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FTC Takes On Privacy as Industry Struggles to Respond

 

 

http://www.minonline.com/news/FTC-Takes-On-Privacy-as-Industry-Struggles-to-Respond_12921.html

 

Steve Smith

Monday, December 7, 2009

 

The Federal Trade Commission today opens a series ofroundtables on the

increasingly contentious topic of consumer privacy in adigital age. As

members of the industry, privacy advocates, and everyone'slawyers make

their way to Washington D.C. to add their voices to theproceedings, the

online publishing and advertising industries continue topromise but not

quite deliver the self-regulatory controls the FTC demandedof them almost a

year ago. When the FTC issued its first set of findingsabout the state of

behavioral targeting earlier this year, the group offeredguidelines it

hoped the industry would follow in policing itself. A groupof advertising

associations, led by the Interactive Advertising Bureauclaimed last summer

it would create a set of policies, a consumer educationcampaign and clear

privacy labels for ads and Web sites. As the FTC convenesits meeting today,

the IAB launches an ad campaign regarding online privacy anda Web site for

consumers dubbed "Privacy Matters."   http://www.iab.net/privacymatters/

 

At the same time The Center for Democracy and Technologylaunched a very

different consumer-facing site, "Take Back YourPrivacy" which invites

people to write their representative about the issue.

http://www.cdt.org/takebackyourprivacy

 

The site also offers a tool for reporting violations ofprivacy. A year

after the FTC first weighed in on the issue, the Internetplayers involved

do not seem to have gotten an inch closer to a credibleself-policing

mechanism, let alone consensus on what needs to be done toprotect

consumers.

 

In advance of the roundtable, several of the panel participantsfrom

consumer advocacy groups issued advance statements thatsuggest they will be

calling for more direct regulation of the industry."It's time to recognize

privacy as a fundamental human right and create a publicpolicy framework

that requires that right to be respected," say SusanGrant, Director of

Consumer Protection at Consumer Federation of America."Rather than stifling

innovation, this will spur innovative ways to make themarketplace work

better for consumers and businesses." Pam Dixon of theWorld Privacy Forum

claims that attempts at self-regulation "have beenutterly ineffective to

protect consumers. The sale of personal information is aroutine business

model for many in corporate America. ."

 

For their part, the components of the interactiveadvertising world continue

to press the side of increased consumer education about theways data are

collected on sites and making more visible opt out toolsthrough groups like

the Network Advertising Initiative. Nevertheless, it will behard for the

industry to cite its efforts at self-regulation when all ithas to show is a

new public service ad campaign and a Web site. There hadbeen plans for wide

adoption of privacy principles among advertisers andpublishers as well as

large labeling at sites and on ads that led to opt-out andeducational

materials. Those pieces of this self-policing project arestill being tested

we are told.  <| Powered by www.ISPIClips.com |>

 

But is the IAB effort too little too late? There is growinginterest among

legislators on a state and federal level to enact lawsgoverning online data

collection. The new FTC chairman Jon Leibowitz, who willopen today's

conference, had a long history of pressing for greaterprivacy control

before President Obama appointed him Chair earlier thisyear, so many in the

industry expect even greater pressure or eventual regulationto come from

the agency. A live Webcast of the event will be available atthe FTC site.

http://www.ftc.gov/bcp/workshops/privacyroundtables/index.shtml