Google got in a heap of trouble last year when it launched its Buzz social-networking product, prepopulating it with personal information from users’ Gmail accounts without consent. The Federal Trade Commission has proposed a settlement that could become the new privacy standard for the Web.
According to a recent ComputerWorld article, the settlement “requires Google to get ‘express affirmative consent’ from its users for ‘any new or additional sharing’ of personal information with third parties if the new sharing is a change in Google's practices.” It also requires Google to implement a comprehensive privacy program and independent privacy audits for the next 20 years.
What the Google Settlement Could Mean for B2C E-Commerce
Consumer e-commerce sites share some customer information in order to create targeted, personalized experiences for their audiences. In many cases, this can be as benign as a ZIP code so advertisements display merchandise locally available to customers.
Since the proposed settlement includes any customer information -- not just personally identifiable -- functional changes in why an Internet company shares ZIP codes and other data points could potentially require a user’s permission.
According to FTC attorneys, the part of the settlement the FTC would like to extend to be an industry norm is the requirement for a comprehensive privacy policy.
If your e-commerce company has a strong, comprehensive privacy policy that outlines the ways in which your company uses and shares personal information, then additional customer opt-ins should not be a problem. Even if you change vendors, as long as the type of information you use and the reason you use it stays the same, you would not need to notify customers. What you wouldn’t be able to do is retroactively change your privacy policy without users’ knowledge.
Additionally, if you have a global audience -- or hope to one day -- EU data privacy laws require you to disclose what data you keep on your site visitors and how you use it. And you have to give consumers a chance to object to the use of their information. So buttoning up your privacy policy makes good business sense in our global economy.
So what do you think: Is being more transparent with users about how e-commerce sites use their information an industry norm that’s been a long time coming, or has Google’s missteps ruined it for the rest of us?
Related posts:
Copyright 2010, Official Blog of Blueport Commerce
According to a recent ComputerWorld article, the settlement “requires Google to get ‘express affirmative consent’ from its users for ‘any new or additional sharing’ of personal information with third parties if the new sharing is a change in Google's practices.” It also requires Google to implement a comprehensive privacy program and independent privacy audits for the next 20 years.
What the Google Settlement Could Mean for B2C E-Commerce
Consumer e-commerce sites share some customer information in order to create targeted, personalized experiences for their audiences. In many cases, this can be as benign as a ZIP code so advertisements display merchandise locally available to customers.
Since the proposed settlement includes any customer information -- not just personally identifiable -- functional changes in why an Internet company shares ZIP codes and other data points could potentially require a user’s permission.
According to FTC attorneys, the part of the settlement the FTC would like to extend to be an industry norm is the requirement for a comprehensive privacy policy.
If your e-commerce company has a strong, comprehensive privacy policy that outlines the ways in which your company uses and shares personal information, then additional customer opt-ins should not be a problem. Even if you change vendors, as long as the type of information you use and the reason you use it stays the same, you would not need to notify customers. What you wouldn’t be able to do is retroactively change your privacy policy without users’ knowledge.
Additionally, if you have a global audience -- or hope to one day -- EU data privacy laws require you to disclose what data you keep on your site visitors and how you use it. And you have to give consumers a chance to object to the use of their information. So buttoning up your privacy policy makes good business sense in our global economy.
So what do you think: Is being more transparent with users about how e-commerce sites use their information an industry norm that’s been a long time coming, or has Google’s missteps ruined it for the rest of us?
Related posts:
- J.C. Penny and Google: A Cautionary Tale of Ecommerce and SEO
- Understanding the Google-Groupon Rumors
- Google Shopping Goes Local
Copyright 2010, Official Blog of Blueport Commerce
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