DoubleClick & Internet Privacy

Agenda

DoubleClick

Business Model

Abacus Online

Privacy Concerns

The Government

The EU Initiative

Suggestions

DoubleClick

Founded in 1996 by Kevin O’Conner

Provides internet advertising services

Merged with Abacus Direct in 1999 for $1.7 bn

Network includes 1500 websites & places ads on 11000 sites

Network also includes AltaVista & Travelocity

By 2000, DoubleClick had expanded its business vastly

Business Model

Linkage between advertising agencies and customers

Tracked click stream data with the help of cookies

ID number assigned to a cookie deposited on the user’s computer by banner ads

DoubleClick tracked the web activities of the user; the user’s identity remained anonymous

Abacus Online

Abacus Direct is a data collection agency, working with catalog companies

It tracked the offline buying behavior of the consumers along with their personal info

Abacus online formed by DoubleClick to coalesce the clickstream data & abacus direct’s database

This would reveal the user’s identity, hence causing privacy breach

Privacy Concerns

Abacus Online was a tool that hampered the user anonymity

The users were unaware of the info being collected & its usage

Users unaware of the opt-out option

No internet privacy rights existed

Protecting Privacy

TRUSTe, BBBOnline & SecureAssure approved websites

Blocking cookies by configuring IE or Netscape

Use of P3P technology

The Government

CDT filed a case with FTC against DoubleClick for privacy breach

FTC voted for Congress to be the authority for regulating internet privacy

Thus, making it necessary for websites to provide privacy policies & info to users on how their data will be used

The EU Initiative

The EU initiated the Privacy Directive which prohibited the data processing without the user’s consent

Right to inspect personal data maintained & correct errors, if any

Reasonable balance between users’ rights & business interests of data controllers

Protected EU citizens from processors of information in other countries

Disadvantages of EU Directive

Use of cookies or other devices for click-stream data was not specified

Whether companies could internally transfer personnel info from EU to their offices in other countries

Suggestions

Policies to be made rigid

Users to be informed about their data being tracked

Policies & practices to be certified under TRUSTe, BBBOnline or SecureAssure

It should be more transparent in terms of communication with its consumers

Thank You