21 Oct 2009
The Unsettled State of Behavioral Targeting & Online Privacy Laws
There has been a lot of discussion about behavioral targeting recently. Not only are the companies who use this information following the developments, but so are the consumers who will be (possibly unwillingly) supplying this information. There is a definite consensus among networks as well as agencies that the ownership and usage of this behavioral data will be increasingly important in the future. This technology made national headlines on the front page of the New York Times on July 31st: http://www.nytimes.com/2009/07/31/business/media/31privacy.html
The public outcry over this “Big Brother” mentality has made privacy the largest concern. Many consumers are not comfortable with anyone having access to their personal information, whether it is an online search for medical help or a recent socks purchase. In a recent study by two University law schools, sixty-six percent of Americans were found to reject the idea of targeted ads. Not only are they scorning the invasion of privacy, but users are apprehensive that the data could be used beyond commercial means or to unfairly discriminate.
Currently, the FTC allows self-regulation around behavioral targeting, but the business landscape will be altered dramatically if that ever changes. Regardless of which side you stand on in this debate, almost everyone agrees that a new legislation needs to be clear and easy enough to implement by advertisers as well as networks or it is doomed to fail. Like any paradigm shift in business, this should open up opportunities for those who can provide a guiding light in this sea of change-both in services and in technology.
What will Congress decide? Follow the FTC’s discussions focused on exploring consumer privacy issues by attending the roundtables in Washington, DC beginning December 7th. For those that cannot make it, watch the live Webcast at FTC.gov. Check out the details at: http://www.ftc.gov/bcp/workshops/privacyroundtables/index.shtml
