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Congress Wants Opt-In For Online Tracking

July 18 2008

In the US, behavioral targeting firm NebuAd has come under fire during a hearing in which politicians suggested that online consumer behaviour tracking was only acceptable with prior opt-in consent.

Members of the House of Representatives Telecommunications and Internet Subcommittee questioned NebuAd's practice of working with ISPs (Internet service providers) to track subscribers' web activities in order to deliver targeted ads to them.

Texas Representative Gene Green described the firm's opt-out procedures as 'contemptible', while others raised major concerns that it potentially violates federal and state wiretapping laws. Michigan Representative Bart Stupak agreed, asking why the burden to opt-out should be placed on the American consumer.

NebuAd has already seen customer US cable operator Charter Communications postpone controversial plans in which it intended to capture detailed information about the activities of its Internet subscribers and share them with the targeting firm.

When US Congressman Ed Markey asked NebuAd CEO Bob Dykes if he supported a policy where the consumer must say 'yes' before his company could 'roam through all their personal data' and then turn it into an information product that is then sold to other companies, Dykes refused to answer.

At the moment, NebuAd says partners are required to notify users of the tracking practice via e-mail, letter, or wording in their billing statements. However, Congressmen heard how this was not always carried out openly, with some firms simply communicating the information through posts on their web sites.

After continued public pressure from Markey, Dykes said that NebuAd is working on a system that will notify users about the tracking with messages sent to their web browsers. However, he did not agree to add a button through which consent could be actively given.

Dykes confirmed that his firm will work with privacy group the Center for Democracy and Technology (CDT) to address its concerns, but added: 'To adopt an across-the-board opt-in rule would potentially reduce the value of the advertising across the Internet, so I think major harm could be incurred that way.'

Web site: www.nebuad.com .

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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