The leading e-commerce site and the leading social network just shook hands on a tie-up that could lead to social shopping. Amazon.com launched a new beta feature Tuesday that lets shoppers connect their Amazon and Facebook accounts. The feature serves up gift recommendations for users and their friends based on the information stored in Facebook profiles.
Privacy advocates haven't launched any missives yet, but Amazon was nonetheless quick to stress that it will not share any user account information or purchase history with Facebook. Amazon also promised not to try to contact anyone's friends on the social network.
Intro To Social Shopping?
When you connect Amazon and Facebook, the Internet book-selling giant said it will improve your shopping experience via an Amazon Facebook page. Amazon offers three reasons why shoppers should make the Amazon-Facebook connection.
First, the company said it helps shoppers discover recommendations for movies, music and other products. Second, you can see upcoming birthdays of your friends and buy them a gift they'll enjoy because you can see their Amazon wish lists. Finally, you can explore your friends' profiles to see who has similar interests.
Greg Sterling, principal analyst at Sterling Market Intelligence, said the Amazon-Facebook deal could significantly improve product recommendations that Amazon offers, as well as increase frequency and engagement with the site.
"Ultimately it could help Amazon incrementally sell more stuff to people," Sterling said. "This was not an explicit part of the deal, but I also wonder whether Amazon will become a product data provider to any 'social shopping' initiative that Facebook might consider doing. I'm not sure, but it's interesting."
Will Facebook Be Regulated?
Amazon didn't go so far as to integrate the "Like" button on its product detail pages. Taking that step would have opened the door for Facebook to collect information about a customer  's book, music and other product preferences. It's not clear if that is enough to ward off criticism from privacy advocates.
On Wednesday, Mark Rotenberg, executive director of the Electronic Privacy Information Center, testified before Congress about Facebook and privacy. Rotenberg urged lawmakers to update federal law to protect the privacy of Facebook users. After outlining the value of Facebook, Facebook's approach to privacy, the risk to users, and consumer and privacy advocate complaints against Facebook, Rotenberg concluded government regulation is required.
"Mr. chairman, Facebook is a tremendous service, with the scope of e-mail, the telephone, and even the Internet itself. It is also the source of many privacy concerns of users today. The critical problem is not what users post; it is that Facebook changes the privacy settings too frequently and Facebook makes it too difficult for users to selectively post information," Rotenberg testified.
"Self-regulation has not worked because the FTC has been reluctant to pursue investigations," he said. "So EPIC recommends changes to ECPA in Title 18 that would give users greater control of their information and reduce risk when they go online."
Offsuit:
Posted: 2010-07-28 @ 1:13pm PT
What a huge disappointment. One of the few Internet companies left that I could trust, and they've hooked themselves into the absolute sewer of the net, Facebook. I probably won't stop shopping at Amazon, at least not immediately, but I'm now left wary of Amazon where I never was before. If they ever have a privacy screwup related to this relationship (which frankly, given Facebook's track record, I consider almost inevitable), then I'm done with Amazon forever. Facebook is the lowest-rated customer satisfaction company in America. Why would a quality company like Amazon hook up with them? Huge mistake, and time will show how huge, I think.
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