Commentary Addressing Risks and Opportunities Through the Lifecycle of Data, Technology, Advertising and Innovation

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A coalition of advertising trade groups launched a new online behavioral advertising (&ldquo;OBA&rdquo;) opt-out program on October 4, 2010, to build on the self-regulatory principles they released last summer.&nbsp; The program, which is explained on the group&rsquo;s <a href="https://aboutads.info">website</a>, features an &ldquo;Advertising Option Icon&rdquo; that can be placed near online ads that collect data used to conduct behavioral advertising.&nbsp; Users who click on the icon will receive a disclosure statement about the data collection and use practices associated with the ad along with the ability to opt-out of being tracked. <img class="mt-image-left" style="float: left;margin: 0 20px 20px 0" src="http://dataprivacymonitor.bakerhostetlerblogs.com/wp-content/uploads/sites/5/2010/10/icon_enhanced_notice_lg.jpg" alt="icon_enhanced_notice_lg.jpg" width="138" height="155" /> The <a href="http://aboutads.info/principles/">Self-Regulatory Principles for Online Behavioral Advertising</a>&nbsp;the new icon enhances were released in July 2009 by the online advertising industry to correspond with the <a href="http://www.ftc.gov/opa/2009/02/behavad.shtm">guidelines for behavioral advertising</a>&nbsp;issued by the U.S. Federal Trade Commission in February 2009.&nbsp; The seven self-regulatory principles&mdash;education, transparency, consumer control, data security, consent before material changes, limiting collection of sensitive data, and accountability&mdash;were designed to address growing consumer concern about the collection and use of personal information.&nbsp; According to Network Advertising Initiative spokesperson, Andrew Weinstein, the new icon is designed to provide &ldquo;consistency to the visual icon, messaging and opt-out process across all of the participants in the online advertising industry.&rdquo;&nbsp;&nbsp; OBA and social networks are not easy to regulate, but the self-regulatory approach to this industry has come under fire by privacy advocates who argue that the approach fails to offer consumers meaningful, informed choices and that the new opt-out program is a last-ditch effort to avoid new federal legislation.&nbsp; Although the head of the FTC&rsquo;s Bureau of Consumer Protection, David Vladeck, has recently expressed his disappointment in the industry&rsquo;s self-regulatory efforts, he stated that he will continue to support self-regulation.&nbsp; Mr. Vladeck also stated that the FTC is reviewing the viability of a &ldquo;do-not-track&rdquo; mechanism following the announcement by Senate Commerce Consumer Protection Subcommittee Chairman Mark Pryor, D-Ark., that he is working on such legislation.&nbsp; The &ldquo;do-not-track&rdquo; mechanism would function like the national Do Not Call Registry by allowing consumers to opt-out of having their browsing activities tracked.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

“Advertising Option Icon” Will Allow Opt-Out of Online Tracking