We’ve long been dismayed by how powerful and secretive the massive data broker corporations have become. Our data is collected, often surreptitiously, then repackaged and sold to other corporations, and we don’t get a percentage of the profits, nor any real notice that this is happening.
Good news, maybe, from Washington, as reported by Kate Kaye of AdAge:
Today the Senate Commerce Committee held a long-awaited hearing about the consumer-data-broker industry.
“We have a feeling people are getting scammed or screwed,” said Senator Jay Rockefeller, D-W.V., whose office sent inquiries to several data brokers in the past year. He called out data giants Acxiom, Epsilon and Experian, threatening to use more forceful ways of getting them to divulge information about how they do business and with whom.
One concern shared by Mr. Rockefeller and privacy advocates is predatory marketing activity conducted by financial firms or other companies targeting vulnerable groups such as the impoverished or immigrant populations. Another concern is the practice of scoring individuals determined by algorithmic data analysis and serving them with tailored offers. In some cases that could involve higher interest rates for loans or dynamic prices for products based on prior web behavior or demographic data.
“To date they have not given me complete answers,” said Mr. Rockefeller of Acxiom, Epsilon and Experian. “I’m putting these three companies on notice today…that I am considering further steps and I have steps I can use to get this information.”
Mr. Rockefeller sent letters to data companies such as Acxiom, Datalogix, Epsilon, Experian and Transunion in June, then broadened the inquiry to include media firms — typically big collectors of behavioral web data — like About.com, Babycenter.com, Cafemom.com, Time’s Health.com and Conde Nast’s Self.com.
(click here to continue reading Rockefeller to Marketing Data Giants: You’re On Notice | Privacy and Regulation – Advertising Age.)
Bares paying attention to…