Marchex, Microsoft criticized on mobile advertising techniques

Seattle online advertising company Marchex is among those criticized in a 52-page complaint [PDF] today brought by the Center for Digital Democracy and U.S. Public Interest Research Group that says mobile marketers are using "unfair and deceptive practices." The complaint, filed with the Federal Trade Commission, also cites Microsoft's acquisition of mobile advertising startup Screen Tonic, noting how it attempted to target teenage girls with a mobile marketing campaign that captured their emails. And it points out how Kirkland-based HipCricket's mobile marketing techniques target Hispanics.

The report singles out Marchex's call tracking service, which is provided to mobile advertising companies such as AdMob, Ringleader Digital and 4INFO.

Here's an excerpt:

"Marchex surreptitiously gathers data on mobile users and even records calls made in response to ads. Marchex’s call tracking service enables mobile advertising providers to: “(i) track the calls generated by advertisements on their network, (ii) determine exactly which advertisements delivered the calls, (iii) track and report key information including the duration, time of day and geographic location of callers, and (iv) record the calls."

The complaint says that Marchex gathers the information without "adequate notice to the consumer" and it asks that the FTC  scrutinize the actions. It also lays out several steps on how companies should handle consumer information on mobile devices, including notifications to consumers of the data gathering tactics.

"If left unregulated, marketers will ultimately strive for nothing short of a totally mobile-based data collection and targeting environment," the complaint says.

Here's an overview from MediaPost, which notes that "mobile marketing companies do not typically collect names, phone numbers, email addresses or other so-called personally identifiable information."