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Can FaceBook and Twitter Affect Your Credit Score and Insurance?

Submitted by gma on Sat, 02/04/2012 - 07:52

Facebook and Google are big names in the online privacy debate, but maybe the real threat is from unseen data brokers behind the scenes. In observance of Data Privacy Day, here are some things to know and consider in conducting your online life.

Did you know January 28 is Data Privacy Day in the United States, Canada, and the European Union? The intention behind Data Privacy Day is to raise awareness of the importance of protecting the privacy of personal information—not just amongst individual users of things like social networking, but also amongst businesses, organizations, and corporations that collect, retain, and access information about their clients, customers, and users. Companies like Facebook, Google, Microsoft, and Yahoo have been drawing the attention of privacy advocates and regulators in recent years, but the reality is that there are tens of thousands of companies out there collecting, processing, and distributing personal information about individuals all the time. Increasingly, those companies are looking to things like social networking for cues about individuals’ behaviors, lifestyle, interests, and activities.

Facebook CEO Mark Zuckerberg — Time’s 2010 Man of the Year — once famously declared privacy is not a “social norm,” and Facebook and other companies have consistently borne out that idea in the online world, collecting increasing amount of information about individuals and hiding behind privacy policies longer than the U.S. Constitution. Clauses of implied consent decree that users legally agree to having their information gathered and tracked, so long as they continue using accounts or services. In other words: Users can either agree to be tracked, or they can agree not to use a service. However, this cavalier approach to data collection and user profiling is drawing increased scrutiny not just from consumer and privacy advocates, but by governments and everyday people. The European Commission has just proposed new data protection laws that would enshrine a “right to be forgotten” for individuals, and the U.S. Federal Trade Commission has forced Facebook to toe the line on sharing user information with third parties. Google’s recent ground-up revamp of its privacy policies and user tracking is almost certain to draw FTC scrutiny as well.

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