ROBERT SIEGEL, HOST:
We share something about ourselves most of the time we go online. It might be our names or addresses. Or it could be something less obvious, like our location, income or favorite stores. On this week's All Tech Considered, what happens to that data.
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SIEGEL: An entire industry collects and sells online data. As NPR's Brian Naylor reports, these data brokers have few regulations to follow.
BRIAN NAYLOR, BYLINE: Data brokers have been around for a long time, collecting information about your magazine and newspaper subscriptions. They know whether you prefer dogs or cats. From public records, they can tell if you drive a Ford or a Subaru, or if you've declared bankruptcy. But the internet upped the ante considerably. Think of all that personal data you share on Facebook or your online shopping. Yeah, I think I'll get those shoes. Julie Brill recently stepped down from the Federal Trade Commission.
JULIE BRILL: It's what web pages we visit, where we're shopping, who we're interfacing with on social media. All of that information is available to be collected by entities that park themselves on the various websites.
NAYLOR: Once they've collected it, the data brokers package and sell that information - sometimes to other brokers, sometimes to businesses that use it to target ads to consumers. And it's a lucrative industry. One of the largest brokers, Acxiom, reported over $800 million in revenues last year. Two years ago, the FTC studied data brokers. One thing it found was that brokers take the information they've gleaned about consumers and use it to put us into categories. Some of the categories are innocuous - pet owner, or winter sports enthusiast. But Brill says others were more problematic.
BRILL: Single mom struggling in a - in an urban setting or people who did not speak English and felt more comfortable speaking in Spanish or people who were gamblers. And so the concern is, you know, not only the fact that these profiles are being created, but how are they being used?
NAYLOR: Say, for instance, I go online and do a web search for heart disease or diabetes.
BRILL: That information, depending upon the website, can go to ad networks, can go to analytics companies, which then will put that information into a profile about you - if it's a data broker - saying you have an interest in heart condition issues or diabetes issues. That becomes a part of your profile. And others see that and can market to you based on that information.
NAYLOR: And there's little to stop data brokers from using the information they've gathered from us in whatever way they please, says Jeff Chester, a privacy advocate and director of the Center for Digital Democracy.
JEFF CHESTER: Because there are no privacy - online privacy laws in the United States, there's no stop sign. There's no go slow sign. There's no, you know, crossing guard. The message is anything goes.
NAYLOR: Like Chester, former FTC Commissioner Brill says legislation is needed to make the industry more transparent. She says there should be a website where consumers could see what data has been collected about them and correct it or block it from being used. Some individual companies, like Acxiom, do this. And the industry does have voluntary guidelines to limit how information is used. Xenia Boone is the vice president for corporate and social responsibility at the Direct Marketing Association, which represents many data brokers.
XENIA BOONE: There are not dossiers not being created about consumers. What's going on are - marketing companies and fundraising organizations are working with data companies in order to get the right information about potential prospects because they need to go out there. They need the data in order to reach someone.
NAYLOR: The DMA has a website called aboutads.info where consumers can opt out of having some ads sent to their browsers. Consumers can also block individual ads by clicking on that little triangle in the upper right-hand corner of many of them. You can also install an ad blocker and clear the cookies from your browser. But blocking ads is one thing. Keeping your information away from the data brokers in the first place is much harder to do. Brian Naylor, NPR News, Washington.
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