Hi Alex,
Hope you are well sir.
Interesting read and I agree, no dealer should ever be in a position where they are forced to place anything on their sites, tags included. However, I do take issue with the vignette the author used to help sell the case:
"Did you ever have one of your customers approached by a competing dealer while you were still working a deal with them? The customer didn't contact them and sure didn't try to buy a car from them. So how did they know? Who told them? Well, the truth is one of your trusted vendors lifted that data from your website traffic — or from your CRM, or your DMS — and sold it to a data brokerage. The brokerage then resold that lead to your competitors. And since it was an "in-market" buyer, they paid a premium."
If a vendor is indeed stealing the lead/data and shopping it around, it is a severe offense. However, there are other ways to identify, and target, in-market shoppers that do not rely on stealing leads from the dealer. Please keep in mind there are hundreds of thousands of (maybe millions) consumer data streams that are being collected across every industry vertical you can imagine.
There are known products/systems/methods that can scan these streams to look for certain behaviors. Once the system determines a person is statistically likely to be "in-market," the lead is generated and sold to anyone willing to buy.