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Internet privacy: a contradiction in terms?

You’ve no doubt heard the statement by former Sun Microsystems CEO Scott McNealy, “You have no privacy anyway. Get over it.” His remark has launched many a lively debate.

At the Privacy Rights Clearinghouse, we often hear from individuals who are frustrated or even angered by such statements and the business practices they perpetuate. While it is challenging to take the many steps necessary to protect one’s privacy online – for a result that is far from ideal – we are not convinced it’s a lost cause. There is simply too much at stake.

Individuals are increasingly using the Internet as their primary information source, often seeking information on sensitive matters such as finances, health, personal relationships, divorce, sexuality, workplace difficulties and legal conflicts.

But few individuals realize the extent to which they are being tracked by companies that create rich profiles of their web-browsing activities. The 2010 Wall Street Journal series, “What They Know,” reported that the nation’s top 50 websites installed an average of 64 pieces of tracking technology onto each visitor’s computer. Tracking tools go beyond the cookies many of us routinely delete. Some companies deploy “Flash cookies” or other “supercookies” that are not only extremely difficult to delete but can also be used to reinstall cookies that a user has removed.

[Related: Privacy overreaction will slow progress ]

Such data-gathering and profiling activities are largely invisible, except that they can result in the real-time display of behaviorally targeted ads. You might ask, “What’s the harm in receiving ads based on my web-surfing history?” In a legislative primer presented to members of Congress by 10 organizations, including ours, several potentially harmful effects of behavioral tracking and targeting were identified: (1) targeting economically distressed individuals with payday loans and subprime mortgages; (2) sending ads for bogus cures to individuals with serious medical conditions; (3) engaging in discriminatory pricing in which some people are offered products or services at higher prices than others; and (4) targeting children who lack the judgment capacity of adults. Further, profiles compiled originally for the ad industry may be sold to non-advertising third parties such as insurance companies.

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