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  • « Facebook Finally Relents After Unabated Criticism Over Privacy Invading Beacon Ads | Main | Yes, Facebook Is Watching You But You Can Pull Down the Shades »

    The Facebook Beacon Ads Debacle Grows Worse Despite Facebook’s Concessions

    By Privacy Maven | December 3, 2007

    In the aftermath of the revelation of Facebook’s extreme - and perhaps unprecedented - privacy violations in the proposed Beacon ads network that garners members’ unwitting participation in advertising products and services, Facebook has a difficult challenge. Not just Facebook members and privacy advocates, but even potential advertisers in Facebook’s Beacon ads are skittish.

    It only took a few weeks for Facebook to squander the good will of its users on a poorly planned advertising platform. Now Facebook has also reportedly blown it with a few key advertisers, including Overstock.com, Coca Cola and Travelocity.

    The situation is up in the air with Coca Cola and Travelocity, as some late minute updates to Betsy Schiffman’s original report indicate. TechCrunch’s Erick Schonfeld also notes advertisers’ reluctance.as well as the changes Facebook has said it will enact to address privacy concerns.

    The backlash against Facebook’s Beacon advertising program just gets worse every day. First, advertising partner Coca-Cola got cold feet over privacy issues. Now Overstock is bailing from the program, and Travelocity is having doubts. What’s more, all of this lack of confidence from the major advertising partners Facebook launched with is coming after it revised its policy to make Beacon opt-in instead of opt-out.

    Beacon is a social form of advertising that shares your purchases or other actions you take on an advertiser’s site with all your friends on Facebook through their News Feeds. What has privacy advocates up in arms, and advertisers skittish, about Beacon is the way it seems to be spying on you as you surf the Web and then, on top of that, reporting what you just did to everyone you know.

    […]

    According to one security engineer’s analysis, Beacon partners transmit data to Facebook in bulk about members who visit their site. This is true even for those who opt out of Beacon by clicking on “No Thanks” when asked if the data can be shared with Facebook. The data is sent anyway. Facebook clarifies that it does not do anything with this opted-out data, and in fact deletes it from its servers. But the deletion occurs on Facebook’s servers, not the advertisers’. [Update: It gets even worse. Beacon partners are sending data indiscriminately about every single visitor to their sites back to Facebook, whether or not those people are even Facebook members. This includes very detailed user behavior. Again, Facebook says it deletes most of this data. But what are the partner sites thinking? They might as well be giving Facebook access to their bank accounts.]

    Yes, debacle indeed. Facebook tries desperately to retool Beacon ads and in so doing, keeps garnering the much-needed scrutiny and skepticism. Can restraints and security measures that protect Facebook members’ privacy be enacted?

    Researchers are claiming Facebook’s Beacon online ad system is even more intrusive when it comes to privacy matters than protesters against the technology might have thought initially.

    On Friday, Stefan Berteau, a senior research engineer at Computer Associates’ Threat Research Group, published findings that reveal Beacon reports member activities on third-party partner sites even if Facebook users are not logged in, and even if members have declined to opt in to the Beacon program.

    “It can happen completely without their knowledge,” Berteau said in his report. “The bottom line is that Facebook is materially misrepresenting the privacy impact of their Beacon program, and presenting users with the appearance of control over their information when in fact they have almost none.”

    A detailed report and analysis is on the CA Security Advisor Research blog.

    Topics: Privacy and Marketing, Social Networking |

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