Behavioral Advertising Privacy Legislation Update
2009 has been an active year for self-regulation efforts on the part of the online advertising industry, led in large part by signals from the FTC that it may act to regulate behavioral advertising to protect consumer privacy. Associated Press coverage of the debate last week is a clue things are heating up, and this week the FTC announced it will host a hearing on the topic on December 7. Battle lines are being drawn between consumer privacy advocates on one hand and industry trade organizations on the other who are mobilizing to assemble self-regulatory guidelines to head off legislation. It's a foregone conclusion that Reps. Rick Boucher (D-VA) and Cliff Stearns (R-FL) are drafting an online privacy bill that would govern the collection and use of consumer online behavior. While the debate may go from sub-committee to the full Energy and Commerce committee this fall, it is looking less likely that legislation will be heard by full House of Representatives in 2009.
What's at issue primarily is the collection and use of behavioral data, the control consumers have over their own data and the likely harm, or lack therof, that could come from the data depending upon your position in the online advertising ecosystem.
Here is a roundup of publicly available information regarding where the FTC, key trade groups and Congress stand on the issues as of today.
December 16, 2008
Network Advertising Initiative Announces 2008 NAI Self-Regulatory Code of Conduct for Online Behavioral Advertising http://networkadvertising.org/networks/2008_NAI_Principles_PR_FINAL.pdf
February 12, 2009
FTC Staff Revises Online Behavioral Advertising Principles http://www.ftc.gov/opa/2009/02/behavad.shtm
June 18, 2009
U.S. House of Representatives - Committee on Energy and Commerce – Subcommittee on Commerce, Trade and Consumer Protection - Hearing on Behavioral Advertising: Industry Practices and Consumers’ Expectations http://energycommerce.house.gov/index.php?option=com_content&view=article&id=1678:energy-and-commerce-subcommittee-hearing-on-behavioral-advertising-industry-practices-and-consumers-expectations&catid=129:subcommittee-on-commerce-trade-and-consumer-protection&Itemid=70
July 2, 2009
Key Trade Groups Release Comprehensive Privacy Principles for Use and Collection of Behavioral Data in Online Advertising http://www.iab.net/about_the_iab/recent_press_releases/press_release_archive/press_release/pr-070209 http://www.iab.net/media/file/ven-principles-07-01-09.pdf
Privacy groups release "Online Behavioral Tracking and Targeting, Legislative Primer" http://www.uspirg.org/uploads/s6/9h/s69h7ytWnmbOJE-V2uGd4w/Online-Privacy---Legislative-Primer.pdf
Here are a few recent articles related to online behavioral advertising you may find of interest:
Four Privacy Protections the Online Ad Industry Left Out http://bits.blogs.nytimes.com/2009/07/06/four-privacy-protections-the-ad-industry-left-out/?ref=technology
FTC Hires Privacy Blogger http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=111800#comments
Fresh Views at Agency Overseeing Online Ads http://www.nytimes.com/2009/08/05/business/media/05ftc.html
The FTC Takes On Targeted Web Ads http://www.businessweek.com/technology/content/aug2009/tc2009082_486167.htm
Privacy Groups Aim for FTC to Help Guide Online Privacy Law