The case from the first reading of Target trying to predict which female customers were pregnant is an interesting one, and brings about many questions of ethicality. In order to make this prediction of whether or not a shopper was pregnant, the shopping habits of known pregnant women were studied. After finding out what exactly these habits were, if a female shopper’s shopping habits changed to fit these new habits, Target would classify that shopper as pregnant. These “pregnant” women would then be put on a special mailing list, where Target would send them coupons and offers for merchandise specifically for expecting mothers. This would then cause the pregnant customers to use the coupons and offers to buy the products from Target, and increase Target’s sales.
The ethical questions brought up by this case encompass some of the bigger controversies surrounding targeted advertisement. On one hand, targeted advertisement saves companies money, by limiting and focussing their advertising resources. Also, as a customer, wouldn’t you want to receive advertisements and special offers for the products you actually want to buy? This is the reason that Nickelodeon has commercials for kid’s toys, MTV has commercials for acne medication, and ESPN has commercials for viagra. The upside of targeted advertisement is to focus resources and save time and money for both companies and customers.
On the other hand, many customers might see targeted advertising as an invasion of privacy. A pregnancy, for certain women, may want to be kept a secret (as it was for the teenage girl in the article). If Target predicts a woman is pregnant, and then puts her name on some list in a database, that data could be classified as very sensitive. What type of security measures should now be taken to protect that data? Should new, government-mandated measures be put on this type of data? What if Target starts trying to predict which customers are having an affair? Which customers have a heart condition? Which customers are gay? These potentially harmful pseudo-facts about customers would be stored somewhere, and a breach of this kind of data could be damaging to customers who never consented to this kind of personal information being collected and stored.
With that being said, I think targeted advertising is only ethical if the customer agrees that he/she wants to receive advertisement that is targeted, and therefore also agrees to having their shopping habits monitored and stored to do so. Otherwise, the customer is basically being spied on without consent, even if it benefits their shopping experience. No customer wants to find out that a company has them on a “pregnant” or “divorced” or even “gay” list in some database, with the risk of that information being breached. With this happening, customers are unknowingly putting their trust in that company’s security measures, and I don’t think that is right. You should be able to choose which confidential information you trust to a company like Target, like a credit card number or SSN. The ethicality of keeping a customer’s personal data all revolves around what that customer agrees to.