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Lawmaker Warns: Meta Chatbots Could Influence Users by ‘Manipulative’ Advertising


Senator Ed Markey has urged Meta to postpone the launch of its new chatbots since they could lead to increased data collection and confuse young users by blurring the line between content and advertisements.

The warning letter was issued the same day Meta revealed their plans to incorporate chatbots powered by AI into their sponsored apps, i.e. WhatsApp, Messenger, and Instagram.

In the letter, Markey wrote to Meta CEO Mark Zuckerberg that, “These chatbots could create new privacy harms and exacerbate those already prevalent on your platforms, including invasive data collection, algorithmic discrimination, and manipulative advertisements[…]I strongly urge you to pause the release of any AI chatbots until Meta understands the effect that such products will have on young users.”

According to Markey, the algorithms have already “caused serious harms,” to customers, like “collecting and storing detailed personal information[…]facilitating housing discrimination against communities of color.”

He added that while chatbots can benefit people, they also possess certain risks. He further highlighted the risk of chatbots, noting the possibility that they could identify the difference between ads and content. 

“Young users may not realize that a chatbot’s response is actually advertising for a product or service[…]Generative AI also has the potential to adapt and target advertising to an 'audience of one,' making ads even more difficult for young users to identify,” states Markey.

Markey also noted that chatbots might also make social media platforms more “addictive” to the users (than they already are).

“By creating the appearance of chatting with a real person, chatbots may significantly expand users’ -- especially younger users’ – time on the platform, allowing the platform to collect more of their personal information and profit from advertising,” he wrote. “With chatbots threatening to supercharge these problematic practices, Big Tech companies, such as Meta, should abandon this 'move fast and break things' ethos and proceed with the utmost caution.”

The lawmaker is now asking Meta to respond to a series of questions in regards to their new chatbots, including the ones that might have an impact on users’ privacy and advertising.

Moreover, the questions include a detailed insight into the roles of chatbots when it comes to data collection and whether Meta will commit not to use any information gleaned from them to target advertisements for their young users. Markey inquired about the possibility of adverts being integrated into the chatbots and, if so, how Meta intends to prevent those ads from confusing children.

In their response, a Meta spokesperson has confirmed that the company has indeed received the said letter. 

Meta further notes in a blog post that it is working in collaboration with the government and other entities “to establish responsible guardrails,” and is training the chatbots with consideration to safety. For instance, Meta writes, the tools “will suggest local suicide and eating disorder organizations in response to certain queries, while making it clear that it cannot provide medical advice.”  

New York's Geofencing Ban: A Game Changer for Advertisers


The New Law on Geofencing

New York has recently passed a new provision in its state budget that prohibits advertisers from geofencing healthcare facilities. This law, which was passed in May, has made it increasingly difficult for advertisers who want to use location or healthcare data to maintain performance while still abiding by the law.

Under this new law, corporations are prohibited from creating a geofence within 1,850 feet of hospitals in New York state to deliver an advertisement, build consumer profiles, or infer health status. This means that advertisers can no longer target ads based on the location of potential customers near healthcare facilities.

Implications for Advertisers

The implications of this law are far-reaching, particularly because of how densely packed New York City is. Theoretically, an advertiser could geofence around another business that is proximate to a health care facility and still fall within the law’s prohibited radius, even if the advertiser had no interest in healthcare.

The law defines healthcare facilities as any governmental or private entity providing medical care or services, which could encompass many establishments on a New York City block. 

This means that many businesses could potentially fall within the prohibited radius, making it difficult for advertisers to target their ads effectively.

The Future of Advertising and Healthcare Data

This legislation comes at a time when the federal government is also scrutinizing how businesses use healthcare data for advertising. As privacy concerns continue to grow, we can expect more regulations like this in the future. 

Advertisers will need to adapt their strategies and find new ways to reach their target audience without infringing on privacy laws.

New York's ban on geofencing near health care facilities is a significant development in the advertising industry. It highlights the increasing importance of privacy and the need for advertisers to adapt their strategies accordingly. 

As we move forward, it will be interesting to see how this law impacts advertising strategies and whether other states will follow suit.