FTC seeks comments on principles for self regulation of behavioral ads
The Federal Trade Commission is seeking comment on proposed privacy principles to guide the development of self regulation of online behavioral advertising.
The proposal notes that while behavioral advertising provides benefits to consumers in the form of free content and personalized advertising, the practice is largely invisible and unknown to consumers.
To address the need for greater transparency and consumer control regarding privacy issues raised by behavioral advertising, the FTC proposes:
• Every web site where data are collected for behavioral advertising should provide a clear, consumer friendly and prominent statement that data are being collected to provide ads targeted to the consumer and gives consumers the ability to choose whether or not to have their information collected for such purpose.
To address the concern that data collected for behavioral advertising may find its way into the hands of criminals or other wrongdoers, and concerns about the length of time companies are retaining consumer data, the FTC proposes:
• Any company that collects or stores consumer data for behavioral advertising should provide reasonable security for that data and should retain data only as long as is necessary to fulfill a legitimate business or law enforcement need.
To address the concern that companies may not keep their privacy promises when they change their privacy policies, the FTC proposes:
• Companies should obtain affirmative expressed consent from affected consumers before using data in a manner materially different from promises the company made when it collected the data.
To address the concern that sensitive data—medical information or children’s activities online, for example—may be used in behavioral advertising, the FTC proposes:
• Companies should only collect sensitive data for behavioral advertising if they obtain affirmative expressed consent from the consumer to receive such advertising.
The FTC is seeking comment on what constitutes “sensitive data” and whether the use of sensitive data should be prohibited, rather than subject to consumer choice. It also is seeking additional information about whether tracking data is being used for purposes other than behavioral advertising and, if so, whether the secondary uses merit some form of heightened protection.
“The purpose of this proposal is to encourage more meaningful and enforceable self-regulation to address the privacy concerns raised with respect to behavioral advertising,” the FTC says in the proposal “Behavior Advertising: Moving the Discussion Forward to Possible Self-Regulatory Principles.” “In developing the principles, FTC staff was mindful of the need to maintain vigorous competition in online advertising as well as the importance of accommodating the wide variety of business models that exist in this area.”
Copies of the principles are available at the Federal Trade Commission web site (www.ftc.gov). Comments can be sent to BehavioralMarketingPrinciples@ftc.gov.
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