program areas Digital Consumer
Promoting Financial Inclusion and Consumer Protection in the “Big Data” Financial EraDramatic changes are transforming the U.S. financial marketplace. Far-reaching capabilities of “Big-Data” processing that gather, analyze, predict, and make instantaneous decisions about an individual; technological innovation spurring new and competitive financial products; the rapid adoption of the mobile phone as the principal online device; and advances in e-commerce and marketing that change the way we shop and buy, are creating a new landscape that holds both potential promise and risks for economically vulnerable Americans. Using advances in data analytics specifically to promote economic inclusion and fairness during this period of transformation in the U.S. economy should be a proactive strategy embraced by all stakeholders. While not a panacea to address growing financial inequality, a wise investment in strategies that harvest the potential of the new digital financial system may better enable struggling Americans to maneuver a difficult economic future. This work is licensed under a Creative Commons Attribution 4.0 International License (link is external)
excerpt via Exchangewire (link is external): Privacy awareness body Truste has today (28 January) released its annual Consumer Confidence Index, revealing 60% of participants in the survey were more concerned about their online privacy compared to 12 months ago, with 89% actively “avoiding” companies they don’t believe protect their privacy adequately....However, it seems that contagion has spread to the private sector too, as there are three times as many survey participants concerned about companies sharing their personal information with other companies (60%), than governments’ monitoring activity (20%)....Ken Parnham, Truste managing director, Europe, commenting that the online advertising sector can only suffer over such widespread negative public sentiment.He says: “After a barrage of media headlines about government surveillance programmes such as NSA’s PRISM, it is perhaps unsurprising that consumer online trust has fallen to its lowest point yet, with only 55% of internet users prepared to trust companies with personal data online.“It is a wake-up call for businesses that commercial data collection and sharing, rather than government activity, is the main driver of increased online privacy concerns.”In fact the use of personal data for the purposes of targeting online advertising ranked as the second-biggest concern among the survey participants, with 54% of respondents reporting it as a major concern, while 19% were concerned about companies tracking their location on a smartphone.
NewsToday, the United States Trade Representatives convenes two days of hearings (see attached agenda) to help it formulate a negotiating policy for the forthcoming EU/U.S. trade pact--known as the Transatalantic Trade and Investment Partnership (TTIP). CDD is one of the consumer groups that has been asked to brief its Policy Staff Committee.A number of U.S. industry groups, including the "Digital Trade Coalition" (Sidley & Austin) and the Coaltion for Privacy & Free Trade (Hogan Lovells)--in what illustrates how healthy fiction writing is at some law firms--paint a picture of a robust system protecting privacy here (we've attached their comments to USTR as well because they are worth reviewing to illustrate what the online data lobby agenda is). These coalitions want the U.S. to seek a trade deal that would allow our ineffective privacy regime to be considered "interoperable" with the EU's human rights and civil liberties robust approach. As we will explain later today, the U.S. is just at the very beginning in its efforts to protect consumer privacy in the digital era--hampered by many of the very forces these business coalitions represent. A number of U.S. online data companies, for example, are even unwilling to support even a modest Do Not Track standard, or stronger rules to protect youth, let alone serious privacy legislation.Consumer and privacy groups which are also members of the Transatantlic Consumer Dialogue will also speak on the TTIP, including on its impact on health, food safety, IP and other issues.
We will present this Wed. at the WHO's Global Alcohol Policy conference. Our presentation is: The Digital Marketing of Alcoholic Beverages to Youth: How Social Media, Mobile Devices, Personalized Data Collection and Neuromarketing have transformed the global advertising landscape.Here's the abstract.Powerful new digital marketing techniques permit beer and alcohol companies to deeply penetrate into the hearts and minds of consumers, and their social networks of friends. The growing sophistication and capabilities of online marketing, increasingly integrated into the lifestyles of youthful and Internet connected consumers throughout the world, pose potential public health concerns—as well as opportunities. Marketing today has been transformed from the viewing of a single advert on television or in print, into experiencing interactive and highly personalized content that influences what we consume and purchase. Alcoholic beverage companies are winning global awards for their campaigns, including those launched in the Asia Pacific, EU, North and South America markets.Today, a single user can be stealthily tracked and profiled throughout their “online journey”—including their visits to many websites and they actions they take--as their information is collected and analyzed. Then so-called online “behavioral” advertising takes this profile data to target an individual user more precisely.. Mobile phone and location marketing permit marketers to “geo-target” users in specific geographic areas and at defined times. Digital advertising can operate across so-called multiple platforms—following a single consumer whether they are in front of the personal computer, using a mobile device, or even soon while watching television. Super-fast computers are able to identify a single individual who might be a suitable target for an online alcohol ad—and sell them in real-time to the highest bidder.Facebook and other social media enable marketers to go beyond the targeting of individuals to also influence and “activate” ones network of friends. The goal for much of social media marketing is to encourage consumers to do the marketing for the brand, through new forms of viral and other “peer-to-peer” endorsements. Millions of Facebook members are now regularly reached by alcoholic beverage companies.Online marketers are increasingly relying on the use of “neuromarketing” to create ads and other content expressly designed to penetrate the subconscious minds of users. Through the use of “immersive” online content, including entertainment, digital marketers are creating new forms of story-telling designed to increase brand loyalty and sales.