”

What an absurd, reductionistic, and intellectually-dishonest claim.  First, this group is funded by some of the largest companies engaged in behavioral data collection and also fighting meaningful privacy policies.   That includes Google and Time Warner.  TPI’s other funders involved in some form of data collection and targeted interactive marketing include AT&T, Cisco, the National Cable and Telecommunications Association and Verizon.  Rep. Cliff Stearns, the ranking member of the House Subcommittee on the Communications, Technology, and the Internet is speaking at the event: that committee is currently drafting privacy legislation to protect consumers.  Panel speakers include TPI supporters Google and Comcast.  The lone privacy group on the panel, CDT, is funded by Google and others.  One academic on the panel also works for a high-tech consulting company.  The other panel academic has done fine work on social networks and privacy.

What makes TPI’s posturing absurd, beyond its funding conflicts, is the current economic crisis.  Consumer privacy laws are required to ensure that our financial, health and other personal transactions online are conducted in a responsible manner.  Anyone–or group–who believes that we can’t have both privacy and a robust online marketplace is out of touch.

IAB Works to Undermine Obama Consumer Protection Plan [On its Exec. Board includes Google, Time Warner, Disney, NYT, CBS, WPP]

The Interactive Advertising Bureau (IAB) signed a July 20, 2009 letter sent to Rep. Barney Frank of the House Committee on Financial Services raising questions–and really attempting to undermine–the Obama Administration’s proposed Consumer Financial Protection Agency.  Others signing the letter included the Business Roundtable, Consumers Bankers Association, Consumer Data Industry Association, Financial Services Roundtable, the Real Estate Roundtable and the U.S. Chamber of Commerce.  The IAB wasn’t the only ad lobby group signing the letter; so did the 4A’s and the DMA.  My colleagues in the consumer community view the letter as an attempt to derail the bill [the letter, which asks for a delay on the bill, says that “there will be significant dangerous, unintended consequences if the legislation is enacted in its current form.”]

Why would the IAB be concerned about the creation of a new powerful consumer financial watchdog?  It’s because their members work with companies engaged in digitally-related financial products–including mortgages, loans, credit cards, and so-called lead generation services.  The IAB benefits from the hundreds of millions spent year year on interactive ads for financially-related services (Among the top 15 digital advertisers in 2008 were Scottrade, Tree.com, TD Ameritrade Holding Co, Bank of America, FMR Corp, Experian, etc.). The IAB is clearly afraid of having an agency that would be empowered to investigate how online marketers sell and promote a wide range of financial products online.

We do wonder whether IAB board members that support the Obama Administration’s proposal (which is widely backed by consumer groups) understand the implications of the position it has taken.  Personally, I believe the creation of the new agency is critically important.  We must ensure that American consumers are never again victims when buying financial products.  Given that most of us will be learning about and purchasing financial services online, the proposed new agency will have to address how a number of IAB’s members engage in digitally-delivered financial services.

Progress & Freedom Foundation Comes to Aid of its Data-Collecting Backers (Using a `save the newspapers’ as a ploy to permit violations of consumer privacy protection!)

This report from Internetnews.com on the Progress and Freedom Foundation’s “Congressional” briefing illustrates how desperate some online marketers are that a growing number of bi-partisan congressional leaders want to protect consumer privacy.  So it’s not surprising that some groups that are actually financially supported by the biggest online marketing data collectors in the world would hold a Hill event to help out the friends who pay their bills.

It should have been noted in Ken Corbin’s that Google, Microsoft, Time Warner (AOL), News Corp. (MySpace) financially back the Progress and Freedom Foundation (PFF).  Other behavioral data targeting `want to be’s’ who monopolize U.S. online and other platforms are also backers:  AT&T, Comcast, NBC, Disney/ABC, Viacom/MTV/Nick, etc. For a list, see here.

PFF and some of its allies deliberately distort the critique of consumer and privacy groups.  We are not opposed to online marketing and also understand and support its revenue role for online publishing.  But many of us do oppose as unfair to consumers a stealth-like data collection, profiling and ubiquitous tracking system that targets people online.  One would suppose that as a sort of quasi-libertarian organization, PFF would support individual rights.  But given all the financial support PFF gets from the major online data collectors, how the group addresses the consumer privacy issue must be viewed under the `special interests pays the bills’ lens.

PFF and its allies are playing the ‘save the newspaper’ card in their desperate attempt to undermine the call for lawmakers to protect consumer privacy.  Newspapers and online publishers should be in the forefront of supporting reader/user privacy; it enhances, not conflicts, with the First Amendment in the digital era.  Finally, PFF’s positions on media issues over the years has actually contributed to the present crisis where journalism is on the endangered species list.  This is a group that has worked to dismantle the FCC, eliminate rules designed to foster diverse media ownership, and undermine network neutrality.

PS:  The article quotes from Prof. Howard Beales of George Washington University (and a fCV,ormer Bush FTC official with oversight on privacy).  Prof. Beales was on the PFF panel.  Prof. Beales, according to his CV has served as a consultant to AOL and others (including  Primerica and the Mortgage Insurance Companies of America).  Time Warner, which owns AOL, is a PFF financial backer.  All this should have been noted in the press coverage.

Google’s “Health Vertical” Division and the YouTube `Branded’ Channel for Obesity-related Medical Product

Google is in, as we know, the interactive marketing of health products and medical information.  Here’s an excerpt from Advertising Age on one of Google’s new YouTube related efforts.  We are deeply concerned about the role of interactive health marketing, including the techniques used to present information, influence consumer behavior, and collect user data.

Excerpt: In the video, Viki, a middle-age blonde, tears up recounting her moment of truth: A couple of years ago she was so obese that she could not chase after her toddler to keep him from running into the street…If this sounds like a setup for a weight-loss ad, that’s because it is. But not for a diet shake, pill or plan. The video is for Ethicon Endo-Surgery’s Realize adjustable gastric band — a device placed around the stomach that restricts food intake. The video is on Realize Band’s branded YouTube channel.

“Video is such a powerful medium for people who are having this type of surgery,” said Mary Ann Belliveau, managing director of Google Health Vertical. “What the channel does is give the patients a home for this, so they can get a more thorough experience, specifically with the company and the brand.”…The Realize band’s YouTube channel went live June 20 and already has received nearly 8,000 channel views. Ethicon also has a branded site for the band, where patients can learn more about the surgery and join the device’s online support program. In the video on YouTube, Viki describes her own experience with the Realize band. On the Realize website, consumers can read Viki’s diary, as well as those of other patients. Complementing Viki’s story on YouTube, there is a video simulating implantation of the band, and another explaining how to financially prepare for the surgery, which costs $17,000-$26,000 on average…”

source:  Gastric-Band Maker Reaches Out with YouTube Channel.  Marissa Miley.  Ad Age.  July 6, 2009 [sub required]

Online Consumers Require Real Privacy Safeguards, Not the Digital Fox [AAAA, ANA, BBB, DMA & IAB] in Charge of the Data Hen House

The self-regulatory proposals released today [2 July 2009]  by five marketing industry trade and lobby groups are way too little and far too late. This move by the online ad industry is an attempt, of course, to quell the growing bi-partisan calls in Congress to enact meaningful digital privacy and consumer protection laws. It’s also designed to assuage a reawakened Federal Trade Commission–whose new chair, Jon Leibowitz, recently appointed one the country’s most distinguished consumer advocates and legal scholars to direct its Bureau of Consumer Protection (David Vladeck). The principles are inadequate, even beyond their self-regulatory approach that condones, in effect, the “corporate fox guarding the digital data henhouse.” Effective government regulation is required to protect consumers. We should have learned a painful lesson by now with the failure of the financial industry to oversee itself. The reckless activities of the financial sector—made possible by a deregulatory, hands-off government policy–directly led to the current financial catastrophe. As more of our transactions and daily activities are conducted online, including those involving financial and health issues–through PCs, mobile phones, social networks, and the like–it is critical that the first principle be to ensure the basic protection of consumer privacy. Self-dealing “principles” concocted by online marketers simply won’t provide the level of protection consumers really require.

The industry appears to have embraced a definition of behavioral targeting and profiling that is at odds with how the practice actually works. Before any data is collected from consumers, they need to be candidly informed about the process–such as the creation and evolution of their profile; how tracking and data gathering occurs site to site; what data can be added to their profile from outside databases; the role that data targeting plays on so-called first-party websites, etc. In addition, the highest possible consumer safeguards are necessary when financial and health data are involved. Under the loosey-goosey trade industry principles, however, only “certain health and financial data” are to be treated as a “sensitive” category. This would permit widespread data collection involving personal information regarding our health and financial concerns. The new principles, moreover, fail to protect the privacy of teenagers; nor do they seriously address children’s privacy. (I was one of the two people that led the campaign to enact the Children’s Online Privacy Protection Act).

The failure to develop adequate safeguards for sensitive consumer information illustrates, I believe, the inability of the ad marketing groups to seriously address online privacy. The so-called “notice and choice” approach embraced by the industry has failed. More links to better-written privacy statements don’t address the central problem: the collection of more and more user data for profiling and targeting purposes. There needs to be quick Congressional action placing limits on the collection, use and retention of consumer data; opt-in control over profile information; and the creation of a meaningful sensitive data category. Consumer and privacy groups intend to work with Congress to ensure that individuals don’t face additional losses due to unfair online marketing practices.

[press statement by the Center for Digital Democracy]

Protecting Privacy and Consumers: Testimony on Behavioral Targeting Before House Commerce Subcommittees

Last week, I testified on the threat to both consumer privacy and welfare from the growing data collection, profiling, and targeting interactive online marketing system.  I told Congress it was critical to enact legislation that would protect consumers, especially as they use online and mobile networks for financial and health-related transactions (credit card applications, banking, health inquiries, etc.).  As you can see from the testimony, I said we should be able to have an online privacy policy that  ensures the public is protected, while also promoting the growth of the commercial online medium.

The link to the testimony via a press release is here.

AT&T, Time Warner, Microsoft and Facebook Join New Business Group with Ties to Obama Administration

In the age of social media marketing, what may lobbying look like when the Lincoln Bedroom meets Web 2.0?  This new “progressive” business group will also have to address the special interest agendas of its members, including online marketing and data collection.

excerpt via PR Week about the launch of Business Forward:  The group’s wide-ranging roster includes AT&T, Facebook, Hilton, IBM, Microsoft, Pfizer, and Time Warner and was founded by Democratic strategists… The goal for Business Forward is to provide consistent support for President Barack Obama and the Democratic Congress.

National Journal reports that: Rather than lobbying, Business Forward’s initial aim will be hosting events around the country to focus on maximizing funds in the $787 billion economic stimulus package…It will be led by political operative Jim Doyle; former Viacom lobbyist David Sutphen, whose sister is Obama’s deputy chief of staff; former Obama media consultant Erik Smith; former Obama campaign staffer Julie Andreeff Jensen; and Hilary Rosen, former head of the Recording Industry Association of America. Business Forward’s founding members will pay up to $75,000 per year for a membership…

In a letter in Politico, Mr. Doyle explains that “We plan to spend our time encouraging business leaders to discuss how America can make the most of clean energy investments in our current budget, reduce hospital costs through better health care information technology and reform schools so that today’s students are better prepared for tomorrow’s jobs.”

Google Lobbyist Attack on a Consumer Group and its Foundation Funding: A Chilling Effect. And a Public Apology is Required

Consumer Watchdog is a public interest group in the muckraking tradition of Ralph Nader and his Nader’s Raiders.  They work on a broad range of issues, including health care, clean energy, affordable insurance, etc.  Recently they launched a project focused on keeping Google more accountable, and have raised a number of concerns about the company’s privacy policy, lobbying efforts, etc.   The Watchdog had been working on the health privacy issues raised in what was called the Stimulus package; it made public claims that Google was lobbying the bill–suggesting they were trying to weaken privacy safeguards.  Google strongly denied it, responding that Consumer Watchdog’s accusation was “100 percent false and unfounded.”  This charge by Watchdog–and likely other Consumer Watchdog’s activities such as its focus on privacy risks raised by the Chrome browser– obviously triggered some kind of reflexive anger from Google executives.

According to Watchdog and press reports, Bob Boorstin, Google’s Director of Corporate and Policy Communications, wrote to one of Consumer Watchdog’s foundation funders that: “I am hoping that as you consider the activities of your grantees and whether to renew your commitments, you will take these kinds of activities into account and consider whether there might be better groups in which to place your trust and resources. I would like permission from you to address a letter to your Board of Trustees or Board of Directors in which we can highlight the activities of this grantee.”

Mr. Boorstin’s use of the phrase “better groups” sent a signal to the foundation world:  don’t fund public interest organizations that work aggressively to make one the world’s most powerful companies accountable.  Google’s work to pressure a foundation to cut off support for a privacy group creates a chilling effect.  At a time when Google is increasingly the focus of concern from privacy and consumer groups, and many policymakers around the world, Mr. Boorstin’s letter can be viewed as a self-serving attempt by the company to stifle debate.  If a group such as Consumer Watchdog intentionally libeled the company, than Google can pursue legal action.

But Boorstin’s letter to a funder appears designed to send a strong signal to the foundation world that they shouldn’t financially support groups that critically question the company.  With Congress taking up privacy legislation this year, Google has a great deal at stake.  This is precisely the time when consumers require as many watchdogs as possible, to ensure that Google and other online marketers protect their privacy.

We read in press reports that Mr. Boortsin has since issued an apology, saying that “…I made a mistake in sending information about the group’s activities to the Rose Foundation for which I apologize.  Google supports the right of anyone or any institution to fund whatever group or project they choose.”  But we don’t see any apology on its official policy blog, where it should be.

Yesterday, the National Journal, which covers Washington DC politics and lobbying, reported that “Google is launching a new effort to counter its critics with stepped-up outreach to analysts, journalists, policymakers and think tanks.” [sub required].

Google has an opportunity here to make a break with how things are done in Washington, politics, with privacy policies, and the online ad business.  Groups such as mine and Consumer Watchdog, in essence, are asking Google to be the prototypical ethical corporation.  Become transparent, disclose, embrace openness, develop policies that inform and empower citizens and consumers.  I firmly believe it can do all that and still make a great deal of money.

My group is also funded by the Rose Foundation, as are many other privacy groups. That’s the foundation Mr. Boorstin pressured (they resisted, of course–but the message was sent to the funder world as intended).  Google knows well that philanthropic sources of funding to support privacy work are slim.  Google gives money to certain privacy groups–which in our mind raise conflicts of interests for them.  What’s needed are a growing global array of independent consumer organizations focused on the nature of the emerging digital economy–and which means Google will likely be the subject of serious scrutiny and debate.  Google should be welcoming such civil society activity–instead of trying to smother it.

This incident suggests that Google leaders need to seriously examine how best to address their critics–and also work harder to resolve conflicts within its corporate culture about its long-term ethical goals.

PS:  On the specific issues of digital health marketing and privacy, there’s more work to be done here.  Google, Microsoft and many others see a gold mine in online health marketing.  Google is interested in the health market.  Here’s an excerpt for a job they had open last year to be based in New York:

Senior Account Executive, Healthcare Vertical

As a Google Healthcare Account Executive, you’ll work with those who provide advertising solutions for companies that produce and sell consumables and health care products/services. The primary responsibility of the GMS Account Executive is to drive and grow new business revenue with Fortune 1000 advertisers in the healthcare Account Executive industry. You’ll manage business relationships to ensure that your clients’ needs and requirements are met. This will require you to serve as their advocate within Google while collaborating with other Google teams to provide them with a comprehensive portfolio of solutions and options. This is a high-adrenaline, client-facing sales role requiring deep industry expertise, proven sales ability with a particular penchant for closing deals, and a broad base of industry contacts. You understand and anticipate how decisions are made, and you’ll persistently explore and uncover the business needs of your key clients.

Responsibilities:

* Work collaboratively with the GMS team to drive revenue growth with new and existing customers in the Pharmaceutical Account Executive industry.

* Develop high-level relationships to serve as a trusted consultant with major customers to optimize their advertising expenditures.

* Generate business plans to define your selling strategies and tactics.

* Understand and adapt to Google’s ongoing product and technology developments.

* Manage multiple cross-product opportunities and projects.