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eBay, Yahoo! Close Auctions of Personal Info

Yahoo! and eBay have decided to prevent the auction of mailing lists on their sites in order to protect the privacy of their users. One company that sells lists, Market Logistics Group, claims it's bringing "value to the economy." When it comes to targeted marketing, companies must walk a fine line between building a trustworthy brand, and violating their customers' trust.

By Nico Detourn
August 8, 2000

eBay (Nasdaq: EBAY) and Yahoo! (Nasdaq: YHOO) closed down auctions for mailing lists last week because of concerns that personal information about people on the list would be disclosed. Direct marketing company Market Logistics Group solicited bids on eBay and Yahoo! Auctions for lists that included names, addresses, and phone numbers of 200,000 U.S. investors and others looking for investment information. Neither eBay nor Yahoo! allow the sale of bulk e-mail lists.

eBay pulled the Market Logistics auction twice last week for violations of its terms of use. When placed the first time, the auction involved an offer to purchase additional lists directly through the company, bypassing eBay's marketplace and cutting the company out of the transaction. After the auction was relisted with the direct purchase invitation removed, it was pulled because of privacy concerns. Yahoo! pulled the same auction for similar reasons.

Respect and consent
Citing the universal distaste for spam, a Yahoo! Auctions brand manager said, "We're not going to abuse the trust of our users, and we're not going to let others do that either." Feeling the other end of the gavel, the president of Market Logistics believes he is being unfairly made out to be the villain, saying, "We're bringing value to the economy and the individual by allowing for targeted marketing."

The two statements highlight one of the conflicts in the sticky and increasingly prominent issue of Internet privacy. Companies need to balance consumer trust and good will with the ability to track, profile, and target their customers.

When the targeting of ads and content is done well and with respect for the user -- and after receiving the user's fully informed consent -- it can help deliver a richer user experience. This can work to the mutual benefit of the customer and company, with each becoming more valuable to the other. It's when companies fail to show respect for and gain the consent of their customers that they not only risk losing their customers' respect, but being bypassed altogether in a medium where the competition is just a click away.

Your Turn:
How concerned are you about your online privacy? How much privacy are you willing to give up for a more customized user experience? Take the poll and then share your thoughts on the eBay discussion board.

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