Answer to Question 1
Websites install tracking tools on the computers of people who visit their sites. These tools not only collect data on all the websites someone visits, but they also record keystrokes to keep track of whatever information the consumer has entered online. These tools are placed on computers without notice or warning to the consumer. In a process called data mining, these websites utilize the information they collect to find out information about those customers. Data mining leads to behavioral marketing, also known as behavioral targeting. Behavioral marketing is a widespread practice that involves inferring needs and preferences from a consumer's online behavior and then targeting related advertisements to them. The most troubling aspect of massive information collection is that consumers are often unaware of who has access to what personal information, how it is being used, and with what consequences.
Answer to Question 2
There are four core principles of the FIPS. They are:
Notice/Awareness. Notice should be given before any personal information is collected.
Choice/Consent. People should be able to control the use and destination of their information.
Access/Participation. People should have the ability to view, correct, or amend any personally identifiable record about them.
Integrity/Security. Information collectors must take reasonable precautions to ensure that the data they collect are accurate and secure.
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