Your Private Information on the Internet: How Firms Collect Your Private Data Online

Collecting data is particularly easy on the internet- HTTP protocol allows servers to set and read cookies. Cookies are unique identifiers that store information about a transaction. They stay on a consumers' computer after they navigate away from a page, so that the next time they access the server using the same account, the company can retrieve the identification that gives them details of their past purchases. The cookie file is first placed on the internet by the retailer and then transferred to the customer hard drive when the customer goes to the site and accepts cookies. The consumer database then tracks the consumers movements and purchases on the internet and stores it on their server.

Spyware is similar in concept to the cookie- you download a free program and a file is placed on your hard drive. This file is connected to your email address, so firms may track your purchase habits and your webpage views and send you spam emails for items you shop for. Spyware also allows firms to gather credit card information, transmit confidential files, change your browser homepage, display annoying popups, install new toolbars, display advertising on your desktop, and cause your computer to be slow.

One such program that contains cookies and "spy-ware" (although they claim they do not) is Webshots, a popular download that allows a user to organize their photos on their computer and display them to the world on their own personal photo webpage. When downloading the software to use these features, there is a small link at the bottom entitled, "privacy policy". When clicking on this link, the policy clearly states they will be collecting personal information, including your credit card information!