privacy

Charter Communications, the fourth-largest cable system in the United States, has started telling its high-speed Internet customers that it is going to keep track of every site they visit on the Web.

The cable company will sell the data to a firm called NebuAd, which in turn will use it to show ads to Web-surfing Charter customers that are meant to be related to their interests. (Visit a knitting site yesterday and see yarn ads today.)

Charter started sending letters out to several hundred thousand customers in four markets: Fort Worth, Tex.; San Luis Obispo, Calif.; Oxford, Mass.; and Newtown, Conn. (The letters were first reported by DSLreports.com.)

Charter said it will start testing the system within 30 days and will make a decision whether to introduce it to its 2.8 million Internet customers a few months after that.

Using data from Internet service providers for what the advertising people call behavioral targeting raises all kinds of questions about privacy, disclosure and who owns the information about where Internet users surf.

“All we are doing is, in an anonymous format, providing additional context to serve those ads. To the extent those ads are more meaningful to me as Ted Schremp, I will have a better Internet experience than the generic ads that are part of Yahoo and everything online.”

For those customers who disagree, Mr. Schremp said that Charter was offering the ability for them to choose not to be part of the system. I suggested that most privacy experts prefer opt-in systems where information isn’t collected until the user explicitly grants permission. He said that opt-out has become the norm for all targeting on the Internet.

How much money is NebuAd paying Charter for access to information about its customers’ surfing behavior? Mr. Schremp wouldn’t say. (Robert Dykes, NebuAd’s chief executive, said last month that the company was willing to pay Internet providers several dollars per subscriber a month.)

Mr. Schremp did acknowledge that raising revenue was a main goal for Charter in this: “We want to leverage technology in a way that makes sense for our economic model.”

Source: http://bits.blogs.nytimes.com