04 Mar 2026
Happy privacy bill season in the low-trust economy
Woodrow Hartzog and Neil Richards write, in Big tech is hungry for consumer data. Mass. needs privacy legislation now,
First, big tech companies have spent a lot of time and money trying to convince the American public that we don’t deserve strong privacy rules because they would hurt small businesses. Don’t fall for it. Most of the noise coming from “small businesses” is really big tech in disguise. This includes downplaying their role in scorched-earth lobbying against any strong privacy rule by bankrolling and leveraging “small business collectives” to give the appearance of some kind of grassroots movement. Fake grass-roots movements are what are known in the trade as astroturfing, and they are a trick.
How long will small businesses and organizations keep going along with this, as Big Tech keeps driving up customer acquisition costs?
Can small businesses compete on Google Ads anymore?
[M]ore than 50% of respondents to a recent poll said small businesses have been priced out of advertising on Google Ads.
The apparel retailer M.M. LaFleur had their customer acquisition costs on Facebook go from $13 in 2013 or 2014 to $250 today.
Because Big Tech’s advertising systems are auction-based, the companies can drive up their own revenue in the short term by allowing more illegal and policy-violating ads. Not only are legitimate businesses paying more for advertising, they’re competing for the consumer’s budget. As online ads just became the internet’s biggest malware machine, every dollar lost to fraud is a dollar that’s not available to spend at a legitimate business.
Critics of privacy laws often claim that they’re imposing compliance costs on businesses. In Enforcement Has Shifted. The Ecosystem Is Now the Target, SafeGuard Privacy gives a long list of scary paperwork. And Prof. Eric Goldman covers the record-keeping requirements that any small business participating in surveillance advertising has to keep up with.
But the compliance complex is missing the point. The reason for a privacy law is not so that small businesses can (1) lose money on increasingly expensive surveillance ads (2) feed data to Big Tech-enabled scammers to harm their customers and (3) lose even more money by paying more and more for “compliance” services and paperwork. Privacy laws, if well designed, are a protection for legitimate businesses and an incentive to protect customers—and a customer who is less likely to be harmed is one with more time and money for win-win transactions. News coverage of the PlayOn case focused on privacy harms to users and the cost of the fine. But the harder-to-measure costs are in the form of the ML training data that PlayOn just gave to Meta—enabling fraud and misinformation against customers and working against the company’s long-term interest in future sales.
Michael Farmer, in Ad Tech, which Creates ‘Audience Balkanization,’ is Ineffective for Many Advertisers and Unhealthy for Democracy, writes,
The technology that allows programmatic advertising to exist, enriching Google, Meta, Amazon and others remains a dangerous virus in a demographic society. There is so much money in the pipeline that it will not be abandoned.
The country is polarized not because people disagree. People in different bubbles never hear the same arguments or evaluate the same data. They live in different worlds.
Everyone gets a different story, and no one can see what the others are being told.
And they’re all taught to hate each other.
and
The most reliable metric is revenue growth, and the evidence is that brand revenue growth has not been enhanced by the shift to programmatic.
So Big Tech is turning us all against each other, and all they promise small businesses is ever-higher customer acquisition costs. (And infringing your copyrights and trademarks for “AI” but that’s another story). This could be the year that the astroturfing stops. Legit businesses and their customers have inherent shared interests that connect them more closely than either one could be connected to Big Tech or to online fraud and misinformation. A good privacy bill is a good advertiser protection bill, and the other way around. More: a privacy law shortcut
Bonus link
Google ads for fake locksmiths became well-known enough that Google (are you sitting down?) actually cancelled one act in their three-ring shitshow of fraud. Michael Marlin Jr. explains, in Google Ads for Locksmiths: Why So Stinkin’ Difficult? (Now that it’s harder for a criminal to play a fake locksmith on Google, they’re switching to fake SaaS, or fake employee scheduling portals. Winners don’t click search ads.)