Do you know what your data did last night? Almost none of more than 27 million people who took the RealAge quiz realized that their personal health data was sold to drug companies, who in turned used that information for targeted e-mail marketing campaigns.
There's a basic consumer protection principle at work here, and it's the concept of "unfair and deceptive" trade practices.
RealAge's privacy policy doesn't mention anything about selling data to drug companies, but buried in its 2,400 words, it does say that "we will share your personal data with third parties to fulfill the services that you have asked us to provide to you." They maintain that when you join the website, you consent to receiving pharmaceutical company spam. But since that isn't spelled out, it's not really informed consent.
Cloud computing services like Google Docs, and social networking sites like RealAge and Facebook, bring with them significant privacy and security risks over and above traditional computing models. Unlike data on my own computer, which I can protect to whatever level I believe prudent, I have no control over any of theses sites, nor any real knowledge of how these companies protect my privacy and security.
This may be fine – the advantages might very well outweigh the risks – but users often can't weigh the trade-offs because these companies are going out of their way to hide the risks.
Automated summary from: The Wall Street Journal