Facebook changes meet privacy laws: watchdog

Facebook's changes in response to an investigation last year meet the expectations of Canadian privacy law, the federal privacy commissioner says, but there is still room for improvement.

Last year's investigation by the Office of the Privacy Commissioner of Canada resulted in "many significant changes," said Commissioner Jennifer Stoddart in a statement Wednesday.

In particular, the probe raised concerns about the way users' private information was being shared with third-party developers who create games, quizzes and other applications on the social networking site.

"Facebook has since rolled out a permissions model that is a vast improvement," Stoddart said.

As of last June, applications must inform users what kind of personal information they require in order to run and must ask for consent to use that data. In addition, by default, applications can only access the public parts of a user's profile unless they have been given explicit permission from the user to access private sections of the account.

Stoddart said the commission is also pleased that Facebook has developed "simplified privacy settings" and now allows users to choose different privacy levels for each photo or comment they post. That feature was launched in December.

However, she cautioned that the office is satisfied only with the changes made in response to the 2009 investigation, and "there is still room for improvement in some areas."

In particular, the office:

  • Has asked Facebook to keep improving its oversight of application developers and to better educate them about their privacy responsibilities.
  • Warned Facebook against expanding the categories of user information made available to everyone on the Internet and which users cannot control through privacy settings.
  • Recommended that Facebook make its default privacy settings for photo albums more restrictive.

In addition, the office launched a new investigation in January in response to a complaint about Facebook's invitation feature and its "like" buttons on other websites.

Stoddart's comments outlined the findings of a review of changes made by Facebook following a complaint made against the social networking site in 2008.

In July 2009, after an investigation, the privacy commissioner's office announced that Facebook continued to breach Canada's Personal Information Protection and Electronic Documents Act in four areas. A month later, it announced it would give Facebook one year to comply with privacy laws.

Stoddart thanked the Ottawa-based Canadian Internet Policy and Public Interest Clinic for bringing the original concerns forward and Facebook for its co-operation.

She reiterated, however, that Facebook users also need to take responsibility.

"The investigation has led to more privacy information and improved privacy tools," she said. "Facebook users should take advantage of those changes."

Original Article appeared on cbc.ca September 22, 2010

Paid Celebrity Endorsements On Facebook: They're He-e-r-r-re

Will celebrities like Heidi Montag be able to move the sales needle when they make transparently commercial posts for a company on their Facebook pages? Evidently, Ad.ly has already convinced a handful of big brands that people such as Montag - with a large number of Facebook "likers" - will do just that.

The Beverley Hills, CA-based advertising platform announced Wednesday that it offers marketers the opportunity to pitch products through so-called influencers on the social site. The company began offering the same service on Twitter one year ago and on MySpace in June.

"Basically, the advertisers want more reach," said Sean Rad, president of Ad.ly. "No brand has done all three [social sites simultaneously] yet. But, we have some very, very large brands that are going to launch with all three very soon…We actually have signed deals. We cannot name them. Though, they are some of the very largest brands in the world."

One small retail brand, PetFlow, has leveraged Ad.ly's automated platform via Montag's Facebook page. The reality TV star's account posted the following message on Wednesday: "Just found Petflow.com, they deliver pet food right to my door for free! No more lugging heavy bags! And the same copy appeared on Montag's Twitter page. The "Ad" copy seen at the end of Montag's message is required by the Federal Trade Commission for the sake of transparency, said Krista Thomas, VP of marketing for Ad.ly.

Indeed, her company's platform lets celebrities, athletes, or other popular personalities place ads into their social activity streams. In addition to Montag, she said, participants include skateboarding legend Tony Hawk, reality TV star Kim Kardashian, NBA basketball player Paul Pierce, comedic talk show host Stephen Colbert, and TV personality Dr. Drew Pinsky, among others.

Thomas said celebrities get compensated for the commercial posts/tweets on a pay-per-message model. More specifically, she said that payments are based on an equation that includes: their number of followers/fans/friends on a social site; how often they tweet or post, and engagement achieved (number of replies, re-tweets, click-throughs, etc.). And the company's platform - called "Influencer Network" - charges brands on a CPM model, Thomas said.

She said some of those celebrities have recently authored promotional tweets on Twitter and posts on MySpace on behalf of brands like Toyota, CNN, Sony, NBC, Microsoft, and Universal. A Toyota "Swagger Wagon" campaign effort, she said, helped garner 2.7 million YouTube views.

Meanwhile, Rad said Facebook has signed off on the endorsement posts appearing on official brand pages. "It is within Facebook's guidelines," he said. "A fan page has the permission for a fee to promote a brand…but a user page does not."

Endorsements for major brands will begin appearing on Facebook within the next three or four weeks, Thomas said. "It's very similar to the [traditional] endorsement marketplace, but at a micro-level, obviously," she said. "So it's much more affordable to a far larger group of marketers. We have proven out that model in the past year on Twitter, and the company is growing quickly. We have a price point that marketers can afford, up and down the full range."


Original article by Christopher Heine  (Clickz)


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