Privacy Policies and Behavioral Marketing Website Privacy PoliciesGeocities Geocities allowed customers to build free websites Monetized with banner ads Collected customer demographic data we will never give your information to anyone without your permission ID: 259464
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Chapter 11
Privacy Policies and Behavioral MarketingSlide2
Website Privacy Policies-Geocities
Geocities allowed customers to build free websites
Monetized with banner ads
Collected customer demographic data‘we will never give your information to anyone without your permission’Geocities sold data in violation of own policyFined by FTC
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Website Privacy Policy-Toysmart
Toysmart
collected data, privacy policy to never disclose
Toysmart goes into bankruptcy, data is valuable, creditors want to sellUS Bankruptcy court says no, destroy data, per privacy policy…
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Perception Vs Reality
Company privacy policy, not law is restriction on data collection
Americans believe online browsing is private…NOT!
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Web Site Privacy Policies
People want privacy, marketers want to target audiences, so personal data is very valuable
Some companies not responsible hire inmates to input data, so sex offenders steal and misuse…
Better to not have privacy policy?Matter of trust with customers…EU has ‘Safe Harbor’ with US companies due to more restrictive EU laws
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Model Privacy Policy
See pages 246 to 248
Simple is best
Make sure employees do not violateRecord dates enacted, and changedArchive copies
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Burden of Proof
Issue- what company promised in privacy policy
Or what plaintiff read?
Not clearSee Northwest Airlines and JetBlue casesPgP
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Behavioral Marketing
Online advertising is $45B industry
Movement is from contextual to behavioral marketing
Use clickstream data to track visited sitesCreates profileTargeted advertising based on profile
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Cookies
Most common form of behavioral marketing
Saves website settings
Use 3rd party cookies to deliver ads based on historySession cookies occur when user logs in, allows personal tracking
Facebook users are ‘products offered to advertisers’
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IE Cookie
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Flash Cookies
Not
deletable
by normal methodsSecurity concern, lots of dataCollect across browsersDo not expire, Zombie cookiesFlash Player Manager Settings:
http://www.adobe.com/support/documentation/en/flashplayer/help/settings_manager07.html
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Stored Browser Histories
Browser
urls
store personal informationFb page visitedhttps://www.facebook.com/eProfessor
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Device Fingerprinting
Panopticlick
http://panopticlick.eff.org
Clock settings, time zones, fonts, plug-ins…
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Privacy Concerns
To prevent cookies look into
Ghostery
DoNotTrackMeFTC favors industry self-regulation, but outdated by technology State data is being collectedSecure data
Obtain consent
Express consent to collect sensitive
data
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Deep Packet Inspection
ISPs have greater ability to harvest customer clickstream data than Google, but have not…yet, but could…
Deep Packet Inspection –like Total Information Awareness
Privacy advocates worriedCommunications Act of 1934 prohibits companies transmitting cannot divulge contents!ECPA allows divulging with consent
Cable TV Privacy Act of 1984 prohibits disclosure of PII…
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Behavioral Marketing and Privacy Policies
Failing to disclose that PII is shared can cost company, like Toys R Us…
PII = Personally Identifiable Information!
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Society, Technology and the Law
Privacy policy problems
Long, so seldom read
Confusing legalese, contradictory languageMisleading about data-harvesting practicesEnd users need to get educatedBeware of social engineering
Development of browsers that emphasize privacy
Congress and FTC can enact laws
and regulations
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