If consumers don’t completely get it, the government hasn’t a clue. The Federal Trade Commission decided it would be a good idea to make businesses provide an “opt-out” mechanism for the commercial collection of personal information online. It should come as no surprise that the approved self-regulation plan was submitted by the Network Advertising Initiative, a consortium of Internet advertising companies.
Cookies can only communicate between your computer and the website on which the cookie originated. Advertising networks like DoubleClick are able to aggregate user information because their cookies originate on most any large-company website that carries advertising. When I point my browser at WebMD.com to research end-stage renal disease, DoubleClick sets a cookie on my computer (assuming I’m dumb enough to configure my browser to accept cookies). Then, a day later, when I point my browser at my insurance company who also carries ads from the DoubleClick network, DoubleClick is able to put together that someone researching end-stage renal disease is insured by the insurance company. Further, DoubleClick would be able to identify me if any of the websites to which I have provided personal information also participate in the DoubleClick network. Think about that for a minute. Then ponder the ramifications of DoubleClick’s Abacus Alliance program, in which the company intends to merge its personally identifiable online data with its enormous offline database that contains records on some 80 million U.S. households. According to DoubleClick’s privacy policy, the merged database will contain an alarming level of personal information detail including each user’s “name, address, retail, catalog and online purchase histories, and demographic data.”