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Law in the Internet Society
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The Absence of Marketing Regulations for Social Networks, and the Potential for Greater Privacy on Non-Profit Social Networks-- By MakalikaNaholowaa - 08 Nov 2009I’m Worried that Advertisers Are Learning Too Much About Me on FacebookCompanies use many lures to entice online users into surrendering their privacy, like discounts on goods or “free” access to resources for the bargain price of their identity and usage data. But corporate-America has negotiated no better deal with users for this information than on social networks. At sites like Facebook, LinkedIn? or MySpace? users feed private interests more data, at a higher level of detail, in real time, than was ever collected by a retailer’s registration form or user purchase history. With status updates, profile information, fan pages and events, users are telling social networks everything about themselves, right down to their favorite midnight snack. Information that could only be roughly inferred before is now freely offered up, straight from the horse’s mouth, and therefore with stunning accuracy. And of course the data is being put to work. For example, soon after creating a Facebook event titled “baby shower,” the ads served to my profile page included titles like “Are you a game-loving mom?” and “Win Disney on Ice Tickets!” Surveys show that Americans have always been suspicious about companies’ use of their personal information online. But, as people begin to notice the efficiency with which social networks mine the data they are fed to tailor advertisements at an individual level, users’ unease is rising. People are taking pause from their not subtle attempts to seem more interesting than their closest three or four hundred friends and developing concern about what CafeMom? and Disney are learning about them. This raises the question: what legal duties do social networks have when using personal information to sell advertising? The answer: pretty much none in the United States, and for practical purposes, none within the European Union either.The United States Doesn’t Care, the European Union Cares but Can’t HelpAmerican LawUS law is mostly silent with regard to how social networks handle user information, particularly in regards to marketing. At the federal level, address of marketing practices on social networks seems mostly to be happening at the FTC whose current approach is working with stakeholders to formulate principles for social networks to self-regulate. At the state level, the past two years have resulted in a smattering of social network specific bills centered on the public’s concern about children’s safety and the distribution of unflattering photographs online. Also focused narrowly on child safety, a working group of attorneys general from 49 states and the District of Columbia signed agreements with Facebook and Myspace in 2008 outlining a plan to decrease children’s risk of falling prey to sexual predators and peddlers of cigarettes and alcohol.The Law in EuropeWithin the EU, where the horrendous consequences of privacy infringement in World War II created a populous more protective of its human right to privacy, citizens fare better on paper. Social networks within the European Economic Area are subject to the same rules as other “data controllers.” This imposes restrictions on social networks’ use of personal data for marketing, such as how social networks share user data with third parties and how long they can retain a user’s data. Social networks are also prohibited from creating personal profiles about non-users with data inferred by information provided by users. However, the protection these provisions provide are practically voided by enforcement issues. Each member state is tasked with creating and enforcing their own local law consistent with the EU rules. This creates issues of uneven enforcement, penalties, and compliance that lessen whatever victory the EU rules represent for privacy advocates.Facebook Isn't Working in Your Interest and the Law Doesn't Protect You, so Move off of ItThe business model of popular social networks depends on marketing. Neither the US nor the EU are willing to enact regulations crippling that model. And, although social networks like Facebook are credited for continually working with governments to address privacy concerns, obligations to investors and the for-profit character of currently popular social networks make true respect for user privacy difficult to honor without real regulation. But a social network does not require a business model, investors, or profit goals. And if you remove the profit-focused elements from a social network, then there is no need for advertisers. Then social networks could stop infringing upon users’ freedom through the collection and manipulation of their data to enrich third party profit mongers. These types of social networks are available now.Facebook Alternatives ExistFor example, Kaioo, developed in Germany, is a non-profit social network funded by donations and offering very similar features as Facebook. Kaioo users own all of their data and Kaioo is working with users to develop terms and conditions that meet its community’s needs and desires on a site wiki. Kaioo is accepting registrations now. Another example, Yakkit, is a non-profit niche social network going into beta late this year. It was developed by two developers, an artist, and a small group of educators collaborating across the U.S. in the evenings after leaving their day jobs. Costs for the project have been paid for by a relatively modest government grant. Yakkit does not plan to have advertisements or to share user data for any type of marketing. Non-profit social networks like these do not address all concerns about privacy and social networking, but they demonstrate that people can have a forum for creating a community, in a form that has a proven demand, without being sold to the highest corporate bidders. And not-for-profit social networks like these are low level of effort alternatives to the monetized types dominating the landscape today. So tell your friends (and connections and buddies).# * Set ALLOWTOPICVIEW = TWikiAdminGroup, MakalikaNaholowaa |
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