60 Minutes Broadcast Portrays Web Data Collection Issues

A 60 Minutes segment broadcast on Sunday, Nov. 28, cast the Internet data collection industry in an ill light while downplaying responsible practices by marketers. The segment, which was partly researched at the most recent Direct Marketing Association in Toronto, was hosted by correspondent Leslie Stahl.

With the exception of close-up shots of DMA and Truste logos, much of the footage the 60 Minutes crew shot on the next-to-last day of the conference went unused. (The crew, along with producer Rome Hartman and associate producer Elizabeth S. Weinreb, was followed by a DIRECT reporter during a trip through the exhibit hall.)

“Overall I think the producers stuck to the story that they presented to us, that the focus was going to be on online data collection and online data profiling, and that is exactly the parameters of what was broadcast,” said DMA spokesman Chet Dalzell.

“We would like to have seen a better look at how self-regulation takes place and the effectiveness of market forces on extending consumer privacy protection.”

The piece featured commentary from Jason Catlett, head of electronic privacy firm Junkbusters, who was identified as “an Internet entrepreneur.” Catlett introduced the concept of “cookies” – data tags that allow site operators to track visitors and position banner ads.

“You don’t create it; you don’t even know it is being created,” commented Stahl.

At the Toronto DMA, the 60 Minutes staff said their piece would acknowledge within the segment that their site, CBS.com, used cookies. But when the piece actually aired, Stahl postulated this as a hypothetical situation: “If I go onto CBS.com on the computer, and you go on to CBS.com, are you saying that we will see different ads?”

Stahl also injected her own thoughts into interviews, such as with online watchdog organization Truste chairman Lori Fena. Describing the process of data combination, Fena noted that “a very complete set of profiles, everything from your grocery shopping to what kind of news you read -“

” — and your health condition, and some of your thought processes, and all your tastes — ” interjected Stahl, in a cutaway.

” — are all compiled on one network,” finished Fena.

Truste’s seal, Stahl pointed out, “does not mean that that company is not sharing or selling the information to someone else. All it really does is tell consumers that an Internet site has a privacy policy. And how to find it.

“The Internet companies that underwrite her program are not going to be happy to hear this, but Lori Fena is ready to admit that self-regulation like Truste just isn’t enough.”

This is a shade more dramatic than what Fena actually said, which was “we don’t have systems in place beyond the voluntary systems, so what happens for all the companies that don’t choose to volunteer, to give notice, consent, access and redress? There is no safety net there.”

The segment also featured Michael J. Saylor, CEO of MicroStrategy, a data-mining firm. “In time these Internet data collectors will realize they are just like banks,” said Saylor.

“A bank only exists because its depositors, the people with the money with the data they trust the bank. But if they bank violates the trust of the depositors there’s going to be a run on the bank and its going to collapse.”

Stahl did note briefly that surrendering personal data can lead to increased convenience in online shopping, as well as services tailored specifically to the consumer, but it was a small slice of the piece. Too small, for the taste of Webstakes.com CEO and co-founder Steve Krein, who viewed a tape of the segment.

“It’s not about unsafe,” he said, following Stahl’s characterization of the cyber world as such. “Responsible companies are taking this issue very seriously. The goal here is to have a conversation with each consumer and to let them know what they can get [in exchange for their data].”

Krein would like to see 60 Minutes revisit the topic. “They should look at where it was a year ago and where it will be six months from now. If they don’t do an update of [the privacy issue] they are doing consumers a disservice.”