Internet Marketers To Self-Regulate Behavioral Advertising… For Now
By Anna Johnson on February 21st, 2009The U.S. Federal Trade Commission (FTC) has said it still favors Internet marketers self-regulating when it comes to online behavioral advertising. Privacy advocates and others, however, argue that self-regulation does not sufficiently protect consumers.
Following its consideration of public feedback over the last two months, the FTC has released a revised set of four principles to guide self-regulation of online targeted ads. The principles are as follows:
“1. Websites should prominently note their behavioral advertising practices and give consumers an accessible way to opt out of such programs. Companies are encouraged to make these notifications separate from general privacy policies. Companies that collect information through mobile devices or other means should ensure they have sufficient disclosure mechanisms.
2. Companies are encouraged to maintain reasonable security and retention practices with respect to the data they collect.
3. Companies are also encouraged to inform consumers of retroactive material changes to their data collection policies.
4. And companies are encouraged to receive express consent from consumers before collecting “sensitive data,” such as information about children, health information, and Social Security numbers.”
For its part, Google has welcomed the revised principles and continues to argue the merits of self-regulation as the best way to protect consumers and promote innovation.
Privacy advocates, however, say the changes to the principles are minimal and may create more loopholes for online companies collecting behavioral data.
As such, public interest groups such as the World Privacy Forum and the Center for Digital Democracy are likely to maintain their scrutiny of Internet marketing practices, as well as their pressure on the FTC and other U.S. government bodies to regulate behavioral advertising.
Source: Stephanie Condon, “Congressman, privacy groups challenge FTC Web-ad policy,” CNET, February 12, 2009
