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Facebook made of Teflon when it comes to privacy, analysts say

Sharon Gaudin | Jan. 6, 2014
Social network sued for allegedly scanning users' private messages

Rob Enderle, an analyst with the Enderle Group, said users should be aware that free services aren't really free. If people aren't paying out of their pocket, they'll pay another way.

"Ad-funded companies need to generate revenue, and they do so by mining the content they have access to," Enderle said. "In exchange, you get access to the product for free. Once you know this is going on, you can either decide not to use the service or to moderate what you share with them. This hurts because most folks don't really understand what they signed up for and feel violated as a result. Sometimes you do need to read the fine print."

Consumers need to remember that with services like Facebook, the real customers are the advertisers, not the users, he said.

Enderle, like Kagan, said users aren't going to leave Facebook for this kind of infraction. They haven't in the past and it's unclear what privacy infraction would force users, who connect with family and friends on the world's largest social network, to ditch it for another site.

 

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