Washington Might Crack Down On Mobile Bidstream Data
November 4, 2020
Mobile devices siphon data from users and sell the data to third parties, mostly ad companies, to make a profit. The bidstream is mobile’s dirty secret that everyone knows about and the federal government might finally do something to protect consumers’ privacy says The Drum: “Mobile’s Dirty Little Data Secret Under Washington’s Microscope.”
“Bidstream” is the mobile industry jargon used for data mobile services collect from users then sell. The data is sold to advertisers who bid on ad space in real time exchange for targeted ads. Bidstream data could include demographics, personal hobbies and (even more alarmingly) real time coordinates for consumers’ current location.
The Interactive Advertising Bureau’s (IAB) executive vice president Dave Grimaldi stated that his organization has recently communicated a hundred times more with the federal government about the bidstream than the past two months. There are politicians worried that the bidstream could not only violated privacy, but could lead to deceptive business tactics (and maybe violent actions). There are currently no industry standards or rules from the IAB or the Mobile Marketing Association against bidstreams.
In June 2020, Mobilewalla released demographic information about BLM protestors under the guise of data analysis, while politicians called in surveillance. They want to know if Mobilewalla’s analysis along with the midstream violate the FTC act:
“The FTC won’t say whether it is probing bidstream data gathering, but its chairman did respond to lawmakers. ‘In order to fully address the concerns mentioned in your letter,’ wrote FTC Chairman Joseph Simons in a letter to Wyden obtained by The Drum, ‘we need a new federal privacy law, enforceable by the FTC, that gives us authority to seek civil penalties for first-time violations and jurisdiction over non-profits and common carriers.’… In questions sent separately to Mobilewalla, Senator Elizabeth Warren (D-MA) and other legislators asked the company to provide details of its “disturbing” use of bidstream data.‘Mobilewalla has and will respond to any request received from Congress or the FTC,’ a Mobilewalla spokesperson tells The Drum, declining to provide further detail.”
Those mobile phones are handy dandy gizmos, aren’t they?
Whitney Grace, November 4, 2020
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