Sunday, December 30, 2007

Don’t Go Towards the Light – Facebook and Beacon

Recently it has been hard to keep on top of the unfolding problems at Facebook. For those who are unaware of what Facebook is, it is a social networking site popular amongst college students. Of course, this didn’t send them into the netherworld or online privacy issues. No their problems started with their privacy policy. Most importantly what it didn’t say. What it didn’t say is that facebook employees might just be browsing your online activity (that Facebook tracks) for their own entertainment. Now that might some issues but that at least the caveat emptor of privacy policies. In an age where people narrowly tailor their privacy policies, it then falls to the user to think of all the things that a company could do with their information and decide if they want their information used that way before accepting the terms of the service (and many companies change their privacy policy at will and without notice). This is an interesting bent on contracts and informed consent. The contract is being modified at any time and without notice (note: most sites do this, not just Facebook). Furthermore, this is a one sided contract modification (much like the strategy credit card companies use). There is no negotiation and there is probably a serious question as to whether both sides are agreeing on the contract with the new policy (I know of more than one company that get’s people to agree to changes in the employee handbook before they get to see it!). Although concerning, this probably pales in comparison to the recent brouhaha over their Beacon software.

Beacon is Facebook’s advertising platform. Facebook tracks its user’s actions on the web (and off their site). It then posted this information for all to see on their page. This meant, if you had a friend that wanted a new GPS for xmas and you went to buy it for them online, they might see that you just made the purchase on your page (whoops, surprise gone). Worse yet, what if you wanted a GPS and so did someone else and they told you they weren’t buying gifts this year, or were doing something else but you could see they bought one for someone else). This policy was Opt out so it was on be default. When news of this broke, Facebook turned off this feature; sort of. Turns out, they didn’t turn it off at all, they just turned of the reporting part of it. So they were still tracking you, you just couldn’t see they were doing it so visibly. Finally Facebook let users completely opt-out of the system.

Opt-out has become the mantra of the marketing industry (assuming tacit acceptance of their practices). There is an interesting debate about this in the tech. community about if it is better to use Technology to stop such things (NoScript and AdBlocker can be used to block Beacon completely (for the moment) if you have FireFox while others say that policy should be implemented to stop such actions. Finally there are those who feel that consumer pressure will drive this (I got an email from one Social networking site saying how they would never implement such a system (of course there is some bitter irony there since they sent me that email without my permission though a spam posting on another social networking site). Which solution will work best (policy, technology or market pressure) is an interesting debate; each with its own merits. What is clear, is that what is in place now is not working.

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