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Privacy Groups Want Feds to Investigate Targeted Ads

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A trio of privacy groups want federal regulators to take a close look at ad networks that track web surfers' and sell targeted ads.

The groups want the Federal Trade Commission to open an inquiry into whether these networks, including Google and Yahoo, are unfairly tracking Americans and profiting from their data.

The World Privacy Forum, the Center for Digital Democracy and U.S. PIRG (public interest research groups) argue that online marketers are secretly combining online data with offline data and using that to run real-time ad auctions.

“Consumers will be most shocked to learn that companies are instantaneously combining the details of their online lives with information from previously unconnected offline databases without their knowledge, let alone consent," said U.S. PIRG Consumer Program Director Ed Mierzwinski. “In just the last few years, a growing and barely regulated network of sellers and marketers has gained massive information advantages over consumers."

Companies named in the complaint (.pdf) include Google, Yahoo, PubMatic, TARGUSinfo, MediaMath, eXelate, Rubicon Project, AppNexus and Rocket Fuel.

At issue is a growing market of targeted, real-time ads, where advertisers can choose to show ads to people based on their age, gender, income and location -- as well as their recent online behavior -- often on unrelated sites that let third parties track users (for instance, Wired.com uses DoubleClick to serve ads and it tracks users across the web using cookies.)

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