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Facebook tailors ads based on app use, outside websites

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Facebook users beware: The company has – yet again – unilaterally changed its mind about its data collection practices. As users should know, that’s not a good thing for their privacy.

Last month, the dominant social network announced that it’s altering the way it determines which ads to show users of its site. In the past, the company based its ad choices on what users were doing on Facebook – what pages they liked, what links they clicked on.

Now, in addition to using that data, the company will also take into account the things users do online or on their smartphones outside of Facebook’s website and apps. So if Facebook sees you visiting an adult-themed site or using an exercise app, it might use that information to serve up ads while you’re on Facebook.

The change is only the latest example of the company pushing the boundaries of users’ privacy concerns, either by collecting more data from them or by taking more liberties with what it does with their data. It also represents just the latest example of the company crossing a line that it had set out in the past to reassure users concerned about the extent of its data collection practices.

“This is what Facebook does,” said Jeff Chester, executive director of the Center for Digital Democracy, a consumer advocacy group. “Facebook is going to use multiple ways to track their users and sell them to their advertisers.”

Facebook declined to make available a spokesman who could comment on the change. But in a post on its website, the company pitched the move as a benefit for users, saying that it would allow the company to offer users more relevant ads. The company also said that the move would give users more control over what ads they see.

But the change pointed out just how much data Facebook is collecting on its users, much of it likely without their knowledge. And it illustrated just how difficult it can be for Facebook users to protect their personal information and habits – even when they are aware of the company’s ravenous data collection.

This is a company, after all, that three years ago agreed to 20 years of oversight to settle a complaint filed by the Federal Trade Commission that alleged that the social networking giant misled users about its privacy practices.

Facebook has long tracked users’ movements off its site through the use of the “like” button and invisible files embedded in many Web pages. But when consumer advocates in the past raised concerns about what the company would do with that data, the company reassured them by saying it wasn’t using the data for targeting ads. But that was then.

The problem with the new program, privacy advocates say, is not just that Facebook might use the information to target you with potentially embarrassing ads. It’s also that the type of fine-grained information that Facebook is collecting – which is then tied to the personal information users have given to the site about things such as their age and marital status – can be used by advertisers to potentially make inaccurate conclusions about people. It also can be used without consumers’ knowledge or awareness to discriminate against them, offering higher prices to some people based on inferences drawn about their finances.

“Decisions are being made about us that we don’t necessarily understand or have any control over,” said John Simpson, the director of the Privacy Project at Consumer Watchdog, an advocacy group.

To be sure, Facebook has provided users a way to opt out of the targeted ads, but it’s not terribly user-friendly. The company has chosen to ignore the “do not track” feature found in all the major browsers.

Instead of simply turning on that feature – or just flipping a switch on Facebook itself – the company is directing users to a site run by the Digital Advertising Alliance, an industry trade group. From there, users can opt out of any number of online ad networks.

That sounds easy enough, but because the opt-out choices are set with a cookie – a small file saved in the browser – users will have to repeat that step for each browser on every computer they use to access Facebook. What’s more, if they follow the advice given by many privacy advocates and clear their cookies, they’ll have to remember to go back to the DAA site and opt out again, because its cookie will have been wiped out with the rest.

To avoid the targeted ads on Android or Apple smartphones or tablets, users will have to wade into their settings and find the option to limit ad tracking or opt out of “interest-based” ads. Even if users take those steps, that doesn’t necessarily mean that Facebook won’t continue to track them – it just means the company promises not to use that information to serve targeted ads.

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