So does Yahoo’s latest actions (among that of others) mean that they are crossing the line in their efforts to generate revenue. Or instead, would it be better to allow them to discover what works best for them as they companies like this remain unchecked?

If you use Yahoo’s Web search engine to learn about hybrid cars, the site will quietly note that you fit into a group of users it calls “Consciously Cruising.”

If you click on ads for moving van companies you will join the “Home Hopping” group. Shop for wedding cakes and you might be tagged as a future bride or groom.

This year, Yahoo introduced a computer system that uses complex models to analyze records of what each of its 500 million users do on its site: What they search for, what pages they read, what ads they click on. It then tries to show them advertisements that speak directly to their interests and the events in their lives.

Yahoo and the many other companies building similar systems say they are benign because they typically do not collect personal information like names and addresses…. Source: IHT