Facing increasing pressure from the media and users, Facebook has called an all hands meeting tomorrow afternoon, at 4 PM Pacific, to discuss the company’s overall privacy strategy according to sources inside the company. Facebook has come under increasing scrutiny for a number of reasons and many were left with a sour taste in their mouth following a New York Times reader Q&A with Elliot Schrage, the company’s Vice President for Public Policy.
We covered that Q & A yesterday and I thought it was either brilliant or stupid with no in betweens. The GigaOm article in the above quote really lays into Facebook for its inability to just come out and say what it intends. As a result, there is a lot of confusion AND mounting hostility toward the social networking giant.
So Facebook now needs to pull itself together and it is calling everyone into a room to figure it out. Honestly, it may be too late to do something that is not harmful to the company in a big way.
While it’s unknown what Facebook will announce during the meeting, it’s pretty obvious that changes will need to be made if Facebook is going to regain users’ trust. The most likely change will come in the form of a temporary removal of the “Instant Personalization” service, or at the least, a shift to “opt-in”, something many privacy advocates have been calling for.
If Facebook does another “about face”, they would now have Beacon and the current privacy gaffe on their resume and trust will become zero. The biggest threat is that this “dirty little secret” which gets huge attention from insiders and even mainstream tech news outlets could go to the masses. Right now, I don’t think that most Facebook users even know there is a problem. It’s when everyone understands that Facebook is at worst trampling privacy concerns or at best confusing the issue to the state of being FUBAR there will be no good endings to this story for Facebook.
Just imagine what floodgates they will open if they cave under pressure on this one. Can they act to rectify this without doing some serious damage to their standing as a respectable company? Or, will they now demand such tight vigilance by consumer and government watchdogs that their ability to do business (i.e. sell ads based on user data) is crippled?