Unregulated Data Brokers Using The Data They Over-Collect To Run Ads Opposing The Regulation Of Data Brokers

Privacy

from the this-is-why-we-can't-have-nice-things dept

We’ve noted a few times that there are two major reasons that the U.S. still hasn’t passed even a basic privacy law for the internet era or regulated data brokers. One, the government is corrupt, and has repeatedly buckled to the lobbying of multiple industries that find the current dysfunction very profitable. Two, the government loves the current lax system because it allows them to dodge warrants.

But with scandals only feeding annoyance at the legislative failure, the push is only growing for some kind of basic protections. Not surprisingly, states have filled the vacuum, often poorly. Most notably California, which has already introduced several confusing and problematic bills.

Now California is eyeing SB 362, known as the Delete Act, would require companies to delete all data on individuals upon request — including data purchased or acquired from third parties. Not too surprisingly ad firms and data brokers don’t much like this, so they’ve started using the data they’ve over-collected to run targeted ad campaigns aimed at Californians in a bid to create opposition to the law.

Many of the ads direct consumers to websites like NO to SB 362, which insists that SB 362 would “destroy California’s data driven economy” and a parade of other hyperbolic horribles:

“That loss of accurate data in the market would hamper marketing efforts for California businesses, reduce competition, hurt non-profits, curtail quality research, and create new advantages for giant companies that have built closed data systems. California families would also see an immediate and costly impact in higher prices, less choice, closed businesses, more digital fraud, and fewer ad-funded services.”

To hear the companies (in this case IPG, Acxiom and Colclasure) tell it, they’re just looking to help out as “subject matter experts” meaningfully invested in a federal privacy bill:

“We are offering our view as subject matter experts to trade organizations and legislative bodies on why this proposal will damage the economy, negatively impacting both small and large businesses, and have asked our industry partners to join the dialogue,” he said. “We will continue our work to help create common sense rules at a federal level.”

But the reason we don’t have a federal privacy bill (outside of federal incompetence and corruption) is because companies like this routinely oppose any federal bill with any actual teeth. These companies’ prefer legislation that’s little more than hollow simulacrum, written by their lawyers with an eye on effectively legalizing all of their very worst habits.

Any real federal privacy legislation would empower consumers and cost companies like this billions of dollars. They’re simply not meaningfully interested in serious privacy reform, but get to posture as if they are. So the cycle continues, another dozen privacy scandals come and go in the headlines, these companies make immense profits, and nothing meaningfully changes.

Filed Under: california, data brokers, privacy, sb 362, security, targeted ads