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The Next Frontier of Consumer Exploitation By Corporations

First time accepted submitter alisonuw writes "So what if Google knows where I'm planning my next vacation and suggests hotels for me? Sure, it's creepy, but is there really any harm in companies tracking my info to target ads to me? Professor Ryan Calo (UW law) is out with a new paper that demonstrates the real harm behind these practices, making consumers vulnerable to making decisions that go against their self-interest (ie: predatory lending, price inflation, etc). The Atlantic has an article today that outlines the new research."

42 of 166 comments (clear)

  1. obvious by Tom · · Score: 2, Interesting

    You need a paper to demonstrate that other people making decisions for you is not necessarily in your best interest? Seriously?

    And yes, they make the decisions. You are a fool if you think that it's just suggestions. I've worked in corporate environments long enough to know that the people who "prepare" the decision are really the ones making it, because by the selection you make, the way you present the alternatives and the data you choose to use or discard, you can pretty much make sure that any of the choices left is in your interest.

    --
    Assorted stuff I do sometimes: Lemuria.org
    1. Re:obvious by icebike · · Score: 2

      Oh come on, other people are not making decisions for you just because they show you an advertisement.

      In fact most people simply gain more resistant to advertising the more blatant it is.

      You over state your case. Yet, I wager you consider yourself more immune to advertising than the average man on the street.

      --
      Sig Battery depleted. Reverting to safe mode.
    2. Re:obvious by Opportunist · · Score: 5, Insightful

      Not because of ads, but because of the choices they offer you. False dilemmas are the staple of politics today, and people are easily pushed into those false "either or" decisions. "For us or against us!" (really? I neither care 'bout you nor your terrorists, leave me alone!). "Bail banks out or the economy crumbles!" (nope, bail out the people holding saving accounts and let the bank fall flat on its face, worked well for Iceland. Remember Iceland? The country that started it all? They're through with their recession, we barely started ours).

      I'm pretty sure the average reader can come up with more examples. We are presented false choices, where one is so horrible that we grudgingly accept the not quite that horrible one as the "right" choice.

      What we fail to do is think about other options. There are usually plenty of them. But they are not as favorable for those that present us the false dilemma.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    3. Re:obvious by Opportunist · · Score: 2

      Representative democracy is the poster child of "being offered a limited set of (viable) choices".

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    4. Re:obvious by Joce640k · · Score: 4, Insightful

      Oh come on, other people are not making decisions for you just because they show you an advertisement.

      What do you think politics is?

      Politicians can use this data to make sure their public image is exactly what the public will respond to. Politicians don't need actual policies any more, just this data.

      Once they get voted in, you can bet they're making decisions for you.

      --
      No sig today...
    5. Re:obvious by Tom · · Score: 2

      In fact most people simply gain more resistant to advertising the more blatant it is.

      That's not true. We all think it is, but it isn't. Marketing has gone to great lengths to feed us a bunch of lies, so we don't jeopardise the core business model.

      In-your-face advertisement works very, very well. Maybe not in the sense of promoting a product, but for establishing a brand and creating imaginary brand presence, it is fantastic.

      Oh come on, other people are not making decisions for you just because they show you an advertisement.

      Again, you would be surprised how effective advertisement is and how little it takes to swing a decision one way or the other. Sure, if you are dead-set on something else from the go, no ad will convince you otherwise, but most people aren't on most matters.

      --
      Assorted stuff I do sometimes: Lemuria.org
  2. Does It Matter If Companies Are Tracking Us ? by Taco+Cowboy · · Score: 5, Insightful

    The question is not does it, or does it not matter companies are tracking us, they ARE tracking us regardless

    The real question is what are we, the consumers, going to do?

    We can be passive - and let them (the corporations / governments ) manipulate our lives with all their suggestions/advises via their ad/marketing/propaganda campaign (as has been happening for the past few generations)

    ... or...

    We can be on guard and do our best to make sure that our lives stays our lives, not the lives the governments / corporations want us to have

    The society in the future will have a new gap, a gap in between people who live their lives as individuals, or, people who live their lives as sheeples

    --
    Muchas Gracias, Señor Edward Snowden !
    1. Re:Does It Matter If Companies Are Tracking Us ? by Opportunist · · Score: 4, Insightful

      I hope you're right. The pessimist in me tells me, though, that you won't have the option to live and not be sheeple. Why bother with you, individual, uncontrollable and no asset as a consumer? You don't consume what you shall, you don't do what you shall, you may even pose a threat to the status quo. Begone!

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    2. Re:Does It Matter If Companies Are Tracking Us ? by nickmh · · Score: 2, Insightful

      OK, For Gggaaawwdddssss Sake!!!!!!!!!!!!!!!!!! Can you guys not understand what you're saying here? In the original submission the writer talks rationally about practices, privacy, decision making etc etc. And the first reply talks about the Corporate/Government relationship. HEY!! Corporate/Government relationships is called fascism. And people want to talk rationally about privacy, decision making and practices? Are you lot insane. You're trying to rationalise Fascism!!!!! Wake the F&^%$ UP!!! Get your self VPN, SSH Tunneling, BitMessage, Encrypted system. Otherwise you're passive, and subject to what ever these sick power hungry, self preserving A*&^ls can come up with!

    3. Re:Does It Matter If Companies Are Tracking Us ? by jopsen · · Score: 4, Insightful

      We can be passive - and let them (the corporations / governments ) manipulate our lives...

      If "them" includes your government then you're truly screwed... The government is exactly the structure you should use to control big corporations, through regulations.
      If you don't trust your government to do a good job at that... well, then you should fix your government first.

      Sure, you can try not to buy from big corporations, but at this point it is not realistic to do this successfully on a large scale

    4. Re:Does It Matter If Companies Are Tracking Us ? by maxwell+demon · · Score: 3, Insightful

      AdBlock and RequestPolicy can help you to not ever see a single advertisement. It's quite some time since I've seen the last ad on the web.

      And I'm not even in principle against ads. However, internet ads as installed now have several undesirable properties:

      • They are often obnoxious (animations, sound, eating CPU time, placed at points where they disturb reading of the contents). That's the original reason why I started to block ads. Initially I only blocked obnoxious ads.
      • They come with tracking. That's today the main reason why I block all ads (and many other third-party stuff like Facebook/Google+ buttons and Google Analytics).
      • They are an infection vector for malware.

      I can tolerate most offline advertisements because they don't include those features. Some offline advertisements (especially TV ads) are, however, also obnoxious (which is the main reason why I rarely watch private TV). But at least they don't track me (I still have analogue TV, so no back channel!) and they don't carry malware (good luck trying to infect my old "dumb" TV :-)).

      --
      The Tao of math: The numbers you can count are not the real numbers.
    5. Re:Does It Matter If Companies Are Tracking Us ? by pepty · · Score: 3, Interesting
      Advertising based on tracking is certainly the centerpoint of these articles - but how about pricing based on tracking? Legalities aside, how do you feel about Amazon choosing the price you personally see for an item based on a tracking model that decides which pricepoints will yield the highest profit from you personally? For one thing, that means the end of comparison shopping websites - they become meaningless if the prices they scrape are not the same as the prices you will have to pay.

      But Calo also offers another option: "Imagine," he writes, "if major platforms such as Facebook and Google were obligated, as a matter of law or best practice, to offer a paid version of their service."

      I thought about a parallel to that a while ago: imagine having free/paid versions of an app. The paid version has no tracking/advertising, and the price is continually adjusted so that 50% of the users choose to pay and 50% choose advertising/tracking. At that point you would actually know the median value of privacy.

      Or you could just dig through the financials of CVS drugstores: you can get a prescription drug discount plan there, but it requires you to waive your HIPAA privacy rights (signature required every year) to access it. It's popularity (if the plan isn't withdrawn because of bad PR) should say much the same thing.

    6. Re:Does It Matter If Companies Are Tracking Us ? by dywolf · · Score: 2

      the remedy is more regulation, in the form of declaring an absolute Right to Privacy. its amazing how many things such a simple right would fix.

      --
      The guy who said the election was rigged won the presidency with the second-most votes.
    7. Re: Does It Matter If Companies Are Tracking Us ? by loneDreamer · · Score: 4, Insightful

      This also already happens. I'm right now paying the price of deciding to avoid credit and use my own money to live. Turns out the system really wants you to borrow, and through the beauty of credit scores, all manner of daily things become a hassle or downright impossible unless you play along. The tracking of info might appear harmless... till companies and people rely on it and require it. Then your choice is between sheeple or outcast.

    8. Re:Does It Matter If Companies Are Tracking Us ? by smittyoneeach · · Score: 3, Insightful

      Declaring it is one thing. Defining such is another.

      --
      Get thee glass eyes, and, like a scurvy politician, seem to see things thou dost not.--King Lear
  3. Only the stupid by MrBigInThePants · · Score: 2, Insightful

    Seriously. Who here pays attention to the ads or does not have an ad blocker?

    I never even see ads anymore. Even the ones my ad blocker does not block.

    This only affects stupid people.

    Stupid people don't need protection.... ...wait...

    They don't need protection from the world. Stupid people need protection as in condoms so they stop breeding.

    1. Re:Only the stupid by CAPSLOCK2000 · · Score: 5, Insightful

      This goes way beyond mere advertising. It also involves the price you pay and which products are available in shops near you. Restaurants may increase the price of their meals if they know you are very hungry, it's unlikely that you will leave once you have been seated. Cigaret-vendors will lower their prices if they figure out you are trying to quit.
      The old adagium "Knowledge is power" still holds.

    2. Re:Only the stupid by Gaygirlie · · Score: 4, Insightful

      They don't need protection from the world.

      It would appear that it never occurred to you that these people FAR outweigh the "smart" people and therefore it actually is in YOUR own, best interests to protect and guide them.

    3. Re:Only the stupid by johanw · · Score: 3, Informative

      I use multiple: AdBlock Plus and Ghostery in my browser, a hosts file and since I'm using Peerblock anyway to block the RIAA and cronies from my torrent client I added an ads blocklist there too.

    4. Re:Only the stupid by Opportunist · · Score: 4, Insightful

      If the choice of stupid people wouldn't affect the choices I have, I'd agree with you.

      For reference, see politics. Or (*shudder*) TV.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    5. Re:Only the stupid by Jah-Wren+Ryel · · Score: 3, Informative

      I use multiple: AdBlock Plus and Ghostery in my browser, a hosts file

      Try RequestPolicy it is better than a hosts file because it is on a per-website basis. You can let "slashdot.org" pull content from "fsdn.net" while blocking all other websites from pulling content from "fsdn.net"

      And it is a whitelist system rather than a black-list like the hosts file, adblock and ghostery, so nobody sneaks through just because you haven't updated it. The downside is that if those approaches are like driving an automatic transmission, using RequestPolicy is like driving a stick-shift.

      --
      When information is power, privacy is freedom.
    6. Re:Only the stupid by faedle · · Score: 2

      I think you missed the point. This was about marketing, not advertising (advertising is just one small part of marketing).

      So you're blocking advertising, great. But what if the fact you have an adblocker installed on your machine (which is generically trivial to detect, BTW) means you automatically pay 10% more for everything? That's the world the author of the original study is warning us of. That the data collected via widespread tracking can be used to penalize one class of customers for fuck-all reasons.

      It's already begun. There have been cases of Orbitz presenting higher prices to Mac users. Or some of the pricing slipperiness Amazon has engaged in.

      This sort of "different pricing for different people" is already somewhat pervasive in society, even in B&Ms. As a member of a particular grocery chain's frequent shopper program I get special coupons every three months in the mail. Those coupons are custom-printed for me, and are different than the coupons somebody else on the same program would get, because they're based on my shopping habits and demographics. At what point does that start heading into becoming discrimination and/or "unfair"?

  4. Re:Obvious? by icebike · · Score: 3, Insightful

    No, your definition is bogus.

    Advertising is meant to inform you that Coke is available here. You were thirsty anyway or you wouldn't have noticed it.
    Advertising a steaming fresh sack of shit won't get you customers who were really looking for new shoes.

    --
    Sig Battery depleted. Reverting to safe mode.
  5. This only affects stupid people ? by Taco+Cowboy · · Score: 2

    This only affects stupid people

    HA !

    Those who think that they are not stupid, ARE

    --
    Muchas Gracias, Señor Edward Snowden !
  6. In store tracking by assemblerex · · Score: 4, Interesting

    If you have a phone, as you walk around a shopping center or store will are being tracked.

    If you linger in the baby aisle, expect to get baby ads and coupons without asking for them. You might even find out your teenage daughter is pregnant from coupons you get.

    Very intrusive: Get served ads to your phone and all devices based on store browsing and the kind of stores. You have no choice to opt out.
    Medium intrusive: Get asked if you would like coupons for what they think you like. Ads on devices or apps that are ad supported are targeted.
    Low level: You get coupons on your receipt based on your walking pattern and habits. (this already happens)

    Future exploitation, the terrifying final form.
    Location based A.I. scans your physical body for any and all brand name clothing. Tied into the parking lot cameras, it logs your car and plate number. Using sets of data (The estimated outfit cost, car value, car color psychological assessment, insurance carrier) it evaluates your income bracket and psychological profile.
    A.I. scans all store records for purchases that match what you are wearing. If the purchases is detected to have not been made at the store, coupons and ads targeted at those articles are sent (You too can get Feragamo shoes here).
    Each time you stop, the time and location and nearby goods are noted. Any regular walking patterns are logged. If you walk the same pattern every time, the lcd screens change to ads targeting you along your route.
    As you approach merchandise displays, eye tracker record what items you look at and what in the adverts your eyes followed.
    As follows: 15seconds female cleavage, 5seconds product, 1second dog.

    Unregulated ,the future of consumer exploitation is terrifying.

    1. Re:In store tracking by Opportunist · · Score: 4, Funny

      Given the quality of the average AI, you'll get ads for women's lingerie and directions to a nearby transvestite club, the product and a beasty porn page.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    2. Re:In store tracking by tlhIngan · · Score: 2

      If you have a phone, as you walk around a shopping center or store will are being tracked.

      If you linger in the baby aisle, expect to get baby ads and coupons without asking for them. You might even find out your teenage daughter is pregnant from coupons you get

      Two things.

      1) Phone systems have no way to identify you. That is key - just because they can track which aisles you walk down and pause in front of, doesn't mean you're identifiable. You're just "Person 1" to them.

      2) The baby tracking thing uses purchases, not what you looked at.

      The first point is very important because everyone assumes that when recycling bins are tracking you that they can make the magic leap to identifying you personally. They can't. Your phone emits a bunch of ID numbers, but the store cannot link those ID numbers to you personally.

      In fact, if you're worries about that kind of tracking, you should be extremely worried about online shopping, because the moment you purchase something, you link your behavior to an identity. Especially common sites like Amazon. If you browse a site then leave, you're like a shopper in a store - they have a list of what you did, but not who you are.

      The second point is they used loyalty card information, and because purchases were linked to an identity.

      It's vitally important to realize when you're tracked but anonymous, and tracked but linked to your identity. The former is creepy, but relatively innoculous.

      When it's linked to an identity, things get interesting because one has to realize online shopping can track you even deeper than ever before. Especially since some of the bigger sites host ads (Google-owned company ads, mind you... - so Google ends up knowing your shopping habits and your identity.).

  7. Re:It's much more than that ... by Anonymous Coward · · Score: 3, Insightful

    How about NOT even showing a better-off individual cheaper alternatives on a flight search.

  8. Re:It's much more than that ... by Daniel+Dvorkin · · Score: 2

    How about NOT even showing a better-off individual cheaper alternatives on a flight search.

    Which is scummy, to be sure, but doesn't sound anything like OP's hyperbolic scenario of doom.

    --
    The correlation between ignorance of statistics and using "correlation is not causation" as an argument is close to 1.
  9. Re:Obvious? by Anonymous Coward · · Score: 5, Insightful

    Coke is a fresh sack of shit, it's not water, juice or milk and provides no significant benefits at a remarkable markup. The fact that this was your example is not even ironic, it's simply sad.

  10. Caveat emptor by Bearhouse · · Score: 2

    As always, responsible people should ensure they check the facts before spending money.
    I find the Internet, including Goggle quite useful for this, actually... /sarcasm
    Recently I got a much better price for renting a car via a specialist site than I could on the renter's own website, and it's often the same for hotels.
    So yes, I can believe that you may not get the best deal if, say, Hertz partners with Google to target you.
    But nobody is forcing you to click on the ad...
    Yet.

    1. Re:Caveat emptor by TubeSteak · · Score: 2

      Recently I got a much better price for renting a car via a specialist site than I could on the renter's own website, and it's often the same for hotels.

      The kicker is that the specialist site keeps up to 25% of that better price.
      You can almost always call up [company] and ask them to beat the price you found on [website] and they'll do it, because they'll make more money that way.

      --
      [Fuck Beta]
      o0t!
  11. Re:It's much more than that ... by Opportunist · · Score: 4, Interesting

    I had to work with unemployed people quite a bit in my life. It's fascinating how they are being pressed into "jobs" for ... well, whatever the economy currently needs. No matter whether they can do it, whether they have any kind of affinity with it or whether they are absolutely unsuitable for it.

    Over here, to keep your unemployment money, you have to jump through the hoops presented to you. So people do it. You get sent to various training courses that change in interesting ways over time. About 10 years ago, everyone was sent to a "web designer" and "network administration" class. Today, they prefer to send people to classes dealing with nursing and geriatric care. Again, whether the people have any kind of social skill, whether they can actually lift weights that easily pass the 100 lbs (or 200 lbs, depending on the person they have to lug around), whether they have any kind of affinity with it, doesn't matter.

    People are exchangeable. And expendable.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  12. Re:Obvious? by Jah-Wren+Ryel · · Score: 5, Insightful

    No, your definition is bogus.

    No, your definition is bogus.

    Advertising (really marketing) is at least two things:

    1) To inform you of options to fill a need.
    2) To convince you that you have a need.

    (1) is useful in society, (2) is destructive to society

    The problem is that practically all marketing tends to (2) over time. For example, sexy girls in advertisements. When they are in ads for stereotypically men's products (like beer) its obvious they are of type 2, but even when they are in ads for women's products like clothing they are still manipulative because they tell women if you just had this product you would be sexy too.

    --
    When information is power, privacy is freedom.
  13. Loyalty Programs by bostonidealist · · Score: 3, Insightful

    Brick and mortar stores are legally barred from overtly providing different pricing for customers based on age or gender. They can't have a price tag on an item that reads:

    Women Over 35 - $32.99
    Women 35 And Under - $29.99
    Men 38 And Over - $28.99
    Men Under 38 - $26.99

    However, common loyalty programs at stores profile customers by age, gender, purchasing habits, and all sorts of other demographic criteria and selectively issue coupons and promotions that have the same result (e.g., a drug store might print out a coupon for a male customer for lady's perfume to incentivize a purchase before Mother's Day, but wouldn't issue such a coupon to female customer who is inherently more likely to buy the product).

  14. Re:It's much more than that ... by meanthinking · · Score: 2

    - Presenting tariff plans, insurance plans, deals 7 packages, any-kind-of-option in complex and opaque ways that use 'friendly' language, and pics of smiling people — so they can channel you towards whatever 'sounds' like a good deal.
    - Changing the way the issue is discussed so the opinions form to 'prefer' what lobbyists favour (creationism, climate change, health-care, the wars, politicians)
    - The entire PR and lobbying industry and everything it does.

    And thats just the top of my head. — Did you seriously think you invented all the choices you made? You were shown pre-prepared points to discuss, and you just chose one. Not much freedom (or intelligence) in that.
    Then they make people who think outside the norm seem like freaks, so you tend to ignore them, rather than discuss them. Try this for size: http://www.alternet.org/print/visions/chomsky-us-poses-number-threats-future-humanity-our-youll-never-hear-about-it-our-free-press

  15. Re:It's much more than that ... by onyxruby · · Score: 2

    This kind of thing already happens. There was a controversy a while back when it was discovered that travel sites show more expensive travel options to Mac users first. Since macs cost more than PC's it was presumed their users had more disposable income.

  16. Nothing by rsilvergun · · Score: 4, Interesting

    we're going to do absolutely nothing. We're too busy living our daily lives. You're guard will slip as daily life grinds you down, and you'll gradually join the sheeple. My history teacher said it best. "I was a radical in high school. Then I got a job, a car, house wife kids, the works. One I had something to lose I got real conservative real fast".

    Me? I pick my poison. I'd rather have a strong central gov't I can at least try to influence and use. Maybe if we can get the schools to indoctrinate kids on the importance of democratic participation instead of the intrinsic beauty of capitalism....

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
  17. It's the only remedy that can work by rsilvergun · · Score: 3, Informative

    not saying it _does_ work, but I think you'll find people are too busy living their day to day lives (work, family, kids, social networking) to monitor all the bad things companies do. There's a reason we started regulating companies. They did really bad things until we did.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
  18. Re:Obvious? by CrimsonAvenger · · Score: 2

    Coke is a fresh sack of shit, it's not water, juice or milk and provides no significant benefits at a remarkable markup.

    Coke is a significant jolt of caffeine and sugar. If that's what you want, buy it.

    If, on the other hand, you prefer your caffeine hot, buy coffee or tea, and sugar it to taste....

    --

    "I do not agree with what you say, but I will defend to the death your right to say it"
  19. Asking for hypocrisy by GPS+Pilot · · Score: 3, Insightful

    Note well, some media outlets have praised the Obama campaign for using "Big Data" tools to target voters. Do you want or expect this chief executive to hypocritically discourage business from using the same techniques? http://www.technologyreview.com/featuredstory/508836/how-obama-used-big-data-to-rally-voters-part-1/

    --
    That that is is that that that that is not is not.
  20. Re:Irony by Tom · · Score: 2

    When you give someone money that they didn't earn, it's fair to attach strings to that money.

    Your conclusion is correct. Your assumption isn't. I have earned any unemployment money I might get all my life, by paying into the system. In my country, there is an amount deducted from your monthly wage specifically to cover unemployment. It's basically an insurance system, except that it's state-run.

    So yes, anyone who did work before becoming unemployed did in fact earn that money.

    --
    Assorted stuff I do sometimes: Lemuria.org