FTC to investigate Facebook-Datalogix deal
In order to find out the ads that will help in purchasing, Facebook partners with Datalogix. It is a company that compiles the purchasing data of consumers from all retail stores. This particular move has solitude advocates for scrutinizing the deal.
Marc Rotenberg, Electronic Privacy Information Center president told CNET that he will ask federal trade commission for investigating Facebook-Datalogix deal and determining the business practices with recent Facebook agreement to settle all the privacy complaints.
In accordance to Facebook’s recent consent order resulted from the complaint that was bought by EPIC and also from other consumer privacy groups, it is pretty important for FTC to look closely at the proposal and determine whether the company complies with the terms and conditions.
Under the settlement terms that was finalized last month, Facebook has agreed to get the “express consent” of users before sharing info that is outside the patronage of the privacy settings. It also provides users “clear and prominent notice” anytime whenever the info is shared.
Center for Digital Democracy’s executive director Mr Jeff Chester says that he believes that FTC should investigate this as a part of consent decree review. He is very much concerned about combining all the offline and online consumer data. Ad exchanges also allow the data and they have to apply this in real time and sell them to the highest bidder, which again includes Facebook. They might use reams of other data for targeting Facebook users.
Facebook spokeswoman provided the statement that they are working with Datalogix for helping the advertisers who understand the Facebook ads working procedure. They also do this via partnerships with other firms like comScore and Nielsen through an advertising tool.
She also said that people share lots of personal info on Facebook and they have taken utmost care in measuring the Facebook ads’ effectiveness without compromising with the commitments. Datalogix matches the e-mail addresses as well as consumer info of the retailer’s loyalty programs alongside e-mail addresses of the people used to set up Facebook accounts.
They say that they will keep all the info anonymous and summate them into groups.
Finally, they will compile a report and offer to Facebook and their advertisers.
Sarah Downey, an online privacy analyst said that people can opt out from Datalogix site. There are different options for provisions and it is not clear immediately.