New Super-sized Customer Database for Amazon?

dtjohnson writes "Amazon.com has applied for a patent to create an online customer database which would allegedly contain 'massive amounts of intimate information about its millions of shoppers, including their religion, sexual orientation, ethnicity and income.' From the article: "The database, which would combine information disclosed voluntarily by customers with facts gleaned from public databases, conceivably would give Amazon a larger or more detailed profile of its customers than any other retailer. Does this cross the privacy line or is it just reasonable data gathering to make retail sales more responsive to customer needs?"

Comments

It Certainly Does

[greatcelerystalk]

Of course it crosses a privacy line, for me at least. When I shop at Amazon.com, I generally know what I want to buy already, and I very rarely pay any attention at all to Amazon's recommendations. I think this is a case of Amazon trying to over-extend itself; I shop Amazon for the low prices and the hassle free shopping experience, but if they do begin asking for too much information, I will have to take my business elsewhere.

Re:It Certainly Does

[davevt5]

While there are many "techie" people like greatcelerystalk who know what they want, we have to keep in mind that Amazon is selling to the entire spectrum. My mom, new to computers this year, finds comfort in the Amazon experience. It's an entire shopping mall--just what women love (yes, I am generalizing). So shoppers who know what they are looking for, or are simply buying on price, may not use the recommendations, I would suspect that a significant, if not majority of the population may be enticed to buy something. I admit to having purchased several books that were recommended to me.

Now, the more significant issue revolves around the depth of the information Amazon is amassing on you and me. Sure, you can learn just as much about me from my blog or slashdot journal, but that's my choice. I recognize that Amazon has stated "opt-in" information. But when was the last time you read a EULA or the Privacy Policy page for NewEgg? You can be opted-in to just about anything. Then, personal private data is stored, waiting to be hacked into or. Or better yet, published in the name of research!

Ultimately, this trend will not stop. Twenty years ago, had people known the level of personal information that we would be storing today, they would have had the same reactionary quivering that we feel today. It's simply the unstoppable progression of technology integration into human life.

Business Models...

[Capt James McCarthy]

The privacy issue aside, it is interesting to see how these companies are utilizing data mining to more accuratly predict a products 'success.' I mean will there come a day when a person creates the next widget and it can be determined within minutes that the widget will be best sold for $5.00 to maximize purchasers in the 18-35, married, hetro-sexual, non-christian, males, living within 12 miles of a large body of water, who rent a home, and own one vehicle. Then company 'A' can offer you X dollars for the widget patent based upon those numbers.

So going to write the open-source algorithm(s) for this?

Illegal.

[eddy]

Based only on the blurb, this database would almost certainly be completely illegal within the EU (Directive 95/46/EG, unless it's obsolete).

In Germany this kind of Information is forbidden

[keyboardsamurai]

After Germany's experience during second World War, it became apparent that information about sexual orientation, religion, race and social ancestry are mostly used to do evil things. Hence in Germany there are laws that (in some circumstances) prohibit the use of such information.

Re:So my question is

[Xugumad]

Well, I'm quietly considering that I frequently buy things for other people (gifts probably account for the majority of what I buy from Amazon, and occasionally I buy stuff for someone who doesn't have a credit card, and they pay me back in cash), and thinking what that must have done for my profile.

Certainly, it recommends some _really_ odd stuff from time to time...

Re:Funny, but no

[TubeSteak]

They already asked Yahoo and Google for the contents of their databases.

Amazon's A9 search engine used to be partnered up with Google, but they kicked 'em to the curb around May 2006 and brought Windows Live Search onboard as a replacement.

Re:Nice

[tomhudson]

"Nothing (no one) will stop Amazon from sharing (selling) its data with other companies."

Actually, they better not try this with their Canadian partnerss, or they'll find the backlash to be vicious. Including expensive audits and damages paid to anyone whose info has been collected.

YOu're simply not allowed to collect and hold information that has nothing to do with the actual transactions with your customers. And you're not allowed to collect information, beyond name, address, and telephone number, for anyone who isn't a customer. "Data mining" and collecting for irrelevant stuff such as sexual orientation has been illegal up here since January of 2004.

Even information that was collected with yur consent can't be "re-used" for any other purpose.

Also, they have to supply anyone who asks with a copy of their file. Could be expensive and embarrassing for Amazon.

As for prior art, here in Canada HRDC (a gov't agency) did this - a HUGE database with all sorts of information - and was forced to drop it when 29,000 Quebecers sent in requests for their files in one week as a protest. Compliance costs $$$$.

If Amazon wants to lose their contract with Canada Post, let them go ahead with this.