Everyday, millions of people around the world log on to the Internet to work, to shop, to be entertained, and to connect with others. Unfortunately, only a small percentage know that while they are web surfing, their web habits are being monitored, analyzed, and sold without their consent to companies across the globe. The result is personalized web advertising so precise that two individuals looking at the same website from two different computers will see two different things.

A recent article for the New York Times highlighted why companies absolutely love this kind of marketing, while consumer advocacy groups absolute hate it.

From the article:

For decades, data companies like Experian and Acxiom have compiled reams of information on every American: Acxiom estimates it has 1,500 pieces of data on every American, based on information from warranty cards, bridal and birth registries, magazine subscriptions, public records and even dog registrations with the American Kennel Club.

Patrick Williams, the publisher of the personal finance magazine Worth, recently asked Acxiom to find the names and addresses of 10,000 Americans from each of 11 cities who had houses worth more than $1 million, net worth of over $2 million, lived within a few miles of other rich people and subscribed to business publications.

“They are the scariest data research company around — they know far too much,” said Mr. Williams, who said he was very happy with the amount of information it gave him.

[...]

Paul M. Schwartz, a law professor and privacy expert at the law school of the University of California, Berkeley, said the unwitting participation by consumers makes online marketing different from offline.“Interactive media really gets into this creepy Orwellian thing, where it’s a record of our thoughts on the way to decision-making,” he said. “We’re like the data-input clerks now for the industry.”

In response to criticism from Congress, a consoritum of advertising industry trade groups, sponsored by Google, Microsoft, Yahoo, Disney and Verizon, have recently tightened self-regulatory measures for web tracking. While this is a good step forward for protecting consumers, there is still a long way to go.

Here at Reputation.com, we take great pride in helping individuals protect their privacy online. To this end, we will continue to be at the forefront of Internet privacy and Reputation Management issues. Make sure to check back to the Reputation.com Blog, or to follow us on Twitter, for more important news updates.