Online advertising is often based on information about
a user's browsing habits, but the FTC said that consumers are often
unaware of this and are not given a chance to object. It has
proposed a set of principles that it says should be adopted by
industry.
"Behavioral advertising provides benefits to consumers in the
form of free content and personalized advertising but … this
practice is largely invisible and unknown to consumers," said an
FTC statement. "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 proposal document aims to make the advertising industry
create more stringent self-regulation and inform consumers more
fully that their online behaviour is being tracked.
It lays down a set of principles which it says should govern the
industry. The first of those is transparency.
"Every web site where data is collected for behavioral
advertising should provide a clear, consumer-friendly, and
prominent statement that data is being collected to provide ads
targeted to the consumer and give consumers the ability to choose
whether or not to have their information collected for such
purpose," says the document.
The FTC expressed concern that data gathered under one privacy
policy might be used differently if a company subsequently changes
its policy. It said that firms should only change their processing
of the information if they have the express permission of the
consumer.
The proposals also mandate increased security for collected
information. As the public becomes more sensitive about personal
data loss by companies and the possibility of identity theft, the
guidelines say that companies should be more careful with
information.
"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 fulfil
a legitimate business or law enforcement need," said the FTC.
The guidelines urge caution when collecting anything that might
be deemed sensitive data, such as medical details or information
about children's online activities. They say that such information
should only be used with specific consent. The FTC has also asked
for comment on a consultation on what kinds of information should
be deemed sensitive.
