Will the "do no track" system really work?

Currently the Federal Trade Commission is trying to come up with a solution to protect our right to privacy, but will it be effective? I believe that the FTC's mechanism will fail. Two major reasons stick out to me: 1) the terms are vague to implement 2) the online advertising industry will take a major hit.

The proposed mechanism allows the user to stop advertising companies from tracking their web browsing activities.The system gives the user the option to keep some data from being collected, however the guidelines which the FTC proposed do not clearly layout the proper guidelines that these advertising companies should follow when handling the personal information that we voluntarily hand over. The FTC defended their system, saying that it will have a similar impact as the national do-not-call registry, but many believe that the two cannot be compared. One of the major reasons is that although everyone has a distinct telephone number, computers are constantly changing ip addresses. Another problem is that companies such as Amazon and Facebook, which have different methods of collecting data, are not included in the proposal.

On top of that, the industry that will be effected will find away around it. Online advertising is an industry that brings in $12.1 billion in revenue, and companies all around are currently scrambling to find a way to make sure that this number doesn't fall. According to the Interactive Advertising Bureau, this system will put an estimated $300 billion of U.S. economic activity, which these advertising companies help promote, at risk.

The proposal will go under a two month evaluation, in which they will receive recommendations so that the FTC can improve the already created platform. Hopefully the FTC will realize that they need to come up with a better policy.

Groupon was Smart for Not Taking Google's Deal

According to the Chicago Tribune, Groupon decided to turn down Google's $5 billion offer. Although some people think it was a bad decision to turn down a $5 billion check, I agree with Groupon's decision of not selling out. And to owner Eric Lefkosky, holding out and going public with a start up is nothing new. He has already made a lot of money by taking two companies public rather than selling. In his eyes the company is worth more than $5 billion, and he has good reason for believing so.

One of the biggest advantages that the company has is its name itself. With the increasing popularity of "groupons," the company does not have to spend any money in improving its name recognition. This type of coupon has been named after the company, which gives them an edge over its competition. They already serve in 52 markets, while its main competitor only has 14. And although its easy for others to mimic there business model, several companies have had little to no success in taking market share from Groupon.

With that said, Groupon is still taking a great risk in not accepting the deal. The company could do a lot with the resources that Google has, and could accelerate its maturity process which could help them take out the competition. According to the Wall Street Journal, "Some financial analysts favored the deal, even at $6 billion, because it would allow Google to get a slice of a fast-growing market, and that Google could market the coupon product to its more than one million advertisers. It will be interesting to see how Groupon will turn out when it decides to go public.