Why companies may sell your data to third parties

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Although legitimate companies will buy data for advertising purposes, sometimes the data could be used for scams.

Oftentimes, the data is used to try to sell you products you might be interested in. Websites will collect info on which websites you visit or the items you buy online.

They'll also collect information such as your age, gender and location, according to public interest advocacy group U.S. PIRG.“Advertisers can buy your credit card transaction data and see if you're a frequent shopper at, say, liquor stores or fast food restaurants, and they can also see if you stop,” said R.J. Cross, director of the Don't Sell My Data Campaign for U.S. PIRG.

In other instances, U.S. PIRG said the information can be used to take advantage of people's private insecurities and weaknesses. One example U.S. PIRG gives is of diet pill companies targeting users struggling with eating disorders. “I really hate having to tell people to go look at privacy policies, but right now, it's the best place where we can find key information like what companies are getting a hold of our data, and what exactly are they doing with it,” Cross said.

Cross recommends you read websites’ privacy policies. There, you can learn what companies do with their data.

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