In the year 2023, as technology continues to advance exponentially, the integration of this technology into our work, recreation, and home lives has raised significant concerns among experts in the field of data privacy. From cookies that discreetly track and report our online activity to the harvesting and utilization of personal data for targeted advertising, protecting the private information of yourself and your business has never been more critical. Indeed, being asked to accept cookies on websites or enable apps to track data on your smartphone has become a near-daily occurrence—one that you have likely already experienced today.
In this blog post, we will explain the importance of safeguarding personal data and the laws that govern data privacy. Exploring the dangerous implications of data breaches and the potential harm of targeted advertising, we shed light on the urgency of addressing these issues. By gaining an understanding of applicable law and adopting protective measures, you can empower yourself and your business to stay vigilant and guarded in an increasingly interconnected world.
Cookies and Personal Data:
To understand the significance of data privacy, it’s essential to understand the role of cookies in tracking our online behaviors. Cookies are small pieces of data stored on our devices, recording information about our browsing activities, and providing valuable insights to companies and advertisers. The information gathered can vary widely, from basic personal information like your name and demographics, to more intricate data like your shopping habits, geographical location, and banking information.
These cookies are used not only to track our data while we browse the site on which we enabled them but allow that site to track our activity on other websites as well. This is why when you download a new application on your smartphone, you often get a pop-up asking whether you’d like to “ask this app not to track your data on other applications.” Think about when you are reading a news article online and there is the option at the end to like the news site on Facebook and follow them. Without cookies, this interaction would not be possible, or would at least be far less convenient, because Facebook needs to track what you do on other sites in order for that data to be reflected when you go back to Facebook. While this data can be used ethically to enhance user experiences, there is also the risk of it being exploited by companies with nefarious motivations or cyber-criminals for personal gain. Therefore, safeguarding your private data from unauthorized usage is essential to protecting sensitive information and maintaining trust with your customers and/or stakeholders.
Targeted Ads and Harmful Consequences:
In today’s internet-driven economy, targeted ads have become the primary source of revenue for many businesses. By using demographic data and browsing history, companies can instantly auction ad space to those seeking to reach specific audiences. While targeted ads may seem innocuous, they can have harmful effects by promoting discriminatory practices and reinforcing socio-economic inequalities. Moreover, targeted ads can create echo chambers, driving division and polarizing society by presenting individuals with only information that aligns with their existing beliefs. This practice hampers open discourse and inhibits the exchange of diverse perspectives.
The modern economy is largely internet-driven, and targeted ads have become the primary source of revenue for many online businesses. By harvesting users’ demographic data, browsing history, and more using tools like cookies, companies can instantly and automatically auction ad space to those seeking to reach specific audiences. When you load a website that uses targeted advertising, within a fraction of a second, thousands of advertisers are automatically bidding on the ad space that you are about to see. Whichever of these bidders places the highest value on advertising to someone like you (based on the wealth of information that the host site has provided them) will win the bid and be the ad that you see. However, this means that every one of those thousands of bidders gets at least temporary access to that wealth of personal data about you.
Even knowing this, targeted advertising can seem innocuous. After all, what should I care if some advertiser knows that I live in Laredo? However, there are two main ways that targeted ads can be harmful:
Ads can play on our personal vulnerabilities, or they can withhold opportunities from us that we never knew existed. Because we don’t know what other users are seeing, our ability to look out for other vulnerable people is also limited. In physical space, if someone posts an advertisement, in a city bus for example, that is discriminatory or offensive in some way, the community can quickly rally and get the ad removed. But if that ad were only shown digitally to people who the advertiser knew (based on data harvested with cookies) would be receptive to its message, it would be much harder for society as a whole to identify and condemn, and that is what is happening every day in people’s personal internet bubbles.
Applicable Laws:
To protect individuals from data misuse, several laws have been implemented to regulate data privacy practices. The Privacy Act of 1974 governs how federal agencies collect and use personal data, emphasizing consent and limited exceptions for disclosure. The Privacy Act prohibits the disclosure of a record about an individual from a system of records absent the written consent of the individual, unless the disclosure is pursuant to one of twelve statutory exceptions. Other significant legislation includes the Health Insurance Portability and Accountability Act (HIPAA), the Gramm-Leach-Bliley Act (GLBA), and the Children’s Online Privacy Protection Act (COPPA). Additionally, the California Consumer Privacy Act (CCPA) and the California Privacy Rights Act (CPRA) are the most comprehensive data privacy laws currently in effect in the United States, offering residents stringent data protection rights to consumers.
Illustrative Story:
Real-world examples demonstrate the potential consequences of data breaches and targeted advertising. In 2018, T-Mobile experienced a significant hack, leading to the leak of personal information from at least 40 million people. The most concerning part about this hack, however, is that a significant portion of people whose data leaked had never even had a T-Mobile account before. After this breach, many of these individuals were able to successfully sue T-Mobile for this mishandling of their personal data.
Another notorious case involved Cambridge Analytica, which exploited data from millions of Facebook profiles to influence the outcome of the 2016 U.S. presidential election. By tailoring messages to specific groups, the campaign created political echo chambers and amplified divisions within society.
In a society so fueled by interconnectedness and technology, safeguarding your data privacy is of utmost importance. Understanding the implications of cookies and targeted ads, as well as being aware of the relevant data privacy laws, empowers you to take control of your personal information. By being proactive and vigilant, you can protect yourself from data breaches, identity theft, and the harmful effects of manipulated information. Staying informed and advocating for responsible data practices will contribute to a safer and more secure online environment for everyone
