Profiling the mobile customer – Is industry self-regulation adequate to protect consumer privacy when behavioural advertisers target mobile phones? – Part II

Abstract

Mobile customers are increasingly being tracked and profiled by behavioural advertisers to enhance delivery of personalized advertising. This type of profiling relies on automated processes that mine databases containing personally-identifying or anonymous consumer data, and it raises a host of significant concerns about privacy and data protection. This second article in a two part series on “Profiling the Mobile Customer” explores how to best protect consumers’ privacy and personal data through available mechanisms that include industry self-regulation, privacy-enhancing technologies and legislative reform. 1 1 See the first article in this series on Profiling the Mobile Customer: King, N.J. and Pernille Wegener Jessen, ‘Profiling the mobile customer – Privacy concerns when behavioural advertisers target mobile phones,’ Part I, [2010] 26 CLSR 454–477. It discusses how well privacy and personal data concerns related to consumer profiling are addressed by two leading industry self-regulatory codes from the UK and the U.S. that aim to establish fair information practices for behavioural advertising by their member companies. It also discusses the current limitations of using technology to protect consumers from privacy abuses related to profiling. Concluding that industry self-regulation and available privacy-enhancing technologies will not be adequate to close important privacy gaps related to consumer profiling without legislative reform, it offers suggestions for EU and U.S. regulators about how to do this. 2 2 The article is related to the research project Legal Aspects of Mobile Commerce and Pervasive Computing: Privacy, Marketing, Contracting and Liability Issues funded by the Danish Council for Independent Research; Social Sciences. See further information on the project, at: http://www.asb.dk/article.aspx?pid=19387.