What’s the Buzz about Google’s New Privacy Policy?

If you are a Gmail user you’ve seen Google’s new privacy policy…but what’s all the Buzz about? Remember the Google Buzz social networking service? Oh, you don’t? Well, that’s because it didn’t last very long and while it was around, there were charges that it violated privacy laws by exposing Gmail users’ personal information. The resulting settlement put Google on notice that it had to build privacy protection into its products and it could not misrepresent how it handles users’ information. So, last month, Google began alerting users that beginning March 1 it will share data it collects from users across its dozens of services. Google says that only users who are logged into Google will be affected. Google already shared what it knew about its users across most of its services but now it will also include YouTube and Google search history. Google says its new privacy policy does not violate the settlement it reached with the FTC.

However, a consumer watchdog has escalated its efforts to block Google from rolling out the new privacy policy that would allow the Internet search giant to harvest more information about its users. But the Electronic Privacy Information Center (EPIC) is not suing Google. Instead, it filed a federal lawsuit Wednesday against the Federal Trade Commission, the agency charged with protecting consumers’ privacy on the Web. The watchdog group is asking a federal judge to issue a temporary restraining order and preliminary injunction to compel federal regulators to enforce a settlement they reached with Google last year and protect consumers who will be “left without recourse if the commission fails to enforce its order.”

Google says its new privacy policy will improve Google services and make Google’s privacy policies easier for consumers to understand. A Google spokesman said it does not share users’ personal information outside of Google, just with its own services such as Gmail and Google Maps.

The consumer group charges that Google is hoping to boost its online advertising business, which generated nearly $40 billion in revenue last year. Google will now be able to target ads to people based on the videos they watch on YouTube or their previous Google searches. With rising competition from Facebook, which is on the verge of an initial public offering (IPO) that could bring $10 billion and a valuation that tops $100 billion, Google is looking to increase revenue from ads more closely tailored to its users. Facebook took the lead in U.S. online display ads from Yahoo last year with a 16.3% share of the market, according to research firm EMarketer. Google, the dominant search engine, came in third with 9.3% of the market.

Debby Winters

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