The document discusses the ethical implications of using personal data for targeted marketing, highlighting privacy concerns and the psychological effects of information overload on consumers. It argues that targeted ads can violate privacy rights and erode trust, leading to negative impacts on brand perception and consumer engagement. Furthermore, the paper emphasizes the need for ethical data practices and transparency to protect consumer autonomy and address social inequalities perpetuated by biased marketing algorithms.

1. Companies should use
personal data to target
markets - Against
Fahim Hussain 17075177
Yasmin Adrianna Cheok 23072507
Jelyn Tey Jie Rui 23049208
Aalyaa Anwar 19024777
GROUP 6

2. Content
Loss of Privacy:
A Fundamental Right
Data Overload &
Manipulation
Constant
Surveillance
Data Breaches and
Security Risks

3. Data or Information overload occurs
when the amount of information
exceeds the working memory of the
person receiving it. (Arnold et al., 2023)
By constantly pushing information to
consumers, companies are able to
influence consumer behaviour thus
leading to Manipulation.
Cognitive Load Theory (CLT)
• This theory explains how we process
information and highlights how too much
information (TMI) can negatively affect
our decision making.
• Divided into three categories of
cognitive load namely:
- Intrinsic load
- Extraneous load
- Germane load
Weller, 2022
Data Overload & Manipulation

4. Constant Ads and Cognitive Overload
• Constant ads lead to ‘Banner
Blindness’ and ‘extraneous load’.
• Extensive data collection leads to
‘Cognitive overload’ and reduce
‘Germane Load’ for consumers.
• Repetitive targeted marketing from
companies could negatively affect their
brand image making ads less effective.
(Nikoleychuk, 2023)

5. Focus on Value, not Manipulation
• Provide Value through ‘clear and concise
communication’ and ‘respecting consumers'
privacy’.
• Companies exploit emotions to increase ‘Intrinsic load’
which results in impulse buying.
• Using responsible marketing to gain customer loyalty
and increase ‘Germane Load’.

6. Privacy is a fundamental human right
and essential for freedom of thought and
expression
Personal data is an extension of
ourselves in the digital world
When companies collect and use our
data without our knowledge or consent,
it's an intrusion on our privacy
Loss of Privacy: A Fundamental Right

7. Lack of Informed Consent
Morey et al, 2015
Users are unaware of the extent
to which their personal data is
being collected and utilized by
companies for targeted marketing.
Lack of informed consent and
control over their personal
information and potential
consequences of its use.
Khan, 2019

8. Targeted ads that
incorporate personal data
are an invasion of privacy
Personalized ads &
marketing are unethical
63%
Mckeon, 2019
83%
Koetsier, 2019​
• Targeted marketing
requires disclosure of
personal data from
users' web activity &
digital footprint
• Crosses the boundary
into personal space,
leading to discomfort
among consumers
Users become more
uncomfortable as the degree
of personalization increased.
Plane et al, 2017
Violation of Privacy Rights

9. Data collection
can lead to a
pervasive sense
of being
constantly
monitored.
This feeling of
surveillance
can be
stressful
& anxiety-
inducing.
It can stifle
creativity & open
communication.
Constant Surveillance

10. Erosion of Trust
Deloitte, 2024
Companies that misuse
data erode consumer trust.
Consumers may become
cynical of marketing
messages & less likely to
engage with brands.
Building trust with consumers
requires transparency, respect
for privacy & ethical data
practices.

11. Ethical Considerations
Consumers have a right to
privacy & autonomy over
their personal information.
Consumers should be fully
informed about how their
personal data is collected,
stored, & used.
Targeted marketing based on
personal data has the
potential to perpetuate
social inequalities
& reinforce existing biases. Filed in the U.S. District Court, 2022

12. • A data breach is any
security incident in which
unauthorized parties gain
access to sensitive or
confidential information.
• Data breaches include only
those security breaches in
which data confidentiality
is compromised.
Data Breaches and Security Risks
•71% of data breaches involved customer data,
sensitive information leaks, or unauthorized
access to admin panels.
•The remaining 29% of breaches compromised
other data types.
HALIMY, 2023

13. Risk of Data Breaches
The impact on
reputational damage
Impacts on attracting customers,
investments, and employees.
The Disruptive Effect of
Operational Downtime
Business operations are
significantly disrupted
Toll on financial loss
The impact of sensitive
data loss
Exposes personal information and
lead to identity theft.
Cyber attacks
Companies that collect data are
potential targets for cyberattacks.
Legal implications and
actions
Data laws demand protection;
breaches invite legal actions for
compensation.
Wheatley, Maillart, & Didier Sornette, 2015
Customer compensation,
response, investigation, legal.

14. Reinforcement of Social Inequalities
• Targeted advertising algorithms
reinforce biases.
• Reliance on historical data perpetuates
discrimination.
• Marketing content may exclude certain
demographic groups.
• Exacerbates existing social disparities.

15. References
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Arnold, M., Goldschmitt, M., & Rigotti, T. (2023). Dealing with information overload: A comprehensive review. Frontiers in Psychology, 14.
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Arbanas, Jana , et al. “Data Privacy and Security Worries Are on the Rise, While Trust Is Down.” Deloitte Insights, 2024,
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Hendrix, Justin. “Facebook Settles Lawsuit Stemming from HUD Discrimination Complaint | TechPolicy.Press.” Tech Policy Press, 21 June 2022,
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Morey, T., Forbath, T., & Schoop, A. (2015, May). Customer Data: Designing for Transparency and Trust. Harvard Business
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17. Thank you!