Better Information Retention

 

 News Website India

An estimated 201 companies in India used data from Facebook to target people with ads. This information was used by the government of India to investigate the companies and follow up on complaints. Due to this, Facebook is now facing fines of $500,000. 

This article will summarize the news story with links and quotes to sources that are relevant for anyone interested in understanding what happened and what some important takeaways are so they can avoid getting fined themselves. 

As a result of this fine, Facebook has been put on notice about what it needs to do regarding user privacy in order for itself not get fined again by the Indian government in the future. 

The issue has been about whether Facebook can use data from a company called DataXu to target people with ads. The government of India found out about this, and started looking into how this was done. 

The [C]ompany, Facebook's ad business partner [DATA XU], bought the data from a marketing firm called Axiom Research. This data was not bought by Axiom Research directly, but rather by clients of theirs who bought the data from Axiom Research. The clients then passed it along to DataXu for analysis. 

This included sensitive data like voter registration details and income information that could be used in the targeting of political campaigns. A portion of this data was then passed on to Facebook. 

The company said in a written statement and in a statement to Congress that the data was sold through third party vendors that did not have access to Facebook's systems. 

DataXu and Axiom Research have been put on notice by the government, which stated they will get an audit of their client lists and assurances that they do not sell any information that could compromise India's national security. 

Facebook has further been put on notice regarding its ability to use [DATA XU]'s services going forward, unless it can guarantee it will not be used for political advertising anymore. 

To read the full article go to: http://www.foxnews.com/tech/2018/02/10/india-says-facebook-used-its-data-targeting-ads.html 

If we take a look at The Indian Express article, you can see that Facebook was getting [DATA XU] data from a company called Axiom Research (AR), which then provided the data to Facebook via "third party vendors". The third parties could not have access to Facebook's systems and therefore the data being passed on was not in real time. 

The first part about the government checking for a breach of national security makes sense, since as far as I know India does have some sort of rule against using technology to gain intelligence. 

The second part about Facebook being put on notice is interesting. This seems to indicate that the Indian government may have put fines in place if the company did not comply with the requests from them.

If we look at this from a marketing perspective, an interesting question arises: Is it ethical for companies to acquire consumer data from other companies for their own purposes? Another question would be if it is allowed for Facebook to acquire consumer data from its partners in order to use them in targeting.

I find it difficult to say that acquiring data from other companies is unethical, but I can see how a case could be made for companies acquiring consumer data without the knowledge of the individual receiving the ad.

The question about the legality of acquiring data, again will depend on how it was acquired and what kind of protections were in place regarding privacy.

Most of these questions are difficult to answer due to the fact that privacy laws differ all over the world, and what happens in one country may not have any effect on what happens in another country. These laws are also often very vague and open to interpretation, which means that depending on your POV you can make any interpretation fit your narrative.

The company has been put on notice, however, the article did not state how long this notice period would be for. 

This is important since it means that the next story about Facebook acquiring consumer data from a partner may not get as much attention as the previous one did. 

The fact that Facebook is now on notice and understands that it needs to change its practices in order to avoid getting fined again, puts them in a position where they are likely to change their practices. One way they can change their practices, is by making sure the people who provide them with consumer data have some kind of privacy policy in place that lays out what exactly they are providing and how they will protect consumers' privacy.

One [DATA XU] customer, a company called Resolve Media, has been slapped with a $2 million fine for selling voter registration data. This is the second time that the Indian government has fined [DATA XU], which means the government still holds a grudge against them and is willing to impose fines on them if they violate any laws again.

As far as I know, there are no current laws in India regarding privacy or data collection. If there were, digital marketers should follow them so they don't get fined by the government.

In 1992, then-President of the United States Bill Clinton called upon the National Telecommunications and Information Administration (NTIA) to lead federal agencies in developing a national policy for electronic commerce. The result was In 1995, the NTIA issued its report, "A National Telecommunications Policy for the Information Age" (also known as "The Green Book"). Most of the principles and recommendations in The Green Book remain relevant today, especially in regards to government privacy protection.

Here are some of these principles:

In 2004, then-President George W. Bush signed into law the Online Communications Privacy Act (H.R. 3140). The law requires telecommunications carriers and other providers of electronic communications service to protect the privacy of customer information. Communications providers that knowingly disclose customer information in a manner that is inconsistent with the Act's protections can be fined up to $10,000 per violation. The Federal Trade Commission (FTC) has issued guidelines on how companies should collect and safeguard sensitive consumer data.

The FTC has issued guidance on consumer privacy, available at http://www.ftc.gov/privacy/privacy-basics/guidance-on-consumer-privacy-in-the-digital-age/.

 

The FTC has also set forth clear principles for protecting Internet users' privacy when using online services, available at http://www.

Conclusion

The proliferation of technology has led to a new way of life for Americans. Social media, for example, has changed the role that consumers play in marketing. Before the rise of social media, customers were passive. They sat back and watched advertising campaigns unfold on television and billboards. They read ads in magazines and newspapers. And they listened to ads on the radio.

Today, social media gives customers the ability to take a more active role in marketing campaigns by sharing information about their preferences via Facebook posts and Twitter tweets. The key to success is to shape one’s marketing strategy around this shift—and approach it with a delicate touch that respects user privacy while promoting brand loyalty at the same time.