New FTC Consumer Privacy Requirements Criticized

Consumer advocacy groups say it doesn't go far enough

[Marcia]

New guidelines for tracking consumers online [sfgate.com]

With consumer privacy in mind, federal regulators issued new guidelines Thursday for Internet companies that track user behavior online and then tailor advertising accordingly.

But public interest groups criticized the recommendations, which allow Internet advertisers to regulate themselves, as a free pass for companies to continue intrusive data-collection practices.

The report by the Federal Trade Commission was highly anticipated by the online industry and privacy advocates, with a big chunk of an expected $25.7 billion in U.S. online ad spending this year hanging in the balance. In the end, the report offered only modest changes to a 2007 federal policy on the practice known as behavioral advertising.

Here's the announcement from the FTC, with a link to the PDF with the full text of the staff report on the right:

FTC Staff Revises Online Behavioral Advertising Principles [ftc.gov]

“Industry needs to do a better job of meaningful, rigorous self-regulation, or it will certainly invite legislation by Congress and a more regulatory approach by our Commission,” Leibowitz said. “Put simply, this could be the last clear chance to show that self-regulation can – and will – effectively protect consumers’ privacy in a dynamic online marketplace.”

But are most consumers even aware that their movements are being tracked? And if some do, how many know that there's a place to file a complaint?

[edited by: Marcia at 8:35 am (utc) on Feb. 13, 2009]

[Marcia]

Rep. Boucher Calls for Internet Ad Regulation [blogs.wsj.com]

Rep. Boucher is 100% right. Experience proves that being stalked by a merchant or ISP is not amusing.