Mobile advertisers under fire for violating consumer privacy

As mobile phones become more prevalent and widespread, mobile phone advertisements are taking on a more integrated role in our daily lives. Too integrated, it seems, for some US consumer watchdog groups. The watchdogs at the Center for Digital Democracy and the U.S. Public Interest Research Group have filed a formal complaint with the US Federal Trade Commission (US FTC) that charges mobile advertisers with conducting “unfair and deceptive” mobile advertising campaigns.

At the heart of the issue lies the concern for US consumer privacy. Both the CDD and USPIRG allege that mobile advertisers like Google (NSDQ: GOOG), Nokia (NYSE: NOK), Yahoo!, AT&T (NYSE: T), and Verizon (NYSE: VZ) have been involved in behavioral targeting, location-based targeting, user tracking/mobile analytics, audience segmentation, and data mining practices that violate consumer privacy rights.

Online advertisers see gold in data mining software that can help determine users’ online behavior and habits. The practice of analyzing consumer behavior can give insight into the effectiveness of certain marketing strategies. Taking things a step further, advertisers in the mobile space can also track metrics related to a handset’s specific location and online preferences. And, therein lies the problem. Just how much data is too much data? When does marketing efficiency cross the line into privacy violation?

It’s now up to the US FTC to make the call.

[Via: MobileBurn]