FTC Sharpens Focus on Online Ad Privacy Issues

In the US, the Federal Trade Commission (FTC) has hinted that it will push for stronger data security laws, and does not believe that self-regulation by the online advertising industry will prove sufficient.

FTC Associate Director Maneesha Mithal testified before the Senate Committee on Homeland Security and Governmental Affairs this week, reports www.lexology.com .

Mithal indicated that the FTC, which strengthened the terms of the Children's Online Privacy Protection Act (COPPA) in December 2012, would now renew its focus on ads targeted at adults as well. Three core principles will be used in evaluating 'spyware':

1. a consumer's computer belongs to him or her, and it must be the consumer's choice whether to install software;
2. 'buried disclosures about material information necessary to correct an otherwise misleading impression are not sufficient in connection with software downloads'; and
3. '[consumers] should be able to disable or uninstall any software they do not want on their computer.'

Mithal said every business should consider these principles when operating an online advertising campaign.

The FTC's current focus is on consumer education, but the Associate Director's testimony suggests that 'stronger data security laws may be coming in the future and the FTC would fully support any such legislation' - including statutory civil penalties. Nevertheless the Commission is encouraging the online ad industry to develop standards and compliance measures.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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