Advertisers on the Internet aren't telepathic, but they still know what you're thinking.
"When you post, 'I'm gonna buy flowers for my mother,' you'll see an advertisement for a flower shop either instantly, or in the next few days," said Amanda Lenhart, senior researcher for Pew Research Center's Internet & American Life Project, in Washington, D.C.
According to Bao Nguyen, that's not a coincidence. As the vice president of tech research and development with AOL in Palo Alto, Calif., Nguyen works to place advertisements on personal computers that are best suited for an online user at a specific moment.
Nguyen uses software to track websites people visit on the Internet. Think of it as a GPS system that follows where you go on the web.
Nguyen simply gathers data from users' online activity, which he then sells to advertisers. While this information includes an individual's interests, Nguyen said he doesn't collect anything that will specifically identify them.
Companies like Facebook make their money by selling your information and "likes" to advertisers. This information is worth a lot because the advertisers can show you the right advertisement at the right time or when they think you're more likely to purchase that specific item or service. The "terms and conditions" of websites and software are written to allow them access to your personal information in order to personalize the ads and information you are shown.
"It all seems fine, and it looks great, but the thing is, the terms of service agreement is a barrier. It is standing between you and what you want," said Thomas Oscanyan, a software asset manager at the University of St. Thomas in St. Paul. "The challenge is to not only read, but understand and decline the terms if you find something within that you disagree with."
Facebook, in particular, has a fairly confusing contradiction in its Data Use Policy. In one section, Facebook says, "We do not share any of your information with advertisers, (unless, of course, you give us permission)." What this should mean to the user is that unless they directly allow Facebook to share their information with advertisers, Facebook will be legally unable to pass it along.