Facebook is working with a data company called Datalogix that can track whether people who see ads on the site are actually buying the advertised products in stores. Facebook has felt some pressure to prove the worth of its advertising, but its efforts to dig up data have raised even more concerns.

“We kept hearing back [from marketers] that we needed to push further and help them do a better job,” said Brad Smallwood, Facebook’s head of measurement and insights in a CNN report.

Datalogix has purchased data from about 70 million American households drawn from loyalty cards and other reward programs at retailers and grocery stores. By matching the corresponding emails from these reward programs with email addresses registered to Facebook accounts, Datalogix can track whether people are physically buying products that are advertised on Facebook. Facebook users are automatically included in Datalogix’s studies, and can only opt out by going directly to the Datalogix website.

Click Here to be taken to the Datalogix Opt Out Page.

Many privacy advocacy groups are concerned with how this data is being used.  “We don’t believe any of this online-offline data should be used without express consumer approval and an opt-in,” said Jeff Chester, executive director of the Center for Digital Democracy.

What do you think about Facebook and Datalogix using your information without your consent? What steps should be taken to make Facebook more transparent?

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