Facebook allows businesses to target ads after shopping at brick and mortar stores

Retailers are teaming up with Facebook, offering personal information to create targeted ads.
1:58 | 12/15/19

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Transcript for Facebook allows businesses to target ads after shopping at brick and mortar stores
The worlds of brick and mortar and social media are entwined even more closely than you might have thought. Facebook is able to track your purchases at stores and then target you with ads online. Here's ABC's Becky Worley. Reporter: If you are hitting the mall this weekend to holiday shop, Facebook may be tracking your purchases. Reports that help from retail partners is monitoring what users are buying, not just online, but in brick and mortar stores too. It sends information about what you purchased. Reporter: According the business insider, retailers are teaming up with the social media giant offering Facebook personal information in order to create targeted ads. Retail companies sending names, phone numbers, email addresses and more, along with what products people purchase. Facebook then using this information to identify the user and its data base to target them with that business' ads. The way Facebook makes money is by selling ads, and the reason it's able to really dominate the online ad industry is because it controls so much personal information and data about its users. Reporter: Facebook confirming the practice saying, retailers are able to reach their customers with ads on Facebook by sharing offline events like an in-store purchase saying, this is standard for the industry. When asked, Macy's praised the collaboration as a way to fuel our growth. But Facebook says you can limit how much information is shared go to privacy settings. Then click ad preferences. From there, you can customize what kind of ads you're shown, and how your spending activity is tracked when you shop at a physical store. Now Facebook does say there's a way to find out why you're seeing the ads you're seeing. In each ad, you can click on the dropdown menu and it says, why am I seeing this ad? Facebook also says they want to give their users control to change their advertising settings. Guys? I know I get targeted a lot with those ads. We're locked in. We are locked in. They got you.

This transcript has been automatically generated and may not be 100% accurate.

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