Consumer and Privacy Groups at FTC Roundtable to Call for Decisive Agency Action

Washington, DC, December 6, 2009 – On Monday December 7, 2009, consumer representatives and privacy experts speaking at the first of three Federal Trade Commission (FTC) Exploring Privacy Roundtable Series will call on the agency to adopt new policies to protect consumer privacy in today’s digitized world. Consumer and privacy groups, as well as academics and policymakers, have increasingly looked to the FTC to ensure that Americans have control over how their information is collected and used.

The groups have asked the Commission to issue a comprehensive set of Fair Information Principles for the digital era, and to abandon its previous notice and choice model, which is not effective for consumer privacy protection.

Specifically, at the Roundtable on Monday, consumer panelists and privacy experts will call on the FTC to stop relying on industry privacy self-regulation because of its long history of failure. Last September, a number of consumer groups provided Congressional leaders and the FTC a detailed blueprint of pro-active measures designed to protect privacy, available at: http://www.democraticmedia.org/release/privacy-release-20090901.

These measures include giving individuals the right to see, have a copy of, and delete any information about them; ensuring that the use of consumer data for any credit, employment, insurance, or governmental purpose or for redlining is prohibited; and ensuring that websites should only initially collect and use data from consumers for a 24-hour period, with the exception of information categorized as sensitive, which should not be collected at all. The groups have also requested that the FTC establish a Do Not Track registry.

Quotes from Monday’s panelists:

Marc Rotenberg, EPIC: “There is an urgent need for the Federal Trade Commission to address the growing threat to consumer privacy.  The Commission must hold accountable those companies that collect and use personal information. Self-regulation has clearly failed.”

Jeff Chester, Center for Digital Democracy: “Consumers increasingly confront a sophisticated and pervasive data collection apparatus that can profile, track and target them online. The Obama FTC must quickly act to protect the privacy of Americans,including information related to their finances, health, and ethnicity.”

Susan Grant, Consumer Federation of America: “It’s time to recognize privacy as a fundamental human right and create a public policy framework that requires that right to be respected,” said Susan Grant, Director of Consumer Protection at Consumer Federation of America. “Rather than stifling innovation, this will spur innovative ways to make the marketplace work better for consumers and businesses.”

Pam Dixon, World Privacy Forum: “Self-regulation of commercial data brokers has been utterly ineffective to protect consumers. It’s not just bad actors who sell personal information ranging from mental health information, medical status, income, religious and ethnic status, and the like. The sale of personal information is a routine business model for many in corporate America, and neither consumers nor policymakers are aware of the amount of trafficking in personal information. It’s time to tame the wild west with laws that incorporate the principles of the Fair Credit Reporting Act to ensure transparency, accountability, and consumer control.”

Written statements and other materials for the roundtable panelists are available at the following links:

CDD/USPIRG: http://www.democraticmedia.org/node/419

WPF: http://www.worldprivacyforum.org/pdf/WPF_Comments_FTC_110609fs.pdf

CFA: http://www.consumerfed.org/elements/www.consumerfed.org/File/5%20Myths%20about%20Online%20Behavioral%20Advertising%2011_12_09.pdf

EPIC: www.epic.org

Games Microsoft Plays: “consumer online behavior” tracked on its video gaming service [a “massive” invasion of privacy!]

Microsoft’s just announced a new consumer tracking and profiling tool for advertisers using its Massive video gaming platform service. Calling it a “breakthrough” in its press release, the new Microsoft/comScore research tool enables advertisers:

“… to see the direct impact that in-game advertisements have on consumer online behavior…, advertisers will get an inside look at the degree to which in-game ads motivate gamers to visit Web sites, conduct brand-related search queries and engage in other online actions, something that previously had gone unmeasured…Through this collaboration with comScore, we will also now be able to measure those consumer actions that result from in-game ads. We think this has the potential to literally ‘change the game’ for both advertisers and publishers who want to improve the effectiveness of their in-game ad efforts.”

AdEffx Action Lift for Gaming matches in-game console ad serving data from Massive with comScore’s third-party, post-campaign panel data to track and measure in-game advertising effectiveness. By combining Microsoft’s proprietary, non-personally identifying Anonymous ID data, which is common across Xbox LIVE and Microsoft Web properties (known as Windows Live ID), with user data from comScore’s panel of 2 million Internet users worldwide, comScore can determine if panelists who saw in-game advertising subsequently visited a brand’s Web site, searched brand-related terms or engaged in other online behaviors important to advertisers.”

Microsoft Advertising offers “Profile Targeting”

As we just told the BEUC conference on consumer protection and online marketing, we couldn’t make this up if we tried.  Here’s what Microsoft Advertising says it can do via its UK site for marketers:

Just say who, when and where

Profile Targeting can help you find the people you’re looking for by who they are, where they are and when you want to be seen by them. Just name the characteristics that matter most to you. It could be anything from the consumer’s age, gender or country, to the day of the week you want to target the audience on.

[and here’s what they say about behavioral retargeting, which they euphemistically now call “re-messaging“]”

With Re-messaging we can narrow our audience by finding the people who have already visited you. It means we can ensure they always stay intouch and help create continual engagement with your brand.  Re-messaging is effective on its own, but works at its best whencombined with other forms of targeting and campaign performance. By placing action tags on your website, we can track visitors throughout the course of their online journey and re-message them on our network. For example the consumer may have previously searched for a hotel but not booked, compared credit cards but not applied, or visited a promotional website. Whatever it may be, if they’ve gone part way to making a purchase or performing an action, we can help you continue the conversation and ensure that the relevant message is seen by the people it matters most to.

“Cookie Wars, Real-Time Targeting, and Proprietary Self Learning Algorithms: Why the FTC Must Act Swiftly to Protect Consumer Privacy”

That’s the title of comments filed at the U.S. Federal Trade Commission by my Center for Digital Democracy and U.S. PIRG.  I also just gave a presentation with the same name at last week’s meeting of data protection commissioners in Madrid, Spain.   It’s available here.

Here’s an excerpt:   Today, consumers online face the rapid growth and ever-increasing sophistication of the various techniques advertisers employ for data collection, profiling, and targeting across all online platforms. The growth of ad and other optimization services for targeting, involving real-time bidding on ad exchanges; the expansion of data collection capabilities from the largest advertising agencies (with the participation of leading digital media content and marketing companies); the increasing capabilities of mobile marketers to target users via enhanced data collection; and a disturbing growth of social media surveillance practices for targeted marketing are just a few of the developments the commission must address. But despite technical innovation and what may appear to be dramatic changes in the online data collection/profiling/targeting market, the commission must recognize that the underlying paradigm threatening consumer privacy online has been constant since the early 1990’s. So-called “one-to-one marketing,” where advertisers collect as much as possible on individual consumers so they can be targeted online, remains the fundamental approach.

AAAA Letter to DoJ on Microsoft/Yahoo Deal: `Mad’ Merger Men & Women Missing Some Truth in Advertising

The 4A’S advertising trade and lobby organization sent a letter to the Department of Justice yesterday supporting the Microsoft/Yahoo search merger deal.  Among the five signatories from some of the biggest and most powerful ad companies was the head of the Publicis Groupe. But missing from the `approve this deal’ letter was any acknowledgment that Publicis is a partner of Microsoft–something we and other consumer groups have asked the DoJ to investigate as part of its review.

The recent deal between Microsoft and Publicis includes the sale of Razorfish, combined online ad activities and also data sharing.   In addition, Microsoft is expected to own 3% of Publicis after the deal closes, according to the Wall Street Journal.

The letter to the DoJ should have disclosed this and other conflicts of interest.

The “Hidden Persuaders” returns with the growing role of Neuromarketing: “Your message or materials will be absorbed directly into the consumer’s subsconscious” [Annals of Mass Micro-Persuasion]

As we have explained to policymakers in the US and EU, the growing use of neuroscience techniques requires government scrutiny and regulatory safeguards. Even political campaigns appear to be using such methods.  No one should be permitted, in my opinion, to devise any public effort that is designed to deliberately influence the unconscious part of our brain.

Here’s an except from a research paper by a Nielsen backed neuromarketing firm called Neurofocus.   The paper is “Absorption:  How Messages Morph into Meaning And Value in The Mind,” and was written by Dr. A. K. Pradeep.  [published September 2008]

Engagement brings you to the threshold. Absorption carries you beyond, to the state where your message or other material has been fully taken in by the consumer’s brain... Full absorption is also when your message or materials or retail environment, etc. return the highest rate of impact and value for your investment. But neuroscientific research demonstrates that you cannot, and will not, reach that goal consistently and most effectively unless and until you understand how the brain actually functions, and you shape your messages/material /environment accordingly.

For example, as I cited above, we have identified 67 specific ‘best practices’ that should be implemented when words and images are presented on a screen (any screen, from a TV or PC to a mobile phone or movie theater). They are the result of advanced neurological research into various brain functions, and especially research that has delved into the mysteries of diseases like Alzheimer’s, and brain conditions like ADD/ADHD, obsessive/compulsive behavior, and bipolar disorder.

Follow these best practices, give the brain what it wants and likes most, and you stand the best chance of success for your brand and your investment. Your message or materials will be absorbed directly into the consumer’s subconscious, where we can measure them for their effectiveness at the level devoid of any ‘outside’ contaminating influences like education, language, cultural ethnicity or other factors.





Microsoft’s Mobile Behavioral Targeting includes deal with ad giant Publicis

The growing integration of data collection and targeting across key platforms by key online marketing conglomerates, such as Microsoft, with advertising agencies is one issue that policymakers must address.  Here’s an excerpt from a Sept. 21, 2009 announcement on Microsoft’s mobile marketing plans:

Publicis Groupe’s Phonevalley, the world’s leading mobile marketing agency and part of the VivaKi Nerve Center, announced today a strategic agreement to create customized mobile advertising solutions, technology and metrics that will run across Microsoft’s mobile web properties, including the Microsoft Media Network, Bing and MSN. The packaged solutions will be available in 14 markets worldwide, including the U.S., the UK, France, Italy, Spain and Germany.

This alliance strenghtens the relationship between Microsoft Advertising and VivaKi. It furthermore reinforces the VivaKi strategy to build a market leader in digital communications, in an increasingly mobile world.

Phonevalley and Microsoft Mobile Advertising will work together to design innovative packaged mobile advertising solutions for six industry verticals: luxury, retail, entertainment, automotive, travel and financial services… To efficiently drive the most qualified audience, the package would take advantage of the innovative ad formats and new targeted mobile media features such as behavioural targeting developed by Microsoft Advertising.

Additionally, by utilizing data from dedicated vertical research and post test results, advertisers can further improve the efficiency and efficacy of their campaigns to better engage with their target mobile audiences.

What unites Google & Microsoft?—Advancing Behavioral Targeting!

via New Media Age [excerpt]:

AOL, Microsoft and Yahoo are among six industry players to come together for an event to educate the market about behavioural targeting.  The invite-only event on 29 September at Microsoft’s offices is targeted at decision-makers within agencies and clients.

Google, Specific Media and AudienceScience are also involved.

Zuzanna Gierlinska, Microsoft Advertising’s head of Microsoft Media Network… who helped steer the initiative, said the group wanted to help brands feel more confident about behavioural targeting.

“We wanted to get these providers together and take what’s currently been talked about broadly in the industry to the next level,” she said…

The event will cover subjects such as the benefits of behavioural targeting to users and the role of creative agencies.

Online giants unite to offer behavioural targeting tips.  Suzanne Bearne.  New Media Age.  27 August 2009.  sub required

Microsoft’s “Sweeping Vision” for Online Ads: “unlocking the Holy Grail of marketing” by “mining user intent”

The digital data collection arms race is unleashing powerful forces focused on data collection and consumer targeting across much of the online world.  As advertisers meet to discuss and celebrate their accomplishment and plans, as part of Advertising Week, Microsoft is playing a leading role.  As you read about their plans from this excerpt in Adweek, keep in mind that they hope to bundle their search marketing platform with Yahoo!

Microsoft is heading into Advertising Week looking to capture the ad industry’s attention by laying out a sweeping vision for the online advertising market and the integral part it plans to play in its the future…At the heart of that undertaking is the plan to build a product that can determine exactly what ads Web users want to see and when. “At the core, the most important thing to us is mining user intent,” Howe [Scott Howe, corporate vp, Microsoft’s advertiser and publisher solutions group], said. “What does a user really want to see in the way of advertising.”

That’s easy in search. But intent is not so clear on content sites or social networks. “If Bing is step one [for Microsoft Advertising], step two is extending that engine to power the ads that someone sees across all display ad formats and multiple devices,” Howe said.

…”When people talk about behavioral targeting, often they’re talking about flat display formats on a PC — and we’re talking about across all digital devices,” he said. “And so, by having this engine power all the different things holistically, we’re actually in some respects unlocking the Holy Grail of marketing.”

Microsoft Pushes a “Behavioral Targeting Product Roadmap” and it is “Betting” on Increased Consumer Targeting, inc. “Retargeting.” Company Wants to “Live the Data”

The potential combination of the behavioral targeting technologies of both Microsoft and Yahoo! should be one of the key areas investigated by antitrust authorities.  Privacy issues are also important for regulators to address with the proposed deal.  So these current behavioral targeting job openings at Microsoft provide a glimpse into these issues.

Microsoft is now seeking a “Product Marketing Manager of Behavioral Targeting on the Audience Select team…The Product Marketing Manager will establish the requirements and go to market strategy for Microsoft’s Behavioral Targeting product. S/he will partner with a team of world-class engineers, client service, business operations, legal, privacy and other product marketers to envision and design the industry’s best targeting technology to connect advertisers with their audience. The candidate chosen for this position will be responsible for creating the product GTM roadmap, developing and prioritizing segment requirements and designing GTM models to support the sale and delivery of behaviorally targeted advertising. S/he will be Microsoft’s resident expert on Behavioral Targeting and will be the first person to explain and communicate business metrics – particularly sell-thru – to field, business, and engineering…Articulate the behavioral targeting product roadmap to key customers and partners, and aggregate industry feedback in a form that is actionable for development…Influence long-range, multi-release planning for behavioral targeting…Someone with a deep passion for advertising technology and a deep knowledge of the targeted industry…”

Then look at this position for a “Taxonomist/Audience Intelligence.”  Note that they include the fiction that Microsoft will compete with Yahoo!!!

Online advertising is the biggest growth opportunity for Microsoft. This business currently generates about $2B in revenue for Microsoft with tremendous opportunity ahead, given how the industry wide advertising is shifting to digital media. Join and help take our digital advertising to the next level to compete against Google and Yahoo with our initiatives in Audience Intelligence. Our group is chartered to develop an industry leading targeting system for all our ad products and services. Effective targeting helps an advertiser reach their core audience and will drive high value propositions to the end customers. We as a company is betting on this initiative to differentiate our advertising offerings to our customers and to further grow our advertising revenue.

We are seeking an experienced taxonomist to provide thought leadership in taxonomy, classification, and metadata management. Audience Intelligence enables 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. Our focus spans all types of digital advertising such as search, display and emerging media including mobile, gaming, video on demand, and IPTV.

And they also want someone to help its behavioral retargeting initiatives (which it calls remessaging!)

The Search & Media Network Group within Microsoft Advertising is looking for a rock star product manager to deliver against revenue goals for Microsoft Advertising’s Re-Messaging product, by driving global business planning and execution, product marketing and competitive strategy…We work to seamlessly combine a range of individual online advertising products that span search, display and audience targeting, into solutions that address advertisers’ core campaign objectives.
Your core mission will be driving business revenue and field sales engagement with the Re-Messaging ad product (also known in the industry as Re-Targeting)…
Live the data, by building a deep understanding of the key metrics associated with the Re-Messaging business, and driving analysis into trends and emerging opportunities…Specific partners will include product planning, trade / field marketing, sales, yield/monetization and more…