Norway’s privacy watchdog, Forbrukerrådet, is taking the lead in sparking a debate on the issue.
Norwegian Regulator Calls for Regulation of the Internet
Forbrukerrådet says technology companies are collecting privacy-sensitive information about internet users. This includes what we like and buy over the internet, as well as data on mental and physical health, sexual and political preferences, and geographical location. This data is used to provide targeted advertisements. This ‘online commercial surveillance’ opens the door to manipulation, fraud, discrimination, and privacy breaches. In her speech, Forbrukerrådet refers to a report by the Norwegian Consumers’ Association (NCC). The study by the advocacy group shows that the current advertising model has all kinds of negative excesses. This allows companies to formulate their message in such a way that consumers are more susceptible to it (i.e. manipulation). Online surveillance also carries security risks: the large amounts of personal data invite hackers to steal this data for identity fraud, phishing, spamming, and other fraudulent activities. The researchers also considered threats such as discrimination, disinformation, distortion of competition, and privacy infringement.
Alternative Advertising Models are Better for Consumer Privacy
“Collecting and combining information about us not only violates our right to privacy but also makes us vulnerable to manipulation, discrimination, and fraud. This harms individuals and society as a whole,” said Finn Myrstad, director of Forbrukerrådet. He argues that most do not want to be spied on while online and receive advertisements based on tracking and profiling. It is therefore important, he says, for European and American policymakers to come up with ways to better regulate the Internet. Myrstad points out that there are alternative digital advertising models that don’t rely on online surveillance, and where publishers and advertisers give more control where their ads are shown. “It is possible to sell advertising space without basing it on intimate details about consumers. There are already solutions in place to show ads in relevant contexts, or where consumers themselves indicate which ads they want to see,” the chief executive said. The advantage of these alternative models is that they offer more transparency about how the digital advertising world works. According to Myrstad, this gives advertisers more money, because they have to share less with mediators.
Dozens of Organizations Call for the Elimination of “Commercial Surveillance Systems”
“While we recognize that advertising is an important source of revenue for content creators and online publishers, this does not justify the massive commercial surveillance systems put in place in attempts to ‘show the right ad to the right people’,” the Norwegian regulator writes in an open letter to European and U.S. policymakers. The letter was co-signed by some 80 consumer organizations, civil rights groups, and academics who are concerned about the commercial surveillance system that feeds the online advertising market.
