Amazon's data-gathering habits under fire

Most recently, Amazon tangled with privacy advocates over a patent on technology that aims to track a shopper's gift-giving habits, including the recipient's age and preferences.

Karen Coyle, a member of Computer Professionals for Social Responsibility, worries that the technology would be used to gather information on children, perhaps violating a federal law that limits the gathering of information on kids under 13.

Amazon spokesman Craig Berman says the company hasn't yet used the technology, and he insisted it would not violate those federal guidelines.

Coyle said some privacy-minded users also might be turned off by the A9 search engine. Although such personalization would improve the quality of search results, Coyle said she would be uncomfortable with a commercial business keeping that data.

Analyst Mark Mahaney with American Technology Research also questions whether A9 is worth the hefty investment.

A9 ranked 41st in popularity among search engines in February, according to Nielsen/Net Ratings, attracting only a fraction of visitors to Google or Yahoo.

"It's a little more of a stretch to me as to why investors should be excited about that," Mahaney said. "Isn't that a little crowded space?"

Udi Manber, A9's chief executive, says the idea behind A9 is to improve search, both on Amazon and in general. A9 is adding some Amazon functions, such as reviews and recommendations, to a system that searches the Yellow Pages.

But Manber said A9 has no current plans to link customers' Web searches with their Amazon shopping habits, even though data from both sites are stored using the same customer log-in.

Amazon's backing of 43 Things potentially gives it an opening into social networking. At the site, people list personal goals and find out who else shares their ambitions.

Many companies, including Yahoo Inc., Microsoft Corp. and Google Inc., also are investing in technology that seeks to build communities, and Garrity said Amazon has a clear interest in cultivating that same feeling around its sales site.

But for now, it's unclear how 43 Things might eventually relate to Amazon's grander plans — Berman said it's too early to speculate on such things.

Even some of Amazon's biggest foes say customer tracking can make shopping more convenient.

Despite the benefits, however, government-backed restraints are needed as technology gets smarter, said Jason Catlett of the privacy advocacy group Junkbusters.

"People need legal rights to see the profiles that are built about them and to change or delete what they want," Catlett said.

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