Facebook recently had to pull their Beacon advertising program for a while due to inadequate privacy features. They started the service off as having to opt- out on a case by case basis instead of giving the option of a complete opt-out. However, information from companies was still being sent to Facebook in batches and then they claim to be deleting any information that is not a Facebook member or those who have opted out of the service. Customers are outraged and the company has been feeling the heat. Zuckerman apologized for their actions on December 5th among advertiser drops such as Coca-cola, overstock.com, and Travelocity. A full list of advertisers that were scheduled to user the service can be found on a post by dcoates.
As a society, we are becoming more open with our information and we love having the ability to easily share the information to the group of friends we WANT to know. However, when people start to feel that they are out of control and that their information is being used for the wrong purposes or without their permission, they are becoming more frugal and not so community focused. As seen in the above case, people start to protest which leads to uncertainty of more risk adverse partners. Reduced revenue follows as these partners decide to wait out the beginning upheavel. Travelocity, Coca-cola, and Overstock.com are major accounts and don’t want that kind of bad publicity. Any company hoping to expand and give their customers more collaborative online features should make sure to check the security of the data being stored or transfered.
