Self Regulation of Online Behavioral Advertising
Industry Promotes Seven Tracking Principles to Head Off Legislation
Sep 9, 2009
The looming battle over online behavioral tracking is likely to focus on whether industry self-regulation is sufficient to protect the privacy of Internet users. The current self regulatory package was developed by five “cross-industry” organizations and is similar to guidelines proposed by the Federal Trade Commission in February 2009.
A coalition of consumer and Internet rights groups says industry self-regulation is not sufficient to assure Internet privacy. The 10 organizations have called upon Congress to pass legislation which would restrict the tracking and use of consumer data on the Internet. A long-term battle is likely in Congress and may even extend past the current session.
Consumer groups refer to the issue as behavioral tracking. Industry groups call it behavioral advertising.
Rep. Rick Boucher, a Virginia Democrat, chairs the subcommittee in the House of Representatives Energy and Commerce Committee that will handle the Internet privacy legislation.
The five business organizations have developed and adopted what they call the “Self-Regulatory Program for Online Behavioral Advertising.” The five are the:
- American Association of Advertising Agencies (AAAA)
- Association of National Advertisers (ANA)
- Council of Better Business Bureaus (BBB),
- Direct Marketing Association (DMA)
- Interactive Advertising Bureau (IAB)
Better Business Bureau Calls It "Consumer Friendly"
According to the Better Business Bureau website, the program is designed to “apply consumer-friendly standards to online behavioral advertising across the Internet.”
The program defines behavioral tracking as:
“The collection of data online from a particular computer or device regarding Web viewing behaviors over time and across non-affiliate Web sites for the purpose of using such data to predict user preferences or interests to deliver advertising to that computer or device based on the preferences or interests inferred from such Web viewing behaviors.”
Seven Self-Regulation Principles
The self-regulation program lists its seven principles as:
- Education
- Transparency
- Consumer Control
- Data Security
- Material Changes
- Sensitive Data
- Accountability
The principles are assigned the following roles in regulating behavioral tracking:
Education: Calls for advertisers and Internet networks “to participate in efforts to educate consumers and businesses about online behavioral advertising.”
Transparency: Requires the companies to deploy “multiple mechanisms for clearly disclosing and informing consumers” about the collection and use of Internet data.
Consumer Control: Assures Internet users of methods to choose whether data is collected, used or transferred for behavioral advertising.
Data Security: Requires the companies to provide “reasonable security” and “limited retention” of the collected data.
Material Changes: Requires companies to obtain approval before making substantial changes in their data collection and use policies.
Greater Protection of Child Data
Sensitive Data: Requires “heightened protection for children’s data” and user consent for the collection of financial account numbers, Social Security numbers, prescriptions and medical records about specific individuals.
Accountability: Calls for programs to ensure compliance and report “uncorrected violations” to appropriate government agencies.
The principals are similar to the legislative proposals that the consumer and Internet privacy coalition has requested. The battle in Congress is likely to center on the accountability and policing of the principles.
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