FTC Updates Behavioral Ad Guidelines

In the US, The Federal Trade Commission (FTC) has issued a revised report which reinforces the view that companies which track peoples' online behaviour should follow self-regulatory guidelines to protect user privacy.

The FTC began investigating behavioral targeting after the Center for Digital Democracy and the US Public Interest Research Group filed a complaint about the practice in November 2006.

In its latest 55-page report, the commission updates concerns about how online advertisers can protect consumer privacy while collecting information about their online activities in order to serve up ads tailored to their interests.

Titled 'Self-Regulatory Principles for Online Behavioral Advertising', the report has been compiled following public discussions and feedback. It discusses the potential benefits of behavioral advertising to consumers, as well as the privacy concerns that the practice raises.

Additional guidance recommends how web sites should display information about behavioral ads, while providing an easily accessible way for consumers to choose whether to have their information collected for such purpose. Firms are also encouraged to design disclosure mechanisms that are separate from their privacy policies.

In addition, the report advises companies that collect information through mobile phones or other devices, to develop disclosure mechanisms that are effective for these platforms.

Finally, the report continues to urge companies to obtain express consent before collecting sensitive data regarding health, finances, or children, and encourages stakeholders to develop more specific standards to address this issue.

Nonprofit online privacy organization TRUSTe congratulated the FTC for issuing the principles, and encouraged businesses operating online to take on leadership roles to define self-regulatory standards around behavioral advertising data practices.

'Businesses should mold their own company standards to ensure that they promote transparency, meet consumer expectations for fairness and assist consumers in making informed choices when deciding whether to share information,' the organization said in a statement.

The FTC works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. Web site: www.ftc.gov .

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