Question

In: Finance

There is a web advertising company that collects users' data every time they click on a...

There is a web advertising company that collects users' data every time they click on a website, post a message on a social app, send an e-mail, or do any online searching. This data is then sold to companies so that they can use it to send customized advertisements to potential customers.

The exercise equipment company you work for is given access to this data, and you are asked to create association rules to identify future customers who are likely to buy the company's new exercise product.

After performing association rules analysis, you discover certain patterns that are very accurate in predicting the likelihood that a customer will buy the new exercise equipment. This discovery is likely to make your company a lot of money and also make you an analysis superstar at your company. At the same time, you realize the web advertising company has been collecting its data using inappropriate, albeit not illegal, means. Even though most consumers realize their online activities are tracked without their express permission, do you consider this ethical? Does the fact that the product the exercise company wants to sell is one that can benefit the customer? Justify your opinions with specific business examples.

Solutions

Expert Solution

Although it is a widely acknowledged fact consumers low-key are aware of the fact that their online activities are being tracked and yet continue to engage in those activities, this does not legitimize the data collection without the express consent of the consumers.Even though your product that you wish to advertise is beneficial to the consumer, you are culpable in breach of privacy and of being privy to something you had no right to in the first place. Not only is this unethical but in case this entire arrangement catches the authority's or the public's attention, you and your employer can get into deep trouble.

In recent times, tech giants have been in the news for breach of consumer privacy. Although their patrons knew of possible data privacy breaches, they continue to patronize these businesses. But the various governmental and inter-governmental bodies are prepping to prosecute these companies for their transgressions.


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