Wealth management firms are currently under the spotlight as a number of lawsuits pile up, accusing them of allegedly permitting third-party companies like Google and Microsoft to equip their websites with tracking software. This software is allegedly used to harvest user data that is then used to target site visitors with tailored advertisements.
Morgan Stanley Sued Over Alleged Data Privacy Breach
In a recent
This lawsuit, seeking class-action status, follows two similar lawsuits filed earlier in February against Edward Jones in federal courts in California. These suits allege that Edward Jones allowed its websites to be used by third parties such as LinkedIn, Google, and Meta to extract data for the purpose of targeting specific users with online ads.
Morgan Stanley Accused of Violating Privacy Laws
In his suit against Morgan Stanley, Elmarouk alleges that the firm “intentionally configured” its website to transmit browsing data to third parties and “permitted the Trackers to use that information for user profiling and targeted advertising.” He accuses Morgan Stanley of violating the federal wiretap act and California laws against the invasion of privacy. At the time of writing, neither Morgan Stanley nor Elmarouk’s lawyers, Ross Cornell and Reuben Nathan, have commented on the lawsuit.
Alleged Exploitation of User Data by Google and Others
The lawsuit filed by Elmarouk provides detailed descriptions of how third-party firms, including Google (owned by Alphabet), Microsoft, and the marketing and analytics company The Trade Desk, allegedly used tracking software to gather data. This data is claimed to have been used for devising targeted online ads. For instance, the suit alleges that Morgan Stanley embedded Google’s DoubleClick advertising system onto its site, which reportedly sends the full web page address viewed by a visitor to Google’s advertising servers, and simultaneously links browsing activity to persistent identifiers stored on the visitor’s browser.
Elmarouk, who had previously sued the cosmetics firm Estée Lauder on similar grounds, argues that he did not consent to “the installation, execution, embedding, or injection of the Trackers on [his] devices and did not consent to the contents of [his] communications with the Website being intercepted by third Parties.”
Edward Jones Also Accused of Data Privacy Breach
Edward Jones has been hit by similar accusations in lawsuits. One such lawsuit, filed by a California resident named Vishal Shah, alleges that Edward Jones allowed LinkedIn, owned by Microsoft, to install software that could track responses to an online questionnaire asking why prospective clients were considering working with a financial advisor. The data collected in this manner was allegedly used for devising ads appearing on LinkedIn, targeting the original user and those with similar characteristics.
Shah’s lawsuit argues that such information is highly valuable to marketers and advertisers, as the inferences drawn from users’ personal information and communications enable them to target potential customers, including providers of financial products and services.
As these lawsuits unfold, they highlight the importance of data privacy and the need for robust mechanisms to protect users’ personal information in the digital age.
Source: Here
