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Indeed, a variety of players – including state security agencies to Internet marketers to organized-crime circles – are creating an online world in which the very concept of anonymity has basically vanished.

“People at first thought anonymity was very simple,” he says. “It's the complete opposite: The Internet is a great tool for spying.”

“We're not working with any individual consumer information,” Mr. Green says. “In fact, we don't want it.” Instead, Generation5 says it focuses on balancing anonymity with consumer targeting.

The Priv3 Firefox extension lets you remain logged in to the social networking sites you use and still browse the web, knowing that those third-party sites only learn where you go on the web when you want them to.