Chapter 3: Introduction to Technological Aspects of Privacy
First-Party Data Collection and Data Brokers
First parties collect data via cookies, user-generated content (UGC), and account terms of use; in California and the EU they give notice before setting cookies. They may also append data from data brokers, whom the FTC has scrutinized.
Cookies are one way first parties collect data; in California and the EU, first parties provide notice before setting cookies. Consent to cookies is only consent to set the cookies - creating an account means agreeing to longer terms of use that can grant broader rights, such as tracking location or selling data. Social networks retain user-generated content (UGC) for granular targeting.
🔑 Cookie consent vs terms of use
Cookie consent covers only setting cookies; the broader collection and processing rights (e.g. selling data, tracking location) come from the terms of use a user accepts when joining a service.
First parties may also append data from data brokers - businesses that obtain, cleanse, and license data. The FTC and other regulators have scrutinized data brokers; studies put the annual data brokerage market above $250 billion.
Key terms - quick answers
What is “User-generated content (UGC)”?
Text, photos, or videos a user posts to a website, providing granular insight into interests and offline activities.
What is “Terms of use”?
The longer policy (also called terms of service or terms and conditions) a user agrees to when creating an account, often granting broader data-collection rights than cookie consent.
What is “Data brokers”?
Businesses that obtain data from one or more sources, process and cleanse it, and license it for use by first parties; scrutinized by the FTC over privacy concerns.