Such practices, integral to many businesses, are largely invisible to the public. The FTC is divided on the issue and hasn't yet taken a position on the consumer protection questions that may be involved when companies aggregate personal information to assemble a detailed picture of their customers. The information, which is gleaned from public records and retail databases, can include demographic information such as income, size of family and lifestyle interests. They are looking to establish a relationship with a customer. Data Compilers Companies that assemble information from various sources, including public records, surveys, mailing lists and geographic and demographic records, and then use it to update customer records can offer businesses better targeting information .
Businesses can also assemble data through cooperative, data-sharing arrangements .
For instance, detailed consumer information lets apparel retailers market their products to consumers with more precision, he said. Restrictions could drive smaller companies out of business, he said. Privacy advocates concede that there are business benefits to sharing personal data among companies. Mass. Many privacy notices posted on retail Web sites fail to inform online shoppers that their personal data is being shared with companies that compile the information for profiling purposes, Culnan claimed. FTC Chairman Robert Pitofsky said the commission isn't preparing any policy or legislative recommendations on this issue.