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Summary:

[qi:090] Two consumer organizations have filed an amended complaint to the Federal Trade Commission seeking around mobile advertising. The Center for Digital Democracy and The U.S. Public Interest Research Group filed their joint complaint with the FTC today. The 52-page complaint amends a 2006 filing from […]

[qi:090] Two consumer organizations have filed an amended complaint to the Federal Trade Commission seeking around mobile advertising. The Center for Digital Democracy and The U.S. Public Interest Research Group filed their joint complaint with the FTC today. The 52-page complaint amends a 2006 filing from the two that asked the FTC to look at the behavior tracking and targeted advertising done by the online web industry — something to which Congress has recently started to pay attention.

From the complaint:

“The mobile industry has already developed extensive plans and techniques to help determine what it calls the “user journey” through the “mobile Internet.”[3] Many mobile marketers are eager to exploit what they correctly perceive as a unique opportunity to target consumers by taking advantage of our highly personal relationships with these extremely pervasive devices to provoke an immediate consumer response.”

The complaint focuses on practices such as offering services or loyalty programs and coupons in exchange for an advertising relationship, as well as the amount of knowledge the carriers have on subscribers that can be shared with other vendors — possibly without a customer understanding what they are giving up. The issue is made more compelling by people’s willingness to carry their mobile phones with them everywhere, and by the information, including location, that mobile phones can offer advertisers. Advertisers love this device, and the complaint alleges that consumers aren’t aware of what, exactly, they’ve agree to.

As wireless broadband becomes more common and devices that access the web grow in use, restraint on the part of advertisers and consumer education around mobile advertising will need to follow. If we’re destined for one web –and I believe we are — then we need a set of rules that will apply both to wireless and wired settings.

Google, Yahoo, and carriers such as AT&T and Verizon — not to mention a host of startups and VC firms– are betting big on mobile advertising. I find Ringleader Digital’s mobile tracking technology a bit disturbing, but there are plenty of players banking on user ignorance, including ChaCha, Velti and AdMob — all of which mentioned in the complaint.

For more on the intersection of broadband and privacy check out our previous coverage that relates to web firms, cable firms and mobile operators:

Newsflash: Congress Discovers that Web Firms Track Data

Akamai Joins The Targeted Advertising Rush

BlueKai Gets $10.5M to Improve Ads

Privacy: Your Cable Box Knows You So Well

Canoe Ventures Wants Your Data

Carriers Demand More Data, Consumers Get Less Privacy

  1. [...] Stacey at GigaOM has pointed out that the next privacy battlefield is going to be the mobile phone.  She rightly indicates that marketing firms are already jockeying to mine the information that is gleaned from all of us who surf the web regularly on our mobile phones.  This becomes particularly concerning when you realize that the carriers have all of this information about our web habits that can be sold to the highest bidder. [...]

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  2. [...] New FCC Chairman marketwatch.com Telecom Experts: Separate USF and Broadband Stimulus yahoo.com Privacy s Next Battleground Will Be Your Phone gigaom.com US lawmaker wants health warnings on video games theregister.co.uk Motorola Intros [...]

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  3. The answer is simple – allow the customer to control their own privacy. We’ve been doing it for years. Our solution allows the customer to control his/her mobile privacy across multiple mobile platforms and still integrate into any web service.

    Cheers,

    Peter

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  4. [...] Privacy’s Next Battleground Will Be Your Phone [...]

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  5. [...] on user ignorance, including ChaCha, Velti and AdMob — all of which mentioned in the complaint. http://gigaom.com/2009/01/13/privacys-next-battleground-will-be-your-phone/ [...]

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  6. [...] New FCC Chairman marketwatch.com Telecom Experts: Separate USF and Broadband Stimulus yahoo.com Privacy s Next Battleground Will Be Your Phone gigaom.com US lawmaker wants health warnings on video games theregister.co.uk Motorola Intros [...]

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  7. I agree to Peter. You have to give the costumerat least the opportunity to manage his privacy settings. I am pretty sure, that there are enough who participate and the companies know that these people are really interested.

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  8. [...] Archives Select Month January 2009 December 2008 November 2008 October 2008 quickly January 15, 2009, 2:30 pm Filed under: Mobile Communication & Digital Media | Tags: advertising, mobile, privacy Privacy’s Next Battleground Will Be Your Phone [...]

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  9. Interesting post. I’ve been surprised at how many participate in social networking–at the possible/likely expense of privacy. Read the privacy policies of most social networking applications and you’ll find that you’re signing away this important privilege. I brought this up at a meeting this morning and most people just shrugged their shoulders because there haven’t been negative consequences–yet. On the other hand, people also believed that housing prices would continue to go up and that the stock market was relatively safe…When will we ever learn…It was refreshing to read your post and see that others are concerned.

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  10. [...] enough for impatient mobile users. It would be an obvious benefit for people who travel, but it also poses some privacy problems. It’s more akin to firms that look at recommendations to offer ads such as Phorm or NebuAd, [...]

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